Home Case Index All Cases GST GST + Commissioner GST - 2018 (9) TMI Commissioner This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 2013 - Commissioner - GSTRefund claim - intermediary services - whether the rejection has been made in terms of the Legal provisions guiding issuance of LUT under GST? - whether the services in which the Appellant is engaged amounts to Export of services or Intermediary Services? - HELD THAT:- In the present case, the services provided by the Appellant located in India to the recipient located outside India in lieu of consideration charged for the said services amounts to ‘supply’ of services. Now, in order to determine whether the said transaction will be Export of Services, the ‘place of supply’ of such services must be determined. Section 13 of IGST Act determines the place of supply of services where either the location of supplier or the location of recipient is outside India. Here, default Section 13(2) provides that the ‘place of supply’ shall be the ‘location of the recipient’ unless the services falls within the ambit of specified Sections from 13(3) to 13(13) of the IGST Act - In pursuance of Section 13(8)(b)of the IGST Act, 2017, the place of supply of the “Intermediary services” shall be the ‘location of the supplier of services’. In the present case, the appellant is rendering services on behalf of the OCA and not as an independent Service provider. In terms of the aforesaid agreement/MOU, with the OCA, as applicable during the relevant period, the Appellant assists intended people to become students of OCA clients, i.e. foreign Universities/Institutions and for that purpose provides all the necessary information about the course, course fee, minimum Level of English Language proficiency etc., and assists them in completing Admission application forms and its submission with those foreign universities/institution and the services culminate in India prior to travel abroad by the student - Commission is paid to the OCA in respect of each student enrolled through the recruitment agent on the basis of converted leads i.e. on per student basis who takes admission by the foreign University/Institution. Appellant receives consideration from OCA as per terms of MOU. Since the nature of activities or services undertaken by the appellant are as a facilitator, and hence, the Appellant is to be considered as an intermediary in terms of Section 2(13) of the IGST Act. The appellant has failed to observe the provisions of law, so far as the facts of the case are concerned. The contraventions of various provisions of Central Goods and Services Tax Law and the Integrated Goods and Services Tax Law, stand clearly proved against the appellant, as such duty, interest and penalty, as per above provisions of law are held to be recoverable/imposable upon them. The services of the Appellant are not ‘Export of Services’ under the GST Act and are exigible to tax - appeal dismissed.
|