Home Case Index All Cases GST GST + AAAR GST - 2020 (1) TMI AAAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 1596 - AAAR - GSTLevy of GST - services received by it from a provider of service located in a non-taxable territory - reverse charge mechanism - supplier or not - applicability of provision of sec 5(3) read along with notification No. 10/2017 IGST(Rate) dated 28.06.2017 - HELD THAT:- The services provided by ITEES to DoSD, Govt of MP have already been accepted by appellant and held as falling under reverse charge as per section 5 (3) of IGST Act, 2017 read with notification 10 IGST (Rate) dated 28.06.2017. These services are found awfully close to entry XVIII of Eleventh Schedule of Constitution of India. While reading the relevant entry in the notification it is found that it also covers “by way of any activity in relation to any function”. This phrase enlarges the scope of every entry to a very wide degree. The services being provided by ITEES may not be directly that of entry XVIII of Eleventh Schedule but when we delve deeper and resort to “in relation to” the function entrusted to a Panchayat under article 243G of Constitution of India, it attains the status which fits very properly. The entry requires the services to qualify either 243G or 243W. 243W being relevant for Municipality. Thus, the services provided by ITEES to DoSD are held to find favour with entry 3 of notification 9/2017 IGST (Rte) dated 28.06.2017 and thereby are held to be exempt from GST. As the appellant has been adjudged falling under reverse charge provisions as per section 5 (3) of the IGST Act, 2017 the second leg of this sub-section also comes into play. It says that once liability of reverse charge is imposed, all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. This provision makes the appellant a supplier. Thus, it is a case of no supply as per notification 11/2017 IGST (Rate) dated 28.06.2017.
|