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2021 (7) TMI 263 - AAR - GSTClassification of services - services of support services to Airbus SAS which is separately compensated with a service fees computed on a cost-plus markup basis - Intermediary services or business support services? - Zero-Rated Supply or a Normal Supply - relationship of principal and agent - HELD THAT:- The applicant is of the opinion that the activities undertaken by them are classifiable under Heading 9983 with description of ‘Other professional, technical and business services’. As per the explanatory notes to the scheme of classification of services, heading 998399 offers the same description. This heading includes specialty design services including interior design, design originals, scientific and technical consulting services, original compilation of facts/ information services, translation services, trademark services and drafting services. Intermediary services or not - HELD THAT:- The reliance on principal to principal relationship or calling oneself as an independent contractor is not relevant for the purpose of determining an intermediary as per the definition. An intermediary will merely facilitate or arrange the supply of goods or services between two or more people but will not be providing such supplies on his own account. Here, the word, ‘such’ is of paramount importance. ‘Such’ goods in the present case are the raw materials supplied by the vendors to Airbus Invest SAS, France - the activities performed by the applicant are fulfilling the parameters mentioned in the definition of ‘Intermediary’ as per Section 2 (13) of IGST Act, 2017. The activities carried out in India by the Applicant would constitute a supply as “Intermediary services” classifiable under SAC 998599 - The services rendered by the Applicant do not qualify as ‘export of services’ in terms of sub-section 2 of Section 6 of the IGST 2017 and consequently, are exigible to GST at the rate of 18% in terms of clause (iii) of entry no. 23 of N/N. 11/2017-Central Tax (R) dated 28.06.2017.
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