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2022 (5) TMI 964 - AAR - GSTLevy of GST - reverse charge mechanism - services of arranging for subscription supplied to the Applicant, by the Managers located in the non-taxable territory - whether the Manager is an intermediary or not - HELD THAT:- AGEL issues Notes which are subscribed by Investors. It is found that the Senior Secondary Notes issued by AGEL are in the nature of securities. The main supply of Notes is between AGEL and investors both acting as Principals and the Manager is supplying ancillary supply of arranging the main supply between the Principals. It is noted that an intermediary includes a person who arranges/ facilitates supply of securities between two or more persons. It is found that Manager has the characteristics of an agent and a broker, performing subsidiary role in arranging the said main supply. We note that Manager’s role is supportive in main supply. We find the Manager satisfying the definition of Intermediary as per IGST Act. AGEL is agreed upon that place of supply in present case is determined as per Section 13(8)(b) IGST Act which is the location of Manager. Both the Manager and Place of Supply both being in non-taxable territory, subject transaction is not an import of service as place of supply is outside India. GST is not leviable on subject transaction under RCM by AGEL.
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