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2020 (3) TMI 894 - AAR - GSTLevy of IGST - Export of services - Reverse Charge Mechanism - intermediary services or not - eligibility of Input Tax Credit - Provision in GST Returns to Show the transactions - IGST from Customer not collected and is absorbed as Cost-impact on the transaction value. Do export of services attracts IGST under RCM? - HELD THAT:- The Reverse Charge Mechanism is nothing but shifting the tax liability on to the receiver. In the instant case the applicant is, undoubtedly, a supplier and hence the question of levy of IGST on export of services, under RCM, does not arise. Do the services considered as Intermediary Service? - HELD THAT:- In the instant case the applicant acts as an agent, in terms of the aforesaid agreements, to the parent company Fom Industrie s.r.l, Italy as well as M/s. Universal Pack s.r.l, Italy beyond doubt. Therefore the supply of services of the applicant under these transactions squarely falls under the Intermediary services and thereby the supply is in the taxable territory and thus the said supply is taxable, under forward charge mechanism. Is IGST paid under RCM eligible for ITC? - HELD THAT:- The levy of IGST is only on the inter-state supplies and importation of goods/services is treated as inter-state supply, in terms of Section 7(2)/7(4) of the IGST Act 2017 respectively. The IGST is levied on import of goods, as part of customs duty, and collected under The Customs Act 1962. The IGST paid on clearance of imported goods by the applicant is available for ITC to the applicant. Further import of services attract IGST and the concerned importer has to discharge the said levy under RCM, which is also available for ITC to the importer of services. In the instant case the applicant is not importing any services and hence payment of IGST under RCM does not arise. Provision/ s in GST returns to show the transactions of the applicant - also, no IGST collected from the Customer and is absorbed as Cost-impact on the transaction value - HELD THAT:- No rulings are given in respect of fourth and fifth questions, as they do not get covered under Section 97(2) of the CGST Act 2017 and hence out of the jurisdiction of this authority.
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