Home Case Index All Cases GST GST + AAR GST - 2021 (1) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 544 - AAR - GSTClassification of supply - contract with SPG Prints Austria GMBH (SPA) to provide particular services to customers of SPA in India, as per SPA’s instruction - individual supply or composite supply of service? - whether the specified transaction of the Applicant is to be reckoned as being provided to SPA or to the customers of SPA located in India? - whether the specified transaction of the Applicant could be categorized as that of an “intermediary” as per Section 2(13) of The Integrated Goods and Service Tax Act, 2017? - Export of service as per Section 2(6) of The Integrated Goods and Services Tax Act, 2017. Whether, in the facts and circumstances, the specified transaction of the Applicant should be categorized as individual supply or composite supply of service as per the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017? - HELD THAT:- It was observed by Authority for Advance Ruling that no remuneration / consideration is received by the applicant from Indian Customers. Applicant would only receive from WWD US, a fee equal to the operating cost incurred by the applicant plus mark up of 13% on such costs for payment processing services. It is noticed that applicant would receive said fees from WWD US, even in respect of Indian Customers, who directly remit service charges to WWD US through International Credit Card, wherein applicant is not in the picture. In view the above it was observed that by providing the payment processing services to WWD, the applicant is not providing any service to the customers of WWD in India - The applicant satisfies all the three conditions, of Composite supply hence the applicant services get covered under the definition of “composite supply”. Whether, in the facts and circumstances, the specified transaction of the Applicant is to be reckoned as being provided to SPA or to the customers of SPA located in India? - HELD THAT:- It is an exhaustive definition, implying it can neither be expanded nor reduced. In the context of a supply involving payment of consideration, a ‘recipient’ of supply of goods or services means the person who is liable to pay the consideration and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied. The ‘recipient’ is, therefore, so defined as to make separation impossible between the person to whom the supply is made and the one liable to pay the consideration. Of course, when no consideration is involved, as under clause (c) of the above section, the recipient can only be the person to whom the service is rendered. The person who receives the supply in India should, therefore, be considered as the recipient, being inseparable from the foreign buyer as far as the Applicant’s supply is concerned - thus, the Applicant supplies the composite service to the recipient located in India. Whether, in the facts and circumstances, the specified transaction of the Applicant could be categorized as that of an “intermediary” as per Section 2(13) of The Integrated Goods and Service Tax Act, 2017? - HELD THAT:- The applicant specified transactions are squarely covers under the definition of “intermediary” as defined under Section 2(13) of the IGST Act, 2017 - the applicant’s activity falls within the ambit of “intermediary” as defined under Section 2(13) of IGST Act, 2017. Whether, in the facts and circumstances, the specified transaction qualifies to be “Export of service” as per Section 2(6) of The Integrated Goods and Services Tax Act, 2017? - HELD THAT:- The specified transaction do not qualifies the export of service because all the conditions which are stipulated under Section 2(6) of IGST Act, 2017 are not satisfied which is the foremost requirement for any transaction to be qualified “Export of Service”.
|