9911796707
TMI Blog2018 (11) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGSI' Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Brier Facts-- The applicant is acting as distributor or marketing agent of lottery schemes organised by the State Government of Mizoram (hereinafter referred as 'organizing state') and procure online tickets from organising state for distribution across Maharashtra. The lottery tickets are sold through a chain of dealers / sales terminals of applicant spread across Maharashtra. Copies of the agreement made between organizing State and applicant is attached herewith and marked as Exhibit 1) The applicant is registered under GST primarily to pay GST under Reverse Charge Mechanism on supply of lottery tickets by the organising state. There is no dispute that rate of GST prescribed on lottery tickets is 28% if lottery scheme is authorised by the Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nising state. 2. That the supply of lottery tickets are covered under RCM under IGST Act as well as under CGST/SGST Act; 3. That under the IGST Act, Government issued Notification No. 4/2017 - IGST (Rate) and notified supply of lottery tickets as goods covered under RCM. The distributors / agent of organising state have been notified as person liable to pay IGST; 4. That in the instant case (based on agreements attached with Brief Facts given in Annexure 1 and marked as Exhibit 1) the supplier (i.e. organising state) is located outside Maharashtra; 5. That in the instant case, the recipient of supply i.e. the applicant) is located in the State of Maharashtra; 6. That as per Sec. 7 (1) of IGST Act, which reads as under - Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in- (a) two different States; (b) two different Union territories; or (c) a State and a Union territory, Shall be treated as a supply of goods in the course of inter-State trade or commerce 7. That the place of supply is State of Maharashtra in the instant case, as determined under Sec.10 (1) (C) of IGST Act, 2017 which reads as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... einafter referred to as 'organising state') and procure online tickets from organising state for distribution across Maharashtra. In Point No.15 of the application (Annexure-1), the applicants submitted that the lottery tickets are sold through a chain of dealers/sales terminals of applicant spread across Maharashtra. Further submitted that the applicant is registered under GST primarily to pay GST under Reverse Charge Mechanism on supply of lottery tickets by the organising state and the rate Of GST prescribed on lottery tickets is 28% if lottery scheme is authorised by the State and submitted that there is no dispute that reverse charge mechanism is applicable on the supply of lottery tickets by the organising state to distributors (like applicant) and mentioned/ discussed Sec.5(3) of IGST,2017 and Serial No.5 of Notification No.4/2017-IGST(Rate). 3. The basic issue to be decided in the application is whether (i) Whether applicant is liable to pay IGST under Section 5(3) of IGST Act,2017; (ii) Whether Serial No.5 of Notification No.4/2017-Intergrated Tax (Rate) is applicable on supply received by the applicant. The applicant in Point No.15 of the application, have stated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e State Government of Mizoram (hereinafter referred as 'organizing state') and procures online tickets from organising state for distribution across Maharashtra. The lottery tickets are sold through a chain of dealers / sales terminals of applicant spread across Maharashtra. 2) We find that the applicant is paying GST under Reverse Charge Mechanism (hereinafter referred as RCM) on supply of lottery tickets by the organizing state. He is having no dispute that rate of GST prescribed on lottery tickets by way of RCM is 28% if lottery scheme is authorised by the State. 3). We find that the applicant has raised the following questions before the advance ruling authority: i. Whether applicant is liable to pay IGST under section 5 (3) of IGST act, 2017. ii. Whether Serial No.5 of Notification No. 4/2017 - Integrated Tax (Rate) is applicable on supply received by the applicant. 4) We find that Section 5(3) of the IGST Act reads as under:- Section 5(3) -The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services ..... X X X X Extracts X X X X X X X X Extracts X X X X
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