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TMI Blog2018 (12) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... oking value received from website users? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST 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- STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTIONS : Mr. Sadashiv Anajee Shete(hereinafter referred to as "Applicant") is engaged into the business of assisting believers, followers and devotees to book pundit/Brahmins online for their religious ceremonies like pujas, abhisheks etc. The said service is being provided through applicant's own website. Applicant hires various expert Pundits in order to provide services of religious ceremony like pujas, abhisheks etc. Applicant has three types of busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further report called for is as under: 1. Whether exemption under S. No. 13 of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant? The exemption under the said Notification is available to the person by way of a) Conduct of any religious ceremony; b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income Tax Act, 1961 or a trust or an institution registered under sub clause (v) of clause (23C) of Section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of Section 10 of the Income-tax Act: The Applicant unit is not a charitable trust; they are conducting religious ceremonies by hiring various Pundits/ Brahmins for the welfare of the people through its own website. Hence it is felt that the exemption under the Notification is not available to the Applicant. 2. Whether the Applicant is liable to get registered under Section 22/24 of CGST Act 2017? The Applicant is liable to get registered after crossing the threshold limit of 20 Lakhs. 3. If the Applicant is liable to pay GST, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T on the said services. Therefore, applicant has raised the questions in his application for the clarity as under:- 1. Whether exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant? 2. Whether the Applicant is liable to get registered under section 22/24 of CGST Act, 2017? 3. If the Applicant is liable to pay GST, then on what value GST liability needs to be discharged, whether on the commission which the Applicant receives from pundits/website users or on the booking value received from website users? 4. Considering the facts of the case and business activity carried out by the applicant, In respect of Question No.-1, 4.1. We find that applicant is mainly providing the services to the interested persons through hiring of pundits and Brahmans for religious ceremony like puja, abhishek etc.it needs to be examined as to whether the Sr. No .13 of Exemption Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant? The entry No. 13 of said notification is reproduced as under:- Sr. no Chapter, Section, Heading, group of Service Code (Tariff) Description of Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely" person. The applicant is taking booking of services online on his own web site from the customers and intimates the names of pundits/ Brahmins who would perform the job to the customers also on online. For that purpose he is charging to the customers as per the models submitted. Therefore, the Applicant is not covered under the scope of exemption notification entry No .13. 4.3. In the present case Punditji's are the person who are actually performing the services like puja, abhishek to the customers and therefore they are eligible for exemption from GST for their supply of services. Hence the applicant is not covered under the entry No. 13 of exemption notification No. 14/2017-Central Tax (Rate) dated 28th June 2017 and therefore his services are not exempt. Hence it is not applicable to the Applicant. 5. Question -2, Whether the Applicant is liable to get registered under section 22/24 of CGST Act, 2017? 5.1 We find from the above discussion, the applicant is providing the services to the public. The supply of impugned services are not exempted from the GST law to the applicant. Therefore it is transaction of supply of taxable services. The section 22/24 are relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity. We find that applicant is providing the services and doing the activities through electronic network of owns website. The business compliance is also made through electronic network media to the customers. He operates or manages digital or electronic facility is giving to the customers. He has facilitate one of the platform to the recipient of services on electronic basis through their internet website and operate his business .it is business of e commerce. Therefore we find that applicant is covered under section 2 (44) and 2(45) of CGST/MGST ACT as a "Electronic commerce" and "Electronic commerce operator". The definition of 2(44) and 2 (45) are reproduced as below for the clarity purposes, 2(44) "electronic commerce" means the supply of goods or services or both, including digital products over digital or electronic network; 2(45) "electronic commerce operator" means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce; 5.3. We have seen that the as per the definitions as above, applicant is squarely covered under the "Electronic commerce operator Considering the section 24-and the categories of persons mentioned t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of the supplier who receives the subsidy. 6.2 Considering the facts of the transaction referred by the applicant, as per section 15 (1) the value of supply of services shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. In the present case we find that applicant and recipient are not related persons and price received is sole consideration. We further see that these services are given by the applicant in his business models to choose the type of model. In all the three business models we find that consideration is first received by him on online as a whole and thereafter major part of it, is given to Pundits who are having an agreement with the applicant to provide their services as and when it is requisitioned but they are not the applicant's employees but are providing their services independently. The actual basic services like puja, abheshek etc are performed by the pundits or Brahmins which are exempted by nature of notification issued under GST ACT. The commission portion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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