TMI Blog2022 (7) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... cant, i.e the supplier of services M/s Myntra Designs Pvt Ltd is located in India, the recipient of services, M/s Lenzing Singapore Pte Ltd. is located outside India, and the consideration is received in convertible foreign exchange and the Applicant and the overseas entity are two separate legal entities as per the agreement. The only issue to be decided is whether place of supply is outside India or not and this is outside the jurisdiction of this Authority. Unless this is decided, the question, Whether the transaction of the Applicant of providing space on its web-portal for advertisements provided by a foreign entity i.e., Lenzing Singapore Pte Ltd. for a consideration, is taxable? canriot be answered. - KAR ADRG 19/2022 - - - Dated:- 1-7-2022 - DR. M.P.RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER Represented by : Sri Tarun Gulati, Senior Advocate ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s Myntra Designs Private Limited, Sy. No 8 to 14 and 55, Alyssa Begonia Clover Embassy Tech Village, Outer Ring Road, Devarbeesanahalli Varthur Hobli, Bengaluru Urban-560103, having GSTIN 29AAECM9636P1ZJ, have filed an appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l operator, and settles the amount payable with the supplier of the said order within a specified period. 5.3 The Applicant is a registered person and discharges tax liability as per the provisions of the Central Goods and Services Tax Act, 2017 read with the Karnataka Goods and Services Tax Act, 2017 (hereinafter collectively referred to as Act ) with the registration number 29AAECM9636P1ZJ. 5.4 The Applicant on 22.07.2020 entered into an Advertisement Agreement ( Agreement ) with Lenzing, a company incorporated under the Companies Act, 1956 having its registered office at 111 Somerset Road, Unit #13-35 to #13-38, Singapore 238164. 5.5 As per the said Agreement, it was mutually agreed upon by the Applicant and Lenzing that advertisement material in the form of impressions will be provided to the Applicant by Lenzing for placement on the e-commerce portal website i.e., on www.Myntra.com, mobile application or any other platform of the Applicant. The relevant mutually agreed upon terms by the Applicant and Lenzing in the said Agreement are summarized for ease of reference as follows:- a. The Applicant shall use commercially reasonable efforts to deliver the impressio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed Representative appeared for virtual hearing proceedings held on 10.02.2022 and reiterated the facts narrated in their application. FINDINGS DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 8. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the authorized representative and also their submissions made during the time of hearing. 9. The transaction involved in the question is analysed and found that the applicant owns an e-commerce portal through which he is providing services of e-platform to the suppliers of fashion and lifestyle products. In his portal, the applicant is also providin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicant are covered under the Heading 9983 which reads Other professional, technical and business services and the same is taxable as per SI.No.21 of Notification No. 11/2017- Central Tax (Rate) dated: 28.06.2017 which is reproduced below: SI.No. Chapter,Section or Heading Description of Service Rate (per cent. ) Condition 21 Heading 9983 (Other professional, technical and business services) (ii) Other professional, technical and business services other than (i) above 9 - From the above entry, it is evident that, if the above said services are supplied intra-state by the applicant, then it is liable to CGST at 9% and SGST at 9%. If the said services are supplied interstate, then it is liable to GST at 18% as per SI.No.21 of Notification 8/2017-Integrated Tax (Rate) dated 28.06.2017 and if the said services are exported then it will be liable at zero rate. 14. Sub-section 6 of section 2 of Integrated Goods and Services Act 2017 defines 'Export of services' as below:- Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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