2018 (10) TMI 303 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 87 (A. A. R. – GST) – Maintainability of Advance Ruling Application – Section 97(2) of the Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act, 2017 – services of scientific testing and technical analysis on pharmaceutical products – determination of ‘place of supply’ – whether the activities provided by the applicant will be treated as ‘export of service’ under the provision of the Integrated Goods and Services Tax Act, 2017 and will consequently fall under ‘zero rated supply’ as per Section 16 of the IGST Act, 2017?
–
Held that:- The issue whether the activity of the applicant provided to foreign clients towards scientific testing and technical analysis services on pharmaceutical products which are supplied by an entity situated outside India would be treated as ‘export of service’ under the provisions of the IGST Act can be determined in light of various provisions of t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ng of M/s. Lambda Therapeutic Research Limited is rejected, under sub-section (2) of section 98 of the CGST Act, 2017 and the GGST Act, 2017. – GUJ/GAAR/ADM/2018/34 IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/35 Dated:- 30-8-2018 – R.B. MANKODI AND G.C. JAIN, MEMBER Present for the applicant : Shri Jigar Shah (M/s. Lakshmikumaran & Sridharan) The applicant M/s. Lambda Therapeutic Research Limited has filed application for advance ruling for determination of place of supply while providing services of scientific testing and technical analysis on pharmaceutical products. 2. The applicant submitted that the company is a global clinical research organization and inter-alia engaged in conducting bio-availability and bioequivalence and clinical trials for various pharmaceutical companies located in and outside India. In the process of providing the above services, the applicant provides scientific testing and technical analysis on pharmaceutical products and other incidental res
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of the IGST Act, 2017. 4. The applicant referred to Section 2(6), 13 and 16 of the IGST Act, 2017 and Rule 4 of the Place of Provision of Service Rules, 2012 (erstwhile). The applicant also referred to decisions in the cases of CCE, Pune-I vs. Sai Life Sciences Ltd. [2016 (2) TMI 724] and Principal Commissioner of Central Excise, Pune-I Vs. Advinus Therapeutics Ltd. [2016 (12) TMI 34] 5. The personal hearing for admission of the said application for advance ruling was fixed on 18.01.2018, however, on the request of the applicant, the adjournment was granted. During the personal hearing held on 05.02.2018, authorized representative wanted to amend the application qua formation of question and wanted to convince this authority on the issue of jurisdiction, which request was acceded to. 6. The applicant, vide letter received on 27.02.2018 submitted the revised application, wherein the following question has been raised for advance ruling – Whether the activity of the applicant provided t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
es it clear that in cases pertaining to determination of liability to pay tax on any goods or services or both, the advance ruling authority shall have the jurisdiction to hear the matter. The applicant also referred to clauses (i), (ix), (xvii) and (xviii) of Section 20 of the IGST Act, 2017 and submitted that in matters pertaining to liability to pay tax in certain cases, provisions of CGST Act shall apply and the jurisdiction of this authority to entertain the present application seeking advance ruling shall be determined by Section 97 of the CGST Act. Therefore, the provisions of IGST Act, 2017 itself enable the applicant to file the application for advance ruling. 8.2 The applicant further submitted that on a careful reading of Section 97(2) of CGST Act, it can be observed that the issues covered therein are overlapping and are also wide enough to cover various issues under its ambit. To elaborate, Section 97(2)(e) covers determination of liability to pay tax on any goods or servi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
stions as to whether the activity falls under export of service requires to be answered which will in turn depend upon whether it is export of service or not. In other words, the advance ruling is sought to determine the taxability itself and it is in the course of that determination, the ancillary issues are required to be dealt with. It is submitted that in respect of determination of liability to pay tax on any goods or services or both, the applicant is eligible to seek an advance ruling. 8.4 The applicant submitted that in the present case, the applicant satisfies the criterion required for filing the application for advance ruling and therefore, this authority possesses the jurisdiction to hear the application filed by the applicant. 9. On the personal hearing held on 05.04.2018, the authorized representative of the applicant reiterated the submissions already made and submitted that he has nothing more to submit on the issue of jurisdiction of this authority to decide this appli
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. No other issue can be decided by the Advance Ruling Authority and therefore the Acts limit the Advance Ruling Authority to decide the issues earmarked for it under Section 97(2). 13.1 The issue whether the activity of the applicant provided to foreign clients towards scientific testing and technical analysis services on pharmaceutical products which are supplied by an entity situated outside India would be treated as export of service under the provisions of the IGST Act can be determined in light of various provisions of the IGST Act, 2017 including Section 2(6) which defines expor
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
IGST Act, 2017 provides that zero rated supply means any of the following supplies of goods or services or both, namely :- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone Unit. 13.4 Thus, the entire issue is intrinsically related to determination of place of supply of service by the applicant. 13.5 The applicant has filed application for advance ruling for determination of place of supply while providing services of scientific testing and technical analysis on pharmaceutical products. Thus, the applicant is well aware that the issue is related to place of supply . 13.6 This authority has been constituted in exercise of the powers conferred by section 96 of the Gujarat Goods and Services Tax Act, 2017, which Act extends to the whole of the state of Gujarat. This authority is a creature of statute and has to function within the legal boundary mandated by the Act. As the place of supply is
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =