In Re: Take Off Academy (Nidhi Rahul Gandhi)
GST
2018 (10) TMI 345 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 63 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, GUJARAT – AAR
Dated:- 30-8-2018
GUJ/GAAR/ADM/2018/33 IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/31
GST
R.B. MANKODI AND G.C. JAIN MEMBER
Present for the applicant: Shri Samir Siddhapuria, Advocate
The applicant Take Off Academy has filed application seeking advance ruling on following questions –
(a) The consideration received from M/s. Pearson VUE, for Tax Invoice No. 001 dated 31st July, 2017 for conducting test on behalf of M/s. Pearson VUE in India is export of services u/s 16(1)(a) of the IGST Act or not?
(b) If the answer of the above question is negative then transaction of supply of services is intra state supply of service or interstate supply of services?
2. The applicant has submitted that Pearson US enters into an agreement with certain Indian Organizations / e
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ving exams. It is therefore submitted that the applicant is providing services to the recipient situated outside India and receiving consideration from outside India and hence considering the provisions of Section 2(6), 2(14), 2(15), 13 and 16 of the Integrated Goods and Services Tax Act, 2017 (herein after referred to as the 'IGST Act, 2017') and Section 2(93) of the Central Goods and Service Tax Act, 2017 (herein after referred to as the 'CGST Act, 2017'), the supply of services provided by the applicant to M/s. Pearson VUE is required to be held as export of service as zero rated supply.
3. The personal hearing for admission of the said application for advance ruling was held on 18.01.2018. Shri Siddhapuria was given an opportunity to explain as to how this authority is having jurisdiction to decide this matter and was also given liberty to re-frame / amend application, if he wanted.
4. The personal hearing for admission of the said application for advance ruling was again held on
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this authority has jurisdiction to decide the liability to pay tax under Section 97(2)(a) and (e). The applicant also referred to Section 20 of the IGST Act, 2017 and submitted that sub-section (xvii) of said Section 20 clearly provides that the advance ruling provision of CGST Act will mutatis mutandis applies to the IGST Act, 2017, therefore this authority is having jurisdiction to decide the question posed for determination. The applicant also referred to rulings given by West Bengal Authority for Advance Ruling and Kerala Authority for Advance Ruling.
7. We have considered the submissions made by the applicant in application for advance ruling, in the letters dated 21.03.2018 and 12.04.2018 as well as submissions made during the course of personal hearings.
8. Section 97(2) of the CGST Act, 2017 and Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the 'GGST Act, 2017') empowers the Advance Ruling Authority to decide the issues, which are as follows :-
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of service' under the provisions of the IGST Act, 2017 can be determined in light of various provisions of the IGST Act, 2017, including Section 2(6), which defines 'export of services'.
9.2 The definition of “export of services” as per Section 2(6) of the IGST Act, 2017 is as follows :-
“2(6) – “export of services” means the supply of any service when,
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;”
Thus, one of the important requirements of supply of any service to be treated as 'export of service' is that the place of supply of service is outside India.
9.3 The provisions for determination of pl
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ction 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 not covered by Section 97(2) of the Acts, this authority is helpless to answer the question raised in the application, as it is lacking jurisdiction to decide the issues. The jurisdiction of this authority does not extend to the questions on determination of 'place of supply'.
10. In the Advance Ruling dated 21.03.2018 of West Bengal Authority for Advance Ruling in case of Global Reach Education Services Pvt. Ltd., it has been held that had there been a dispute relating to 'place of supply' that authority would not provide a ruling on the issue at all. In the Advance Ruling dated 26.03.2018 of Kerala Authority for Advance Ruling in case of M/s. Synthite Industries Ltd., there has been no discussion or decision as to whether the advance ruli
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