2018 (11) TMI 886 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (19) G. S. T. L. 571 (A. A. R. – GST) – Levy of IGST u/s 5 (3) of IGST act, 2017 – supply of lottery tickets by the organising state – applicability of Serial No.5 of N/N. 4/2017 – Integrated Tax (Rate) – Reverse charge mechanism – Held that:- Applicant is recipient of supply in the form of lottery and is located in Maharashtra. The supplier of lottery is the State Government of Mizoram which is located outside State. Therefore as per the provisions of Section 7(1) of the IGST Act, the transaction shall be treated as a supply of goods in the course of “interstate” trade or commerce – In view of Section 5(3) of the IGST Act, N/N. 4/20171ntegrated Tax (Rate) dated 28.06.2017 has been issued which provides the description of goods in respect of which Integrated Tax shall be paid on Reverse Charge basis by the recipient of the Inter-State supply of such goods.
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The supplier of Lottery in the present case is the Stat
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king an advance ruling in respect of the following ISSUE. 1. Whether application is liable to pay IGST under section 5 (3) of IGST act, 2017. 2. Whether Serial No.5 of Notification No. 4/2017 – Integrated Tax (Rate) is applicable on supply received by the applicant. 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 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 S
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he Government nutty, 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 or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. The aforesaid provision provides for powers to notify supplies under RCM and recipient became the person liable to pay GST in such cases. However, the determination of nature of supply and tax rate payable Will be same as applicable to supplier. Vide Serial No. 5 of Notification No. 4/2017 – IGST (Rate) (similar notifications issued in CGST SGST also], the following supply of Goods has been notified under RCM – Description of Goods Supplier of Goods Recipient of Goods Supply of lottery. State Government, Union Territory or any local authority Lottery distributor or selling age
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rketing agents of such organising 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
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ide Maharashtra and place of supply is in Maharashtra, the transaction ought to be treated as inter-state supply as per Sec.7(1) given in Para 6 above. 10. That therefore, IGST is payable on supply of lottery tickets by the organizing State from Outside Maharashtra to a dealer located in the State of Maharashtra. 11. That the applicant prays before Hon ble Authority to pronounce the ruling based on the aforesaid interpretation of law and held the levy of IGST on the supply of lottery tickets involved in the instant case; 12. That any other interpretation will leave Serial No. 5 of Notification No. 4/2017 ibid as obsolete and useless and IGST would be never payable; 13. That the applicant craves leave to add / modify any of the above ground during the Course of hearing. 03. CONTENTION – AS PER THE CONCERNED OFFICER- The submission, as reproduced verbatim, could be seen thus- M/s. Ecool Gaming Solutions Pvt. Ltd., 37/1966, 613-A-Wing, Kohinoor City, 6th Floor, L.B.S. Marg, Kuria(West), M
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he 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 that the relevant provisions viz. Section 5(3) of IGST Act, 2017 and Serial No.5 of Notification No.4/2017-IGST(Rate) dated 28.06.2017 under which the a
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t is liable to pay IGST under Section 5(3) of IGST Act,2017, the answer is Yes . (ii) whether Serial No.5 of Notification No.4/2017-Intergrated Tax (Rate) is applicable on supply received by the applicant, the answer is Yes . 04. HEARING The case was taken up for Preliminary hearing on dt. 17.07.2018 when Sh. Mahesh Bhattar, consultant along with Sh. Mahadev Batwalkar, Sr. Manager Taxation appeared and requested for admission of application as per contentions in their ARA. Jurisdictional Officer, Sh. Shashikant Deshmukh Supdt., Mumbai East Commissionerate appeared and made written submissions. The application was admitted and called for final hearing on 07.08.2018, Sh. Mahesh Bhattar, consultant along with Sh. Mahadev Batwalkar, Sr. Manager Taxation appeared and made oral and written submissions. Jurisdictional Officer, Sh. Manoj Kumar Inspector Mumbai East Commissionerate appeared and stated that they have already made written submissions. 05. OBSERVATIONS We have gone through the fac
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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 or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. 5) The above position would be very clear from the facts of the case which are reiterated as under:- In the present case, applicant is recipient of supply in the form of lottery and is located in Maharashtra. The supplier of lottery is the State Government of Mizoram which is located outside State. Therefore as per the provisions of Section 7(1) of the IGST Act, the transaction shall be trea
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upplier of Lottery in the present case is the State Government of Mizoram and the recipient of supply i.e. Lottery distributor or Agent, is the applicant in the present case who is located in Maharashtra and therefore the applicant is liable to payment of IGST under Reverse Charge mechanism as per the provisions and Notification referred above. 05. In view of all above deliberations, the questions can be answered thus – ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-38/2018-19/B-111 Mumbai, dt. 10.09.2018 For reasons as discussed in the body of the order, the questions are answered thus – Question :-1. Whether applicant is liable to pay IGST under section 5 (3) of IGST Act, 2017. Answer :- Answered in affirmative. Question :- 2. Whether Serial No.5 of Notification No. 4/2017 – Integrated Tax (Rate) is applicable on supply received by the applicant. Answer :- Answered in affirmative. – Case laws
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