In Re: M\/s. Sadashiv Anajee Shete
GST
2018 (12) TMI 895 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 688 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 23-10-2018
GST-ARA-32\/2018-19\/B-131
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
\nPROCEEDINGS
\n(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nThe present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Sadashiv Anajee Shete, the applicant, seeking an advance ruling in respect of the following questions.
\n1. Whether exemption under Sr. No. 13 of Notification No. 12\/2017 – Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?
\n2. Whether the Applicant is liable to get registered under section 22\/24 of CGST Act, 2017<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nt”) 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ST 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? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n what value GST liability needs to be discharged, whether on the commission which the Applicant receives from pundit Websites users or on the booking value received from website users? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t can choose as per their own option. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ter referred to as the Income tax Act) 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 of or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ” 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ng contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n bsite 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, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n lier and the recipient of the supply are not related and the price is the sole consideration for the supply. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n re 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 is received to the applicant out of total consideration received online from the service recipient. As per the provisions of law the commission is the supply of service and it would be the value on which he would be liable for GST and thus the Applicant would be liable to pay GST on the value of commission received from website users not for on total amount received. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Sadashiv Anajee SheteGST2018 (12) TMI 895 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 688 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AARDated:- 23-10-2018GST-ARA-32\/2018-19\/B-131 GSTSHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, … Continue reading “In Re: M\/s. Sadashiv Anajee Shete”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15550","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15550"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15550\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nApplicant hires various expert Pundits in order to provide services of religious ceremony like pujas, abhisheks etc.
\nApplicant has three types of business models which are given as below:
\nScenario-I
\nScenario-II
\nScenario-III
\nWebsite user will pay Rs. 2000 on online portal to applicant
\nWebsite user will pays Rs. 200 on Online portal to applicant
\nWebsite user will Pay Rs. 1800 on online portal to Applicant
\nApplicant will Pay Rs. 1800 to Pandit ji and retains Rs. 200
\nWebsite user will pay Rs. 1800 to Panditji
\nApplicant will Pay Rs. 1800 to Pandit ji
\n
\n
\nPanditji will pay Rs. 200 to Applicant
\nSTATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED –
\n1. Whether exemption under Sr. No. 13 of N<\/p>\n
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\nApplicant's Submission:
\nAs per above submissions, Applicant is not liable to pay GST. However, without prejudice to above submissions, even if we assume that Applicant is liable to pay GST then, GST liability needs to be discharged on the value of amount which the Applicant receives from Pundits\/ website users.
\n03. CONTENTION – AS PER THE CONCERNED OFFICER SUBMITTED-
\nThe submission, as reproduced verbatim, could be seen thus-
\nIn continuation to the same it is to submit that a copy of application filed by the applicant was called for on email and copy of the same is enclosed herewith for ready reference and further report called for is as under:
\n1. Whether exemption under S. No. 13 of Notification No. 12\/2017 Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?
\nThe exemption under the s<\/p>\n
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\nThe Applicant is liable to pay GST on the booking value received from website users.
\n04. HEARING
\nThe case was taken up for Preliminary hearing on dt. 04.07.2018 when Sh. Anuj A Chordiya, Cost Accountant along with Sh. Sadashiv A. Shete, Applicant appeared and requested for admission of application. The applicant was informed to reframe their application and give full facts with respect to each question that he intends to raise in his application latest by 12.07.2018. Jurisdictional Officer, Ms. N.R. Jhangiani, Superintendent, Central Tax appeared and made written submissions.
\nThe application was admitted and called for final hearing on 31.07.2018, Sh. Anuj A Chordiya, Cost Accountant appeared and made oral and written submissions. Jurisdictional Officer, Ms. N. R. Jhangiani Superintendent, Central <\/p>\n
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\n3. Applicant submits that his impugned services would fall under Sr. No. 13 of Notification No. 12\/2017 – Central Tax (Rate) dated 28th June 2017, since they are providing services by way of conducting religious ceremonies by hiring various Pundits \/ Brahmins for the welfare of the people through their own website.
\nHence, Applicant is not liable to pay GST on the said services. Therefore, applicant has raised the questions in his application for the clarity as under:-
\n1. Whether exemption under Sr. No. 13 of Notification No. 12\/2017 – Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?
\n2. Whether the Applicant is liable to get registered under section 22\/24 of CGST Act, 2017?
\n3. 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?
\n4. Considering<\/p>\n
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\nNil
\nNil
\n4.2 From the above notification, we find that the entry No.13 (heading-9963) covers the services by a person by way of “Conduct of any religious ceremony”. Thus it would cover services provided by a person who is conducting the religious ceremony
\nWe find that as per web star dictionary meaning of condust is,
\ntransitive verb-
\n1a: to direct or take part in the operation or management of
\nconduct an experiment,
\nconduct a business,
\nconduct an investigation.
\nb: to direct the performance of,
\nconduct an orchestra,
\nconduct an opera.
\nc: to lead from a position of command,
\nconduct a siege,
\nconduct a class.
\n4.3 In the present case applicant is facilitating in making available Pundits\/Brahmins for the conduct of puja<\/p>\n
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\nTherefore, the Applicant is not covered under the scope of exemption notification entry No .13.
\n4.3. 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.
\nHence 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.
\n5. Question -2, Whether the Applicant is liable to get registered under section 22\/24 of CGST Act, 2017?
\n5.1 We find from the above discussion, the applicant is providing th<\/p>\n
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\n(i) persons making any inter-State taxable supply;
\n(ii) casual taxable persons making taxable supply;
\n(iii) persons who are required to pay tax under reverse charge;
\n(iv) person who are required to pay tax under sub-section (5) of section 9;
\n(v) non-resident taxable persons making taxable supply;
\n(vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
\n(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
\n(viii) Input Service Distributor, whether or not separately registered under this Act;
\n(ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
\n(x<\/p>\n
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\n2(44) “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;
\n2(45) “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;
\n5.3. 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 therein, shall be required to be registered under this Act, the category No (x) is related to “every electronic commerce operator;”. Therefore, as per discussion above we are in opinion that, the applicant <\/p>\n
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\n(2) The value of supply shall include
\n (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;
\n (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
\n (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
\n (d) interest or late fee <\/p>\n
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\n05. In view of the extensive deliberations as held hereinabove, we pass an order as follows:
\nORDER
\n(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nNO.GST-ARA-32\/2018-19\/B-131
\nM<\/p>\n
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