Advance Ruling— In the instant case, the applicant is providing Covid- 19 Testing facility for all the passengers travelling by air, whether domestic or international.

The applicant has sought advance ruling in respect of the following question:

i. Whether Goods and Service Tax (“GST”) will be levied on Revenue Sharing invoices raised by one party on to another party wherein the outward supply of services is exempt in nature.

The applicant has stated that they are providing services for food testing, pharmaceuticals testing, herbal testing, Covid testing etc. for domestic as well as foreign clients. Being a service provider, they are also registered under the Goods and Services Tax Act, 2017 in various States in India.

The applicant states that they have entered into an agreement with BIAL for operation of Covid Testing Facility on 2nd September 2021. As per this agreement, the BIAL will get certain percentage of revenue based upon the turnover of the applicant.

The applicant states that BIAL raises tax invoices for both rent and revenue sharing separately on them. BIAL raises the tax invoices as per mutually agreed payment terms between BIAL and the applicant and charges GST @ 18% on the value of its revenue share. The tax invoices are being generated by BIAL bearing SAC 996761 i.e., Airport Operation Services. The applicant has also submitted the tax invoices raised (SAC 998592) by them towards each customer for conducting COVID (RTPCR) test.

The applicant states that BIAL raises tax invoices for revenue sharing on them. As per the definition of 'Supplier' as per section 2(105) mentioned supra and as per Section 31 which talks about tax invoice, BIAL becomes the supplier since, BIAL is issuing tax invoices to the applicant.

Held that— In the instant case, we observe that Auriga Research Private Limited, who have filed the application, is not a supplier. Thus the instant application is not admissible and liable for rejection in terms of Section 98(2) of the CGST Act 2017.