Applicant has not entered into any contract with Government of Maldives for carrying out the construction work. Hence Government of Maldives is not the recipient of any service from the applicant. Both the applicant who is the supplier of service & NBCCL who is recipient of service are located in India and therefore the place of supply is to be determined under Section 12 of the IGST Act.
Authority for Advance Ruling — Place of Supply of service – The applicant engaged in construction services providing works contract services and secured contract from National Buildings Construction Corporation Limited (NBCCL) Delhi for constructing a building at Addu City, Maldives. The applicant understands that the recipient of construction service is the Government of Maldives as the institute is being constructed as part of assistance from Government of India to Government of Maldives. As per the Act, 2017, the supply of services are taxable only within the territory of India, therefore, the supply of this service outside India does not constitute taxable supply. The applicant sought advance ruling as to whether the construction of Institute of Security and Law Enforcement Studies at Addu City in Maldives, constructed for Government of Maldives under MOU between India and Maldives falls within the GST; who is the recipient of service in the instant case; what is the place of supply in respect of the works contract for setting up of setting up of the Institute of Security and Law Enforcement Studies at ADDU City in Maldives?
Held that:- The Hon’ble Authority for Advance Ruling held that the applicant who is the supplier of service & NBCCL who is recipient of service are located in India and therefore the place of supply is to be determined under Section 12 of the IGST Act. The proviso to Subsection (3) of Section 12 of IGST Act clearly mention that if the location of immovable property is intended to be located outside India, the place of supply shall be the location of the recipient. Therefore the supply by the applicant to the NBCCL is within the ambit of GST. NBCCL is recipient of service from the applicant.
Applicant has not entered into any contract with Government of Maldives for carrying out the construction work. Hence Government of Maldives is not the recipient of any service from the applicant. Both the applicant who is the supplier of service & NBCCL who is recipient of service are located in India and therefore the place of supply is to be determined under Section 12 of the IGST Act.
Authority for Advance Ruling — Place of Supply of service – The applicant engaged in construction services providing works contract services and secured contract from National Buildings Construction Corporation Limited (NBCCL) Delhi for constructing a building at Addu City, Maldives. The applicant understands that the recipient of construction service is the Government of Maldives as the institute is being constructed as part of assistance from Government of India to Government of Maldives. As per the Act, 2017, the supply of services are taxable only within the territory of India, therefore, the supply of this service outside India does not constitute taxable supply. The applicant sought advance ruling as to whether the construction of Institute of Security and Law Enforcement Studies at Addu City in Maldives, constructed for Government of Maldives under MOU between India and Maldives falls within the GST; who is the recipient of service in the instant case; what is the place of supply in respect of the works contract for setting up of setting up of the Institute of Security and Law Enforcement Studies at ADDU City in Maldives?
Held that:- The Hon’ble Authority for Advance Ruling held that the applicant who is the supplier of service & NBCCL who is recipient of service are located in India and therefore the place of supply is to be determined under Section 12 of the IGST Act. The proviso to Subsection (3) of Section 12 of IGST Act clearly mention that if the location of immovable property is intended to be located outside India, the place of supply shall be the location of the recipient. Therefore the supply by the applicant to the NBCCL is within the ambit of GST. NBCCL is recipient of service from the applicant.