Classification of service— The present appeal has been filed against the Advance Ruling order pronounced by the Maharashtra Authority for Advance Ruling.

In the present case, the Appellant is undertaking multiple taxable supplies of services such as construction of training workshop, providing training to apprentices, unskilled workers, students of various technical institutes, etc. All these activities, which are being supplied in conjunction with each other, can aptly be said to be naturally bundled where the principal supply will be training services being provided to the various candidates as mentioned above. The activities related to the construction of the training workshop can be construed as ancillary services to this principal supply, i.e., training service, provided to various candidates as the same are essential for the said principal supply.

The advance ruling authority has been held that the services under question will be classified under the Service Accounting Code 999792 of the Annexure to the Notification No 11/2017 - Central Tax (Rate) dated 28.06.2017, bearing the description 'Agreeing to do an act'.

The questions raised by the appellant before us is as under—

(a) Whether the impugned activity if covered under the meaning of 'supply of service', whether the same is covered as 'Zero Rated Supply' and qualifies as 'export of service' under the provisions of the IGST Act, 2017 and can be exported without payment of IGST?

This authority hold that the said supply of services will not be considered as export of services on account of the above findings that the place of supply of the services under question will not be outside India, and thereby, not complying with the clause (iii) of the Section 2(6) of the IGST Act, 2017, which stipulates five conditions or clauses that are required to be fulfilled for any supply of service to qualify for export of service.

Held that— The said supply of services will not be considered as export of services on account of the findings that the place of supply of the services under question, which are performance-based services in terms of Section 13 (3)(b) of the IGST Act, 2017 will be in India, and not outside India, and thereby, not complying with the clause (iii) of the Section 2(6) of the IGST Act, 2017. Thus, the Appeal filed by the Appellant is not maintainable and hence, hereby, dismissed.