The financial assistance to be received by the Applicant is a “consideration for supply and their activity is covered under the meaning of supply of services and classified under SAC Heading 999792 which pertains to “Agreeing to do an Act”.
Classification of service- the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the financial assistance to be received by the Applicant is a consideration for supply and the activity is covered under the meaning of supply of services in terms of Section 7 of the Central Goods and Services Tax Act, 2017 / Maharashtra Goods and Services Tax Act, 2017?
2. If the above activity is not considered as 'supply of services' then whether the said activity is to be considered as “exempted supply' or 'non taxable supply and accordingly input tax credit is to be reversed in accordance with Section 17 of CGST Act, 2017 / MGST Act, 2017 read with Rule 42 of Central Goods and Services Tax Rules, 2017/ Maharashtra Goods and Services Tax Rules, 2017?
3. If the above activity is considered as supply of service, then whether the same is classifiable under SAC 9997 as other services nowhere else classified under Sr. no 35 of the Notification-11/2017- C.T. (Rate) dated 28th June 2017 / Sr. no 35 of the Notification-11/2017-S.T. (Rate) dated 29th June 2017 / sr. no 35 of the Notification 8/2017- I.T. (Rate) dated 28th June 2017?
4. Where the said activity if considered as supply of service, then whether the same is covered as “Zero Rated Supply and qualifies as “export of service under the provisions of Integrated Goods and Services Tax Act, 2017 and can be exported without payment of IGST?
Held that-
as per the agreement, applicant has consented/agreed to do some acts and as per clause 5 of Schedule II appended to GST Act, 'an agreement to do an act' will be considered as supply of services. Hence in the subject case, we hold that the applicant is rendering supply of services for which it is receiving consideration in the form of “financial assistance”
we are not taking up the second question raised by the applicant for discussion, since we hold that the subject activity is to be treated as supply of services and financial assistance received, is a consideration for such supply.
we find that the applicant has agreed to do acts under the impugned contract and therefore their supply is to be classified under SAC Heading 999792 which pertains to “Agreeing to do an Act”.
It is found from the submissions and as mentioned above that, the entire gamut of supply as per the agreement between the applicant and Prettl GMBH, will be performed in India and therefore we have no hesitation in holding that the place of supply, being event based in the subject case, is in India. The subject transaction does not satisfy the condition mentioned in clauses (iii) of Section 2(6) of the Integrated Goods and Services Tax Act, 2017 (IGST Act) and therefore the said transaction cannot be considered as Export of Services
The financial assistance to be received by the Applicant is a “consideration for supply and their activity is covered under the meaning of supply of services and classified under SAC Heading 999792 which pertains to “Agreeing to do an Act”.
Classification of service- the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the financial assistance to be received by the Applicant is a consideration for supply and the activity is covered under the meaning of supply of services in terms of Section 7 of the Central Goods and Services Tax Act, 2017 / Maharashtra Goods and Services Tax Act, 2017?
2. If the above activity is not considered as 'supply of services' then whether the said activity is to be considered as “exempted supply' or 'non taxable supply and accordingly input tax credit is to be reversed in accordance with Section 17 of CGST Act, 2017 / MGST Act, 2017 read with Rule 42 of Central Goods and Services Tax Rules, 2017/ Maharashtra Goods and Services Tax Rules, 2017?
3. If the above activity is considered as supply of service, then whether the same is classifiable under SAC 9997 as other services nowhere else classified under Sr. no 35 of the Notification-11/2017- C.T. (Rate) dated 28th June 2017 / Sr. no 35 of the Notification-11/2017-S.T. (Rate) dated 29th June 2017 / sr. no 35 of the Notification 8/2017- I.T. (Rate) dated 28th June 2017?
4. Where the said activity if considered as supply of service, then whether the same is covered as “Zero Rated Supply and qualifies as “export of service under the provisions of Integrated Goods and Services Tax Act, 2017 and can be exported without payment of IGST?
Held that-
as per the agreement, applicant has consented/agreed to do some acts and as per clause 5 of Schedule II appended to GST Act, 'an agreement to do an act' will be considered as supply of services. Hence in the subject case, we hold that the applicant is rendering supply of services for which it is receiving consideration in the form of “financial assistance”
we are not taking up the second question raised by the applicant for discussion, since we hold that the subject activity is to be treated as supply of services and financial assistance received, is a consideration for such supply.
we find that the applicant has agreed to do acts under the impugned contract and therefore their supply is to be classified under SAC Heading 999792 which pertains to “Agreeing to do an Act”.
It is found from the submissions and as mentioned above that, the entire gamut of supply as per the agreement between the applicant and Prettl GMBH, will be performed in India and therefore we have no hesitation in holding that the place of supply, being event based in the subject case, is in India. The subject transaction does not satisfy the condition mentioned in clauses (iii) of Section 2(6) of the Integrated Goods and Services Tax Act, 2017 (IGST Act) and therefore the said transaction cannot be considered as Export of Services