Classification of Service — Authority for Advance Ruling — Online Information and Database Retrieval Services – The applicant having its registered office at USA, has a business division ‘Pearson VUE’ engaged in the provision of computer based test administration solutions to its clients like educational institutes, professional licensing organizations, etc. They conduct three types of tests. Each of these 3 tests are priced separately and candidate has to selects a test of their choice based on their need for certification and pays to the applicant for the same. The applicant sought an advance ruling (i) whether the service provided for type 2 test classifies as ‘Online Information and Database Retrieval Services’, and if it does not qualify, whether they are liable to pay IGST on the said supply to non-taxable online recipients in India; (ii)whether the service provided for type 3 test classifies as ‘Online Information and Database Retrieval Services’ and if it does not qualify, whether they are liable to pay IGST on the supply of said services to non-taxable online recipients in India.
Held that:- The Hon’ble Authority for Advance Ruling, held that the service provided for type 2 test classifies as OIDAR Services. Service provided for type 3 test does not classify as OIDAR Services and IGST is exempted by virtue of Sl. No. 10 of Notification No. 09/2017-IGST (Rate) dated 28.06.2017.—Ncs Pearson Inc., In Re… [2020] 24 TAXLOK.COM 032 (AAR-Karnataka)