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

The project for the Establishment of Center for Occupational Skills Acquisition within the Global Skills Park in Bhopal, Madhya Pradesh was given to Directorate of Skill Development, Department of Technical Education, Skill Development & Employment (DoSD), Government of Madhya Pradesh.

The said Project is to assist the Government of Madhya Pradesh (GOMP) in transforming its technical and vocational education and training (TVET) system to create a skilled workforce that meets the evolving development needs of the State.

ITE Education Services Pte. Ltd, a Singapore based Consultancy Company as per agreement with Government of Madhya Pradesh is to provide Consulting Services to the Directorate of Skill Development for the said Project. 

QUESTION RAISED BEFORE AUTHORITY FOR ADVANCE RULING (AAR)

The Appellant desired to know, whether the services received by it from a provider of service located in a non-taxable territory would attract the provision of sec 5(3) read along with notification No. 10/2017 IGST(Rate) dated 28.06.2017. In other words, whether Applicant is liable to pay tax under reverse charge mechanism on the transaction mentioned above?

RULING PRONOUNCED BY AAR

 The Applicant shall be liable to pay IGST on import of Service under Reverse Charge Mechanism in terms of Notification No.10/2017-IT(R).

QUESTION RAISED BEFORE THE APPELLATE AUTHOURITY FOR ADVANCE RULING (AAAR)

The Appellant desired to know, whether the services received by it from a provider of service located in a nan-taxable territory would attract the provision of sec 5(3) read along with notification No. 10/2017 IGST(Rate) dated 28.06.2017. In other words, whether Appellant is liable to pay tax under reverse charge mechanism on the transaction mentioned above.

Held that— The aforementioned pure services received by appellant from ITEES being mentioned at entry XVIII of Eleventh Schedule of Constitution of India qualify for reverse charge under sub-section (3) of section 5 of IGST Act, 2017 read with notification 10/2017 IGST (Rate) dated 28.06.2017 and the appellant, the recipient of services, is exempt from GST as per entry 3 of notification 9/2017 IGST (Rate) dated 28.06.2017.