The activities carried out in India by the Applicant would constitute a supply as “Intermediary services” instead of ‘export of services classifiable under SAC 998599 and consequently, are exigible to GST at the rate of 18%
Authority for Advance Ruling — Intermediary service – The applicant engaged in providing engineering design and other technical advisory services which include marketing support, customer support services, flight maintenance training, flight operations supports, flight pilot training, etc. Also provide maintenance, repairs and overhaul services, agency services, renting of assets and trading of spares and parts of Helicopter. The applicant is operating as a subsidiary of Airbus Invest SAS, France Molding Company’), and its ultimate holding company is Airbus SE, Netherland. The applicant has sought an advance ruling as to whether the activities carried out in India by the Applicant would constitute a supply of “Other support services” falling under HSN code 9985 or as “Intermediary service” classifiable under HSN code 9961/9962 or any other classification of services as specified under various Tariff entries of rate notification issued under Goods and Services Tax law. The authority observed that the services of the applicant are covered under intermediary services, hence the place of supply is India in terms of Section 13(8) of the IGST Act 2017.
Held that:- The Hon’ble Authority for Advance Ruling held that the activities carried out in India by the Applicant would constitute a supply as “Intermediary services” classifiable under SAC 998599 and the activities of the applicant are exigible to GST at the rate of 18% in terms of clause (iii) of entry no. 23 of Notification No. 11/2017-Central Tax (R) dated 28.06.2017.