The liaison activities being undertaken in line with the conditions specified by RBI amount to supply under Section 7(1)(c) of the CGST Act 2017.
Section 12 of IGST Act--- Place of supply of works contract service---- In the instant case, NRL (M/s Numaligarh Refinery Ltd) issued the work order to the applicant for installation of the hydrocarbon pipeline in Bangladesh.
The question is whether the supply of service to NRL for the above construction in Bangladesh is an export and exempt under the GST Act?
Held that--- The applicant is making a composite supply involving the transfer of property in goods in the course of the construction of immovable property, namely pipeline for transportation of hydrocarbon. As both the supplier and the recipient are located in India, the place of supply shall be India in terms of the proviso to section 12(3) of the IGST Act. The question of treating the applicant’s supply as export in terms of 2(6) of the IGST Act, therefore, does not arise.
The place of supply of the service should, therefore, be determined in terms of proviso to section 12(3)(a) of the IGST Act for carrying out the construction work of immovable property. It shall be in India, being the location of the recipient.
The applicant’s service will not, therefore, be the export of service within the meaning of section 2(6) of the IGST Act.