As the services provided by the applicant are in the form of R&D activity undertaken on the sample goods provided by the recipient i.e. the sample goods have to be made physically available by the recipient to the applicant in order to enable the applicant to provide the services. Therefore, the place of supply of service in the present case will be the location where the services are actually performed. The place of supply of services is therefore, Gujarat.
Authority for Advance Ruling —– Supply of services to the entities located outside India --– The applicant is engaged in the manufacture and supply of diamond cutting tools and other innovative tools required by the construction industry such as Diamond wheels, Diamond core bit drill, Grinding wheels, Grinding plate, Easy cut diamond segments, Flange Barrel and Frame Straw/Gang saw blades. The applicant sought advance ruling as to whether the services provided by the applicant to the entities located outside India is covered under Section 13(2) of the IGST Act, 2017; or whether the services provided by the applicant is liable to CGST and SGST or IGST or is eligible to be treated as a ‘zero rate supply’ under Section 16 of the IGST Act, 2017.
Held that:- The Hon’ble Authority for Advance Ruling held that the subject services do not merit to be covered under Section 13(2) of IGST Act. The subject services are liable to CGST and SGST.
As the services provided by the applicant are in the form of R&D activity undertaken on the sample goods provided by the recipient i.e. the sample goods have to be made physically available by the recipient to the applicant in order to enable the applicant to provide the services. Therefore, the place of supply of service in the present case will be the location where the services are actually performed. The place of supply of services is therefore, Gujarat.
Authority for Advance Ruling —– Supply of services to the entities located outside India --– The applicant is engaged in the manufacture and supply of diamond cutting tools and other innovative tools required by the construction industry such as Diamond wheels, Diamond core bit drill, Grinding wheels, Grinding plate, Easy cut diamond segments, Flange Barrel and Frame Straw/Gang saw blades. The applicant sought advance ruling as to whether the services provided by the applicant to the entities located outside India is covered under Section 13(2) of the IGST Act, 2017; or whether the services provided by the applicant is liable to CGST and SGST or IGST or is eligible to be treated as a ‘zero rate supply’ under Section 16 of the IGST Act, 2017.
Held that:- The Hon’ble Authority for Advance Ruling held that the subject services do not merit to be covered under Section 13(2) of IGST Act. The subject services are liable to CGST and SGST.