2019 (1) TMI 1673 - AAR - GST

Advance Ruling Denied on Place of Supply Jurisdiction

The applicant sought an Advance Ruling on the 'place of supply' of liaison services provided to overseas manufacturers. The Authority found that the ... Scope of Advance Ruling application - Section 97(2) of CGST Act, 2017 - Place of supply of services - clarification sought on “place of supply” of the liaison services extended by him to the overseas manufacturers without any Indian subsidiary / India Liaison office - HELD THAT:- The applicant, sought Advance Ruling in “Place of Supply “issue, which is outside the purview of the Advance Ruling Authority as per Section 97(2) of CGST Act, 2017. The application is not admitted under Sec 98 (2) of CGST Act, 2017 and APGST Act, 2017. Issues Involved:- Applicant sought Advance Ruling on the 'place of supply' of liaison services extended to overseas manufacturers without any Indian subsidiary/India Liaison office.Analysis:1. Applicant's Interpretation of Law and Facts:The applicant requested clarification on the 'place of supply' of liaison services provided to overseas manufacturers. The applicant referred to legal provisions, including the definition of 'intermediary services' under the IGST Act and the definition of intermediaries under the Information Technology Act, 2000. The applicant argued that their services were solely for manufacturers in exchange for a commission, not for end clients. They contended that they represented only the manufacturer's interests and questioned the applicability of the term 'intermediary services' to their activities.2. Record of Personal Hearing:The Director of the applicant company appeared for a personal hearing and reiterated the submissions made in the application.3. Discussion and Findings:The Authority reviewed the case for admission under Section 98(2) of the CGST Act, 2017. The Act specifies the questions for which an advance ruling can be sought, including classification of goods/services, applicability of notifications, determination of time/value of supply, input tax credit admissibility, liability to pay tax, registration requirement, and whether certain actions amount to a supply of goods/services. However, the applicant sought a ruling on the 'place of supply,' which falls outside the Authority's jurisdiction as per Section 97(2) of the CGST Act, 2017. Consequently, the application was not admitted under Section 98(2) of the CGST Act, 2017, and the APGST Act, 2017.