Goa AAR: Technical Testing Services Not Zero-Rated under IGST Act

The Authority for Advance Ruling in Goa held that the technical testing services provided by the applicant did not qualify as zero-rated supply under the IGST Act, 2017. As the services were carried out in Goa, India, the place of supply was considered to be in India, making the applicant liable to pay CGST and SGST on the supply. The ruling emphasized that the conditions for export of service were not met, leading to the decision that the services did not qualify for zero-rated treatment.

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Issues:
1. Whether the technical testing services carried out by the applicant can be treated as 'zero-rated supply'Rs.
2. If the answer to the first question is negative, is the applicant liable to pay IGST on the said supplyRs.

Analysis:

Issue 1:
The applicant sought an Advance Ruling to determine if the technical testing services they provide can be considered as 'zero-rated supply.' The definition of export of service under Section 2(6) of the IGST Act, 2017 was crucial in this analysis. To qualify as an export of service, certain conditions needed to be met, including the location of the supplier and recipient of service, place of supply, and payment in convertible foreign exchange. The ruling highlighted that while some conditions were fulfilled, the place of supply of service, determined under Section 13 of the IGST Act, was crucial. As the technical testing was carried out in Goa, India, the place of supply was considered to be in India, leading to the conclusion that the service did not meet the criteria for export of service under the IGST Act, 2017. The ruling also clarified that the exclusionary clause under Section 13(3)(a) did not apply in this case, further supporting the decision.

Issue 2:
In response to the second issue raised by the applicant, the ruling stated that since the supplier of service and the place of supply were both in Goa, India, the applicant was deemed liable to pay CGST and SGST on the supply of service. This decision was based on the provisions of the CGST and SGST Acts, as well as the specific circumstances of the case where the services were provided and consumed within India.

In conclusion, the Authority for Advance Ruling, Goa, determined that the technical testing services provided by the applicant did not qualify as zero-rated supply under the IGST Act, 2017. Consequently, the applicant was held liable to pay CGST and SGST on the said supply of service due to the location of the supplier and the place of supply being within India.

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