AAR rules services as mixed supply, GST rate set at 18%.

The Authority for Advance Ruling (AAR) determined that the services provided by the applicant, including consultancy and provision of duty credit scrips, are not composite but constitute mixed supply. The AAR concluded that the services could be provided independently of each other. As per the ruling, the applicable GST rate for the services provided is 18%, as it is the highest rate applicable to any of the supplies within the mixed supply.

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Issues Involved:
1. Determination of the applicable rate of GST for the services provided by the applicant.
2. Whether the services provided by the applicant are composite in nature or constitute mixed supply.

Issue-wise Detailed Analysis:

1. Determination of the applicable rate of GST for the services provided by the applicant:
The applicant, engaged in consultancy services related to Import-Export compliances, sought an advance ruling on the applicable GST rate for their services provided for a whole sum price. The applicant's services include guidance on customs clearance, obtaining and utilizing transferable incentives, document preparation, and other related services. The applicant charges a lump sum fee that includes consultancy charges and the price for duty credit/transferable incentives. The consultancy charges are taxable under GST at the rate of 18% under Service Accounting Code 9982. The duty credit scrips themselves are exempt from GST as per Notification No. 35/2017-Central Tax (Rate) dated 13.10.2017. The applicant sought clarification on whether their services, which include the provision of duty credit scrips, are composite in nature and the applicable GST rate for the consideration received.

2. Whether the services provided by the applicant are composite in nature or constitute mixed supply:
The applicant argued that their services, which include consultancy and the provision of duty credit scrips, are composite in nature, with the principal supply being the consultancy services. However, the Authority for Advance Ruling (AAR) found that the services provided by the applicant are not naturally bundled and do not constitute a composite supply. The AAR observed that the duty credit scrips could be supplied independently of the consultancy services. The services provided, such as data management, consultancy, and legal services, can be performed without the supply of duty credit scrips. Therefore, the AAR concluded that the services provided by the applicant are mixed supplies, consisting of several individual supplies made in conjunction with each other at a single price.

Judgment:
The AAR ruled that the supplies made by the applicant, as enumerated in the service order of M/s. Sitaraman Shipping Service, are 'Mixed supply.' As per Section 8 of the CGST Act and TNGST Act, the tax liability on a mixed supply is determined based on the highest rate applicable to any of the supplies within the mixed supply. In this case, the highest rate applicable is 18% GST (9% CGST and 9% SGST) for the various services supplied by the applicant. Therefore, the applicable rate of GST for the consideration received from the customers for the said services provided is 18%.

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