Appellate Authority affirms tax liability for local services under CGST/TNGST Act.

The Appellate Authority upheld the decision that the services provided by the appellant to Doyen Systems are considered local services under the CGST/TNGST Act. The appellant was deemed liable to pay the relevant tax on the supply of services, as the recipient of the services was identified as Doyen Systems. The appeal was dismissed, affirming the Original Authority's ruling without alteration.

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Issues Involved:
1. Whether the services provided by the applicant shall be treated as local services or export of services.
2. Whether the applicant is liable to pay GST on such services provided to the US Client directly.
3. Whether the benefit of zero-rated supply can be availed by him for his services.
4. Whether he is eligible for a refund of taxes already paid in the past if the refund is within the time limit provided under the GST Act.

Issue-wise Detailed Analysis:

1. Whether the services provided by the applicant shall be treated as local services or export of services:
The appellant, engaged in IT software consulting services, entered into a contract with Doyen Systems to provide support services to a US client. The appellant argued that the services provided should be considered as export of services since they were ultimately consumed by the foreign client. The Original Authority ruled that the services provided to Doyen Systems are local services under CGST/TNGST Act, and the appellant is liable to pay relevant tax on such supply. The Appellate Authority upheld this ruling, stating that the recipient of the appellant's services is Doyen Systems, as they are the entity liable to pay the consideration.

2. Whether the applicant is liable to pay GST on such services provided to the US Client directly:
The appellant contended that since the services were consumed by the US client, they should not be subject to local GST. However, the Original Authority determined that the contract and payment obligations were with Doyen Systems, an Indian entity, making the services taxable under local GST laws. The Appellate Authority agreed, emphasizing that the appellant's contractual obligation was to Doyen Systems, which paid the consideration, making them the recipient of the services.

3. Whether the benefit of zero-rated supply can be availed by him for his services:
The appellant sought to avail the benefit of zero-rated supply for the services provided to the US client. The Original Authority did not address this question, stating it was outside their ambit as per Section 97(2) of the Act. The Appellate Authority did not find grounds to reconsider this aspect, as the primary determination was that the services were local supplies to Doyen Systems, not exports.

4. Whether he is eligible for a refund of taxes already paid in the past if the refund is within the time limit provided under the GST Act:
Similar to the zero-rated supply issue, the Original Authority did not address the refund eligibility question, citing it was beyond their jurisdiction. The Appellate Authority maintained this stance, focusing on the primary issue of whether the services were local or export, and concluded that since the services were local, the question of refund under the context of export did not arise.

Conclusion:
The Appellate Authority upheld the Original Authority's decision, concluding that the services provided by the appellant to Doyen Systems are local services under the CGST/TNGST Act, and the appellant is liable to pay the relevant tax on such supply. The appeal was disposed of accordingly, with no changes to the Original Authority's ruling.

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