Financial assistance as consideration for services under SAC 999792 not 'export of services'

The financial assistance received by the Applicant is considered as consideration for the supply of services. The activity is classified under SAC 999792 as 'Agreeing to do an Act.' As the services will be performed in India, they do not qualify as 'export of services' and cannot be considered as 'Zero Rated Supply.' The question of whether the activity is exempted or non-taxable does not arise as it is deemed a supply of services.

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Issues Involved:
1. Whether the financial assistance received by the Applicant is a consideration for supply and the activity is covered under the meaning of supply of services as per Section 7 of the CGST Act, 2017 / MGST Act, 2017.
2. If not considered as 'supply of services,' whether the activity is to be considered as 'exempted supply' or 'non-taxable supply' and the corresponding input tax credit reversal in accordance with Section 17 of CGST Act, 2017 / MGST Act, 2017 read with Rule 42 of CGST Rules, 2017 / MGST Rules, 2017.
3. If considered as supply of service, whether the same is classifiable under SAC 9997 as other services nowhere else classified under Sr. No. 35 of the Notification-11/2017- C.T. (Rate) dated 28th June 2017 / Sr. No. 35 of the Notification-11/2017-S.T. (Rate) dated 29th June 2017 / Sr. No. 35 of the Notification 8/2017- I.T. (Rate) dated 28th June 2017.
4. If considered as supply of service, whether the same is covered as 'Zero Rated Supply' and qualifies as 'export of service' under the provisions of IGST Act, 2017 and can be exported without payment of IGST.

Issue-wise Detailed Analysis:

1. Whether the financial assistance received by the Applicant is a consideration for supply and the activity is covered under the meaning of supply of services as per Section 7 of the CGST Act, 2017 / MGST Act, 2017:
The applicant contended that the financial assistance received is not a consideration for supply of any goods or services. However, the Authority observed that the activities undertaken by the applicant are in pursuance of a service agreement with Prettl GmbH, and the financial assistance is provided for these services. The definition of 'supply' under Section 7 of the CGST Act includes activities like agreeing to do an act, which applies here. Therefore, the financial assistance is considered as consideration for supply of services, and the activity is covered under the meaning of supply of services.

2. If not considered as 'supply of services,' whether the activity is to be considered as 'exempted supply' or 'non-taxable supply' and the corresponding input tax credit reversal in accordance with Section 17 of CGST Act, 2017 / MGST Act, 2017 read with Rule 42 of CGST Rules, 2017 / MGST Rules, 2017:
Since the activity is considered as supply of services, this question does not arise.

3. If considered as supply of service, whether the same is classifiable under SAC 9997 as other services nowhere else classified under Sr. No. 35 of the Notification-11/2017- C.T. (Rate) dated 28th June 2017 / Sr. No. 35 of the Notification-11/2017-S.T. (Rate) dated 29th June 2017 / Sr. No. 35 of the Notification 8/2017- I.T. (Rate) dated 28th June 2017:
The applicant suggested that the services might fall under SAC 9997 as other services nowhere else classified. The Authority observed that the applicant is required to perform a gamut of services under the contract, which are agreed to be undertaken as per the requirements of Prettl GmbH. The services are classified under SAC Heading 999792, which pertains to 'Agreeing to do an Act.'

4. If considered as supply of service, whether the same is covered as 'Zero Rated Supply' and qualifies as 'export of service' under the provisions of IGST Act, 2017 and can be exported without payment of IGST:
To qualify as 'export of services,' the place of supply must be outside India. The Authority noted that the entire gamut of services under the agreement will be performed in India. As per Section 13(5) of the IGST Act, the place of supply for services related to educational events is where the event is held, which in this case is India. Therefore, the transaction does not qualify as 'export of services,' and hence, it does not qualify as 'Zero Rated Supply.'

Order:
1. The financial assistance received by the Applicant is considered as consideration for supply of services.
2. The question regarding exempted or non-taxable supply does not arise as the activity is considered a supply of services.
3. The supply of service is classifiable under SAC 999792.
4. The activity does not qualify as 'Zero Rated Supply' and cannot be exported without payment of IGST.

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