Liaison activities between India and Dubai offices constitute mixed supply of support services attracting 18% GST under Section 2(74)

AAAR Maharashtra held that liaison activities between India office and Dubai office constitute mixed supply of support services under Section 2(74) CGST Act, 2017. The activities including organizing seminars, conferences, and events for business promotion attract 18% GST as support services. Both offices are separate legal persons under GST law, making cost-to-cost reimbursements taxable consideration. Place of supply is India where events are conducted. The appellant must obtain GST registration and pay IGST on amounts received from Dubai head office. Appeal dismissed as not maintainable.

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Issues Involved:
1. Whether the activities undertaken by the Appellant can be construed as those of an "intermediary."
2. Whether the activities undertaken by the Appellant can be construed as "Supply" under Section 7 of the CGST Act, 2017.
3. Whether the place of supply of the impugned activities is within the taxable territory.

Detailed Analysis:

1. Intermediary Status:
The definition of "intermediary" under Section 2(13) of the IGST Act, 2017 includes a broker, agent, or any person who arranges or facilitates the supply of goods or services between two or more persons but does not include a person who supplies such goods or services on his own account. The Appellant was found to act as a link between businesses in India and Dubai by sharing details and making introductions but not arranging or facilitating the actual supply of goods or services. Therefore, the Appellant was not considered an "intermediary."

2. Supply Under CGST Act:
The activities of the Appellant were considered "services" under Section 2(102) of the CGST Act, 2017. The Appellant undertook various activities such as making introductions, organizing events, and sharing information, which were grouped under "support services" with Service Accounting Codes 998596 and 998599. These activities were deemed "mixed supply" as per Section 2(74) of the CGST Act, 2017, attracting GST at the rate of 18%. The Appellant's activities were considered "Supply" under Section 7(1)(a) of the CGST Act, 2017, as they were made for consideration in the course of business.

3. Place of Supply:
For event-based services, the place of supply is where the event is held, which in this case is India, making it a taxable territory. For other support services, the place of supply is determined by the location of the recipient, which is outside India, making it a non-taxable territory. The Appellant was found to be providing mixed supply, with the predominant supply being event-based support services, thus making the entire supply taxable at 18%.

Conclusion:
The Appellant is required to obtain GST registration and pay IGST on the entire amount received from their Dubai Head Office. The activities performed by the Appellant were held to be within the ambit of "Supply" under Section 7(1)(a) of the CGST Act, 2017, and the Appellant's appeal was dismissed.

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