2023 (6) TMI 530 - AAR - GST

AAR rejects application for advance ruling on place of supply for antenna installation services across multiple states under Section 97(2)

In Re: M/s. Comsat Systems Private Limited,

The AAR Telangana dismissed an application seeking advance ruling on place of supply determination for installation, testing and commissioning services of ... Scope of Advance Ruling application - Determination of place of supply - supply of services such as installation, testing and commissioning of antennas installed in various other States, other than the home State - HELD THAT:- Applicant are installing the antenna supplied to M/s. Bharat Electronics Limited, Bangalore. This amounts to rendering of service which includes installation, testing and commissioning whose place of supply has to be determined under provisions of the IGST Act, 2017. The jurisdiction of the AAR with respect to the scope of Advance Ruling is enumerated under Section 97 of the CGST Act, 2017 and the sub section (2) contains the exhaustive list of subjects on which a ruling can be sought. If the clarifications sought in the application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules does not fall within the ambit of the list of issues as detailed in provisions of section 97(2) of CGST/TGST Act’ 2017, it makes the application liable to be rejected. The list in Section 97(2) of the CGST/TGST Act’ 2017 does not have any reference to determination of “Place of Supply.” Since the question raised by the Taxpayer pertains to determination of place of supply of the services rendered by the taxpayer, therefore the application is liable to be rejected as the queries raised do not fall within the ambit of provisions of section 97(2) of CGST/TGST Act’ 2017. Application dismissed. Issues Involved:The issues involved in this case are related to the determination of the liability to raise an IGST invoice for the supply of services such as installation, testing, and commissioning of antennas installed in other states, and whether the applicant can obtain an Advance Ruling regarding this liability.Issue 1: Liability to Raise IGST InvoiceBrief Facts:The applicant, engaged in manufacturing satellite communication antenna systems, is required to install antennas in various states of India, including Andaman and Nicobar Islands. The contractee, M/s. Bharat Electronics Ltd., Bangalore, is insisting on separate temporary GST numbers for each location/state. The applicant seeks an Advance Ruling on their liability to raise an IGST invoice for these services.Opinion and Findings:The applicant's application falls within the ambit of Section 97 of the GST Act. The applicant has not submitted additional material or attended a personal hearing. The installation, testing, and commissioning activities are carried out by skilled technicians and engineers at various locations/states in India. The determination of the place of supply under the IGST Act is crucial in this scenario. However, the application does not align with the exhaustive list of subjects for seeking a ruling under Section 97(2) of the CGST/TGST Act, as it does not cover the determination of the place of supply. Therefore, the application is rejected.Issue 2: Scope of Advance RulingBrief Facts:The applicant is seeking an Advance Ruling on whether they can raise an IGST invoice for services provided in different states, as directed by the contractee. The applicant manufactures a wide range of antenna systems and is required to install these systems at various locations in India.Opinion and Findings:The application does not meet the criteria specified under Section 97(2) of the CGST/TGST Act for seeking an Advance Ruling. Despite the detailed information provided by the applicant regarding their operations and the specific question raised, the issue of determining the place of supply is not covered under the listed subjects. As a result, the application does not fall within the scope of the Advance Ruling authority, leading to its rejection.In conclusion, the Authority for Advance Ruling, Telangana rejected the application as the queries raised by the applicant regarding the liability to raise an IGST invoice for services provided in different states did not align with the provisions of Section 97(2) of the CGST/TGST Act. The application did not cover the determination of the place of supply, which is essential in such cases.