TaxTMI 
TaxTMI 
2019 (7) TMI 847
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.... the CGST Act / RGST Act would be mentioned as being under the "GST Act". • The issue raised by M/s. All Rajasthan Corrugated Board and Box Manufacturers Association, C-49, Industrial Estate, Baais Godown, Jaipur, Rajasthan 302006 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97 (2) (a)(b)(d) given as under : a. Classification of any goods or services or both; b. Applicability of a notification issued under the provisions of the act; d. Admissibility of input tax credit of tax paid or deemed to have been paid; • Further, the applicant being a registered person (GSTIN is 08AAHAA0728P1ZH as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: a. The applicant is an association having its office in Jaipur (Rajasthan) duly registered under the provisions of the Central Goods and Services Tax Act 2017 read with the provision....
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.... from several indicators some of which are listed below - • The perception of the consumer or the service receiver. • Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines. • If the nature of services is such that one of the services is the main service and the other services combined with such service are in the nature of incidental or ancillary services which help in better enjoyment of a main service. • Other illustrative indicators, not determinative but indicative of bundling of services in ordinary course of business are - a. There is a single price or the customer pays the same amount, no matter how much of the package they actually receive or use. b. The elements are normally advertised as a package. c. The different elements are not available separately. d. The different elements are integral to one overall supply if one or more is removed, the nature of the supply would be affected. That above indicators being applied in the given c....
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....cant understands that the participation fee for exhibition is charged from the exhibitors against the service of organizing trade show. Hence such service shall be classified under HSN 998596 i.e., Events, exhibitions, conventions and trade shows organisation and assistance services and the applicant shall be liable to pay tax at the rate of 18%. m. Those categories of brand promotion packages will be offered in the following ways: • Branding on Stage Backdrop, Standy, Taxi, E-Rickshaw, Chair Head, Rest Cover, Itineary, Bottle Wrapper, Logo in media Stationery • Display of their brand in a souvenir for the event (space will be allotted in the souvenier) • Presentation (for a specific time slot) and DVD Display That the term 'brand promotion' in not defined under GST but reference can be made to service tax regime where service of brand promotion was a declared service and it was covered under Section 65(105) (zzzzq). Brand promotion packages offered by the applicant should be classified under HSN 998397 having description 'Sponsorship services and brand promotion services' taxable at the rate of 18%. 356 Group 99839 ....
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....upply. p. In relation to rent-a-cab service, the provisions mentioned in Section 17(5) provides for eligibility of input tax credit. Since the applicant will use such inward supply of rent-a-cab service as an element of outward supplies of event organization and brand promotion which are taxable composite supplies, it is understood that ITC of tax paid on rent-a-cab service shall be available to the applicant. IV. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT I. What shall be the nature of service and classification in accordance with Notification No. 11/2017- CT(R) dated 28.06.17 read with annexure attached to it in relation the following services: a) Service provided by the applicant to the delegates. b) Service provided by the applicant to the exhibitors. II. In relation to the brand promotion packages offered by the applicant in the course of the event, a) What shall be the nature of service and classification in accordance with Notification No. 11/2017-CT(R) dated 28.06.17 read with annexure attached to it? b) Whether the applicant is liable to pay tax on services provided to the brand promoters or the liability to pay tax on s....
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....o be received against registration fees thereafter. The interested vendors will be offered to showcase and exhibit their products against certain participation charges. Further, various brand promotion packages will also be offered to local, national & international vendors in the course of the event. c. That the following facilities will be offered to the delegates in the event at an all- inclusive registration fees: • Technical Seminars • Access to exhibition • Hotel Room Accommodation • Cultural programs, lunch & dinner • Airport Pick Up & Drop Since the above mentioned facilities or services are given in a package thus a kind of bundled services are being offered to the delegates. d. The concept of 'composite supply' under GST Act, 2017 is as follows: (30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; • As per the d....
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....upply of that particular supply which attracts the highest rate of tax. In the instant case the provision (a) of Section 8 of GST Act, 2017 as mentioned above is applicable. Hence, the composite supply provided by the applicant to the delegates shall be treated as a supply of service of organization of conference. h. The classification of services under GST Act, 2017 is provided under Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, relevant extracts of the Annexure and Notification is as under: Annexure 444 Group 99859 Other Support Services 445 998591 Credit reporting and rating services 446 998592 Collection agency services 447 998593 Telephone-based support services 448 998594 Combined office administrative services 449 998595 Specialised office support services such as duplicating services, mailing services, document preparation and the like 998596 Events, exhibitions, conventions and trade shows organisation and assistance services. 451 998597 Landscape care and maintenance services ....
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....interested persons will get to promote and advertise their product brand in the promotional trade event. The branding facility will be available in the following ways: • Branding on Stage Backdrop, Standy, Taxi, E-Rickshaw, Chair Head, Rest Cover, Itinerary, Bottle Wrapper, Logo in media, Stationery etc. • Display of their brand in a souvenir for the event (space will be allotted in the souvenir) • Presentation (for a specific time slot) and DVD Display. k. The term 'brand promotion' in not defined under GST Act, 2017 but reference can be made to Service Tax regime where service of brand promotion was a declared service and it was covered under Section 65(105) (zzzzq) as: "Taxable service" means any service provided or to be provided to any person, by any other person, through a business entity or otherwise, under a contract for promotion or marketing of a brand of goods, service event or endorsement of name, including a trade name, logo or house mark of a business entity by appearing in advertisement and promotional event or carrying out any promotional activity for such goods, service or event. Explanation- For the purpo....
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....omotion packages offered by the applicant to partnership firms and body corporate do not fall under the category of sponsorship but purely branding. The applicant is liable to pay tax on such services under normal charge only (not under reverse charge basis). The service of brand promotion is classifiable under the combined entry HSN 998397 having description 'Sponsorship services and brand promotion services' taxable at the rate of 18% GST (SGST 9%+ CGST 9%). and the applicant shall be liable to pay tax on such services under normal charge only. n. The applicant will procure various supplies during the course of event including the following: I. Services by hotel including accommodation, conference venue and food & beverages II. Supply of food & beverages by outside caterers. III. Services provided by event manager like pickup & drop, exhibition stall setup, tenting, etc. Further, the hotel will be providing a bouquet of Services to the applicant in the instant case which are as under: • Accommodation for the delegates • Availability of conference hall • Food & beverages The above bundle of services shall q....
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.... section 18, input tax credit shall not be available in respect of the following, namely: - (b) the following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause(a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods and services or both shall be available where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; Since the applicant will use such inward supply of rent-a-cab service as an element of outward supplies of event organization and brand promotion which are taxable composite supplies, therefore ITC of tax paid on rent-a-cab service shall be available to the applicant. 6. In view of the foregoing, we rule as follows:- RULING I. The Service provided by the ap....