TaxTMI 
TaxTMI 
2019 (10) TMI 872
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....ersons in India in view of compulsory or mandatory registration and return filing requirement as per section 24(xi) of CGST Act, Rule 64 of CGST Rules and GST Flyer issued by Directorate General of Taxpayer Services, CBIC? b) If response to the above is 'No', whether the applicant is required to charge GST on supply of OIDAR services to Government, Local Authority, Governmental Authority and an individual irrespective of their GST registration status? c) Whether the purpose for which OIDAR services are to be used by a recipient in India shall also determine whether GST has to be charged by the applicant or not irrespective of the category of recipient? In other words, if any service recipient is using applicant's OIDAR services for commerce, industry or any other business or profession in India, the applicant will not be required to charge GST. d) If response to C above is in affirmative, how should applicant determine that its OIDAR services shall be used by the recipient for any purpose other than commerce, industry or any other business or profession, located in India? As the majority of content in books, journals, etc. supplied by the applicant is use....
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....and also a large number of individuals. The ultimate end-user of applicant's books and journals inter-alia are scientists, researchers, academicians, professionals and students. Scientific documents are available in several disciplines including the following:- a. Biomedicine b. Business and management c. Chemistry d. Computer Science e. Earth Sciences f. Economics g. Law, etc. d. The categories of customers for applicant's products in India includes:- a. State / Central Government departments b. State / Central Governmental Universities / Educational Institutions eg. National Law School, IIT, IIM etc. c. Not for Profit Organisations including Government or Private Hospitals/ educational institutions and colleges d. Corporate Customers including Pharmaceutical Companies e. Individual Customers, being researchers or professionals like doctors, etc. 4. Regarding the legal provisions applicable to their case, the applicant states as under: 4.1 Section 14(1) of the IGST Act, 2017 provides that "On supply of online information and database access or retriev....
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....rvices from a place outside India is required to file returns only when services are supplied to a person other than a registered person (i.e. an unregistered person) as per Rule 64 of the CGST Rules, 2017. 4.6 The applicant is providing e-books / journals through internet to various categories of customers including State/ Central Government, State/ Central Governmental Authorities, individual consultants, and not for profit organisations including educational institutions, hospitals, etc. The applicant wants to confirm its understanding for it liability to do GST Compliance on such supplies in various scenarios. 5. Regarding the facts that have bearing on the question raised, the applicant made the following submission:- a. The applicant states that they are in the business of supplying scientific content comprising contemporary and historical research from scholars in various disciplines of science, technology, medicine, social sciences and humanities. Such content is supplied by means of books, journals, reference works, protocols and databases. Supply of this content through electronic means to customers in India is the subject matter of this application. ....
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.... regular registration) 7.2 The applicant states that from the combined reading of GST provisions, any registered person under GST (whether such person is government, local authority, governmental authority, individual or any other person) would not qualify to be NTOR and the applicant would not be required to charge GST and therefore undertake other applicable GST compliances. OIDAR services rendered by the applicant to any registered person under GST would be subject to reverse charge mechanism instead. In case if Government, Local Authority, Governmental Authority, individual or any other person is not a registered person under GST, but receiving such services for commerce, industry or any other business or profession, the GST liability is NOT on the supplier of services, i.e. the applicant. 7.3 The premise of the aforesaid interpretation is that 'not registered' under the definition of NTOR is applicable to all categories mentioned in the definition. However, on reading the definition of NTOR, the use of the phrase '. . . any other person not registered . . ." may be meant to cover "unregistered persons" who are other than government, local authority, governmental authorit....
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.... ruling is sought by the applicant and relevant facts. At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.1 The transaction of the applicant is examined and found that the applicant is supplying OIDAR services to customers in India. It is not disputed that the supplies are OIDAR services. 8.2 Regarding the definition of "non-taxable online recipient" as defined in Section 2(16) of the IGST Act, 2017, it is very clear that to qualify as a "non-taxable online recipient" the person must,- (a) be any government, local authority, governmental authority, an individual or any other person not registered, and (b) be located in the taxable territory, must receive OIDAR services in relation to any purpose other than commerce, industry or any other business or profession. Hence it is clear that a government, local authority, governmental authority, an individual or any other person, who is not registe....