TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 875
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....ervice Tax Act, 2017, the Rules framed thereunder and Notifications issued from time to time. 2. Where the material for testing and analysis is sent from outside India to KBRPL and on which KBRPL carries out testing and analysis and issues certificate based thereon to the person not residing in India, whether it can be said that there is no supply by KBRPL involved in terms of Section 7 Central Goods and Services Tax Act, 2017 read with Karnataka Goods and Service Tax Act, 2017, the Rules framed thereunder and Notifications issued from time to time. 3. Where the customer providing the material is not residing in India and sends material from outside India to KBRPL in India, for carrying out testing and analysis and issuance of certificate thereafter, such an activity if held to be supply in terms of Section 7 of the Central Goods and Services Tax Act, 2017 read with Karnataka Goods and Service Tax Act, 2017, the Rules framed thereunder and Notifications issued from time to time, and where payments are received in convertible foreign currency, whether Invoice in terms of section 31 of the Central Goods and Services Tax Act; 2017 read with Karnataka Goods and Service Tax Act, 2....
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....As per clause 9 of the terms and conditions of the standard agreement, some quantity of test item and data fact sheet of the material in the form of material safety data sheet, Certificate of Analysis and Test item data sheet will be provided by the customer to KBRL. KBRPL Will then prepare a draft study plan which contains the process to be followed for testing and analysis of test item. The draft study plan will include the treatment of test item, parameters of observation, recording and data compilation, reporting of technical testing, etc. This draft plan will then be sent to customers for approval. Once the draft study plan is approved, it will be signed by both the parties which will be known as final study plan. KBRPL will then initiate technical testing and analysis on the test item for preparing a study report. 3.7 During the process of technical testing, the test items as provided by the customers are consumed. In other words, the test items are utilized for preparing the study report after completion of technical testing, since consumed are not returned. A draft of study report will be sent to customers for approval. Once the same is approved, the final study report wi....
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....d that there is no supply by KBRPL involved in terms of Section 7 of the CGST Act read with KGST Act, 2017", the applicant submits as under: (a) The activity of technical testing and analysis provided by KBRPL may be considered as supply as:- (i) There is a service involved which is provided by KBRPL to its overseas customers in the form of technical testing; (ii) There is consideration involved which Will be paid by the overseas customer in convertible foreign currency. 4.3 On the third question "Where the customer providing the material is not residing in India and sends material from outside India to the applicant in India, for carrying out testing and analysis and issuance of certificate thereafter, such an activity if held to be supply in term of Section 7 of the CGST Act read with KGST Act, 2017, and where payments are received in convertible foreign currency, whether Invoice in terms of Section 31 of the CGST Act read with KGST Act, 2017, can be issued without charging Goods and Services Tax therein? the applicant submits as under: (a) The activity of technical testing and analysis carried out by the applicant is likely to be a supply of service. The considerat....
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.... during personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicants and relevant facts. 6.2 Regarding the first question whether the activity of the applicant in testing and analysis is liable to GST, the activity of the applicant is examined and found that the applicant is supplying services and the same is covered under the definition of "supply" as envisaged in Section 7(1) of the CGST Act and KGST Act and there is a supply of services for consideration in the course or furtherance of business, 6.3 Regarding the second question, since the activity of the applicant is treated as a "supply" it is immaterial from where the applicant is receiving goods and to whom he is supplying the services and in what form the consideration is received, so long as there is a supply of services and he receives consideration for the same and that supply is in the course or in furtherance of business. Hence the services provided by the applicant by receiving the goods from outside India and sending the report outside India is a "supply" of services. 6.4 Regarding the third issue, it is clear from section 31 (2) of the CGST Act, 2017 that a....