TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 29
X X X X Extracts X X X X
X X X X Extracts X X X X
....einafter referred as the applicant) is registered under the GST Act 2017 vide GSTIN No. 33AAECR5209H1ZL. The Applicant has sought Advance Ruling on the following question: What is the applicable rate of GST for the mentioned service provided for a whole sum price The applicant submitted a copy of challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they are engaged in the business as a consultant rendering services in the field relating to Import-Export compliances to customers with State and Central Office under Customs, Ministry of Finance & Commerce and for the applications to DGFT, Udyog Bhavan, Application Digital Keys, etc along with facilitating advisory on duty remittance, advice on adoption of Tax model(s) with procurement of various transferable incentives and providing assistance services in related area of Import/ Export of goods/ services. They also provide services of indoctrination (Training session) explaining the benefits on Advisory relating to accounting & payment method in respect of imports, assistance in organizing transferable incentives/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o be heard in person on 19.06.2019 and was heard. They gave a written submission. They stated that they are selling duty credit scrips to their clients' along with certain services such as helping in utilization of the scrip for import, redemption of the scrip. The invoice is single based on the clients' requirement. They give an annexure to the invoice indicating the scrip No/ bond No and face value of scrip. They purchase the scrip at a discount on face value and sell with some profit. They do not specify the split in value for the scrip and other services. They stated that it is a composite supply and principle supply is service and hence totally chargeable to 18% GST. The scrip alone is exempt now under Notification. They stated that they will submit the linked documents of Purchase Order (agreement), communication/correspondences for the various services rendered and write-up on activity done in 2 weeks. They also stated that they do not file the Bill of Entry but undertake to help assessee in filing Bill of Entry. The State Jurisdiction Officer reiterated her written submissions. 3.2 In the written submissions filed by the applicant during the personal hearing, they had encl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) Data Entries Licence number, Lic Date, Value, Licence Type, Licence Category, Port Code, Bank details like Name, Address, Signatory details like Name, Employee Code on Transfer letters, Export name, address, Contact details, Email ID, IEC Code and in some cases they also record export item details and segments as required by their clients * Advocacy: They give services like RTI Drafting, application and follow ups to get various information from departments or companies for their marketing purposes, legal issues, etc * Technical Support:- They provide all the technical support with DGFT server, NIC, ICEGATE server, queries & supports related to Java as it is very frequently required while using ICEGATES, DGWI' etc * Digital Key application: They apply digital keys for their clients * Import - Export Data: They provide import and export data of their required segments with updates and reports with information on price, quantity, buyers, suppliers, market opportunities, competitor shipments, trading partners, suppliers and strategies Daily updates on GOI Policies under Ministry of Commerce & Finance 4.2 The applicant has furnished copy of the Service Order in respect of M....
X X X X Extracts X X X X
X X X X Extracts X X X X
....regoing services are to be provided as a single offering of Consultancy service, failing which the provision of service will not be meaningful ii. The service recipient pays single price regardless of the services within the package, applicant is obliged to provide all services including the technical or personal expertise of the consultant and usage of scrips. iii. Consultancy service, consisting of technical or personal expertise of the consultant and the usage of scrips is supplied together to the client, in conjunction as one bundle of service. Conjunction means "Condition of being joined" iv. Therefore, supply of Consultancy service by the Applicant consisting of technical or personal expertise of the consultant and usage of scrips will have to be construed as a supply of composite service made by the applicant as these services are naturally bundles and supplied in conjunction with each other in the ordinary course of business, one of which (i.e. technical or personal expertise of the consultant) is the principal supply. 6. We have carefully considered the submissions made by the applicant in the advance ruling application, the additional submissions made and the com....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... by advising, updating on the incentives available, facilitating for the same, documents preparation related to duty payments, tracking of the goods, etc. In the instant case they provide along with Contract of duty credit scrips facilitation & its accountability, documents preparation related to duty payments like Bill of Entry, etc., Document Management system(DMS i.e., Storage of Hard copies, Soft Copies and Data Entries), Goods transport track, redemption of scrips and refund of additional duties from Customs, if any. The service order is to support in the compliance of Customs and DGFT up to the clearance including credit scrips facilitation. This involves procuring the duty credit scrip from an exporter and supplying it to the client of the applicant. We find that the stated services are supplied along with supplying of the duty credit scrip as seen in the invoice and service order. The applicant is billing the client for a single lumpsum payment. The applicant states that these supplies are naturally bundled together. However, that is not the case. It is seen that the duty credit scrip is purchased by the applicant by means of transfer, which means that the scrip belongs to....