TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 80
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....owing questions. 1. Whether Futuredent is required to pay IGST under reverse charge mechanism on intermediary services received from Fair Relations GmbH ("Germany)? 2. If answer to above question is yes (i.e. GST payable), Since Futuredent has other business verticals as well in the same entity, whether Futuredent will get ITC on such RCM paid? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Rulin....
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....n FR and the applicant, i.e. Futuredent (earlier known as "Famdent") is liable to GST in India under reverse charge mechanism and, if the transaction is concluded as a taxable supply, whether applicant would be able to claim and utilize the input tax credit on such GST paid. 2.7. As per the scope of "supply" as mentioned in Section 7 of the CGST Act, 2017, the transaction between the applicant and FR shall be treated as supply of services. 2.8 As per the Notification No 10/2017 I.T. (Rate), dated 28.06.2017, in the case of supply of service by any person who is located in a non-taxable territory to any person other than non-taxable online recipient, the liability to pay GST shall be on the recipient of such service and such liability is t....
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....at they are eligible to claim the input tax credit paid on reverse charge basis, even though, after the slump sale of exhibition business of Futuredent, there are other business verticals remaining in the entity which can utilize the ITC. 03. CONTENTION - AS PER THE JURISDICTIONAL OFFICER: The submissions made by the jurisdictional officer is as under:- 3.1 As per the contract dated 23.05.2016 submitted, the applicant is interested in selling its trade shows or shares thereof to an investor and has asked FR, to act as a broker for prospective buyer, of its trade shows. FR would arrange, facilitate and support direct contract and negotiations between the applicant and interested parties against which the applicant would pay a fee of 5.0% ....
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....ation has not been executed by FR. In the subject case, the intermediary shall be liable to pay tax for such services. 3.5 In respect of the second question i.e. if IGST is payable under reverse charge mechanism, since the applicant has other businesses verticals as well in the entity, whether applicant will be able to avail ITC on GST paid under reverse charge mechanism. 3.5.1 As per agreement between applicant (seller) and MDIPL (buyer) supply is done on the basis of "Slump Sale" and Slump sale is an exempted supply. The term "Goods" has been defined under Section 2(52) to mean any movable property other than money and securities. GST is not applicable on Slump Sales considering "business as a going concern" to be outside the scope of "....
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....e issue before us pertains to applicability of a notification. 5.2 In the subject case, we find that, the applicant is a procurer of intermediary services from Fair Relations GmbH and the subject questions have been raised by the applicant as a recipient of services. 5.3 The Authority is governed by the provisions of Chapter XVII of CGST ACT and the relevant Sections are 95 to 98, 102, 103, 104 and 105. As per Section 95, the term 'advance ruling' means a decision provided by this authority to an applicant on matters or questions specified in subsection 2 of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 5.3 Thus the applicant can raise questions on matte....