TaxTMI 
TaxTMI 
2020 (7) TMI 83
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Private Limited, the applicant, seeking an advance ruling in respect of the following question. 1. Whether Portescap India Pvt. Ltd. is required to pay tax under reverse charge mechanism on procurement of renting of immovable property services from Seepz Special Economic Zone Authority (Local Authority) in accordance with Notification No. 13/2017 dated 28th June, 2017 read with Notification No. 03/2018 - Central Tax (Rate) dated 25th January 2018? 2. Whether Portescap India Pvt. Ltd. is required to pay tax under reverse charge mechanism on any other services in accordance with Notification No. 13/2017 dated 28th June, 2017 read with Notification No. 03/2018 - Central Tax (Rate) dated 25th January 2018? 3. If, ans....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pz SEZ Authority in accordance with Notification No. 13/2017 - C.T. (Rate) & 03/2018- C.T. (Rate) dated 25.01.2018. 2.5 Section 7 of SEZ Act, 2005 provides for exemption to all goods or services procured from a DTA (Domestic Tariff Area) or foreign suppliers specified in first schedule. According to Section 51 of the SEZ Act 2005, the provisions of SEZ Act would have overriding effect on provisions of any other act including taxation laws. 2.6 Section 26 of SEZ Act, 2005 deals with the exemption from tax on services provided to a developer or unit to carry out the authorized operations in a SEZ. The grant of exemption is subject to the terms and conditions as prescribed by the Central Government in terms of sub-section (2) of Section ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appears that any registered person is liable to pay tax under reverse charge basis on procurement of services of renting of immovable property from Central Government, State Government, Union territory or local authority. 2.11 Applicant has reproduced Section 16 of the IGST Act as under:- 16.(1) "zero rated supply" means any of the following supplies of goods or services or both, namely:- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. 2.12 Applicant has also referred to FAQ's issued by the CBIC clarifying the below: "6. When a SEZ unit or SEZ developer procures any goods or services from a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as service providers but from services procured within India as well, since the transaction with an SEZ is considered an inter-state supply and aforementioned notification exempts an SEZ unit from IGST on import of service. Therefore, Applicant is not liable to pay GST on reverse charge in the subject case. 2.17 Applicant is relying on the judgment of the Hon'ble Telangana and Andhra Pradesh High Court in GMR Aerospace Engineering Ltd. & another V/s U.O.I. & Ors (2019 (8) TMI 748) which states that so long as services are used for authorized operations of a SEZ unit, the same should be exempted from the levy of tax. 2.18 Hence, Applicant is not required to comply with the requirements of Notification No. 13/2017 dated 28.06.2017 read ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 pro aided by this authority to an applicant on mailers 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 Therefore, before we decide the question raised by the applicant in this application, it is essential that we first determine whether or not the activities undertaken by the applicant pertains to the supply of goods or services or both, being undertaken or proposed to be undertaken by the applicant. 5.4 Section 95 of the CGST Act, 2017 a....