TaxTMI 
TaxTMI 
2021 (7) TMI 74
X X X X Extracts X X X X
X X X X Extracts X X X X
....y appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ause (6) of section 2 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as, the IGST Act, 2017) and therefore, he has no liability to pay tax on such supply of services. 1.5 The aforesaid question on which the advance ruling is sought for is found to be covered under clause (e) of sub-section (2) of section 97 of the GST Act. 1.6 The applicant states that the question raised in the Application has neither been decided by nor is pending before any authority under any provision of the GST Act. 1.7 The officer concerned from the Revenue has raised no objection to the admission of the Application. 1.8 The Application is, therefore, admitted. 2. Submission of the applicant 2.1 The applicant submits tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... commission directly from the overseas seller to his bank account in India meaning thereby the overseas seller of goods (the recipient of services in the instant case) and the applicant (the supplier of services in the instant case) cannot be termed as merely an establishment of a distinct person in accordance with Explanation 1 in section 8 of the IGST Act, 2017. 2.5 The applicant further portrays following nature of supply of services to be undertaken by him: (a) Services is provided where both the supplier and the recipient of the goods are located outside the taxable territory of India; (b) Services is provided where the supplier of goods is located outside the taxable territory of India and the recipient of the goo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Indian rupees whether permitted by the Reserve Bank of India; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8; 4.3 According to the modus operandi of the business as submitted by the applicant, we find that the supplier of service i.e., the applicant is located in India and the recipient of the service i.e., the overseas supplier of goods to whom the applicant provides services is located outside India. However, the nature of activities going to be undertaken by the applicant towards arranging or facilitating supply of goods envisages the services closely akin to the services provided by an 'intermediary' as defined in c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mers and to connect them with the supplier would result in a supplier of service being classified as an intermediary? 4.6 It has been admitted by the applicant that the value of supply of services in the form of commission is determined at the rate normally prevalent in the market which is generally 1% or 2% depending on the volume of trade. It clearly establishes the fact that the supply of services as provided by the applicant is inextricably linked with the supply of goods made by the overseas supplier. We also find in the present case that the applicant can neither change the nature and value of supply of goods nor he holds the title of the goods at any point of time during the entire transaction. Further, the value of supply of serv....