TaxTMI 
TaxTMI 
2022 (4) TMI 1344
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....ort of service? 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 Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT 2.1 The Applicant, M/s. MEK Peripherals India Pvt Ltd is a reseller of Intel products and registered under the GST laws in Maharashtra. 2.2 The Applicant has submitted that various GST registered distributors import the product from Intel inside US LLC and the Applicant purchases the products from the said Distributors and further sells the same product to various retailers. 2.3 That they have entered into agreement with Intel inside US LLC under Intel Authorized Components Supplier Program (IACSP) and thereby will receive a non-binding Plan of Record Target (POR Target) under which, Applicant will earn certain incentive as percentage of performa....
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....specifically linked to relevant invoices. Therefore, on this ground it cannot be said that the Incentives are a consideration for supply of any product. 2.9.1 Finally the applicant has asked if it is considered as supply than whether it will qualify as export of service. 2.9.2 Without prejudice, if it is held that the impugned transaction does not amount to discount, then the said transaction of incentive may be considered as consideration for supply. Since there is no supply of goods involved between the applicant and Intel inside US LLC, the said supply will qualify as supply of service only and in case of supply of service, the present supply will qualify as export of service in view of specific definition of export of service defined under sec 2{6) of IGST Act. 2.9.3 In the present case the supplier of services (applicant) is located in India and recipient who is Intel inside US LLC is located outside India. As per Section 13 (2) of the IGST Act, 2017, the place of supply is the location of recipient of service and since Intel inside US LLC is located outside India the place of supply shall be outside India. Further, Incentive received is in convertible foreign exchang....
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...., 2017, tax is levied on the supply of goods or services on the value determined under Section 15 of the CGST Act, 2017. The scope of supply as defined under Section 7 of the CGST Act, 2017 includes supply of goods or services or both by way of sale made or agreed to be made for a consideration. Section 15 of the CGST Act, 2017 further provides that the value of supply shall be the transaction value, which is the price actually paid or payable for the supply in question. 5.5.1 Section 15 (3) of the CGST Act, 2017 which according to the applicant's submissions is relevant in the subject case is reproduced as under:- 15 (3) The value of the supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) Input tax credit as is attributable to the discount on the basis of document issued by the supplier has bee....
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....y of goods between the concerned persons it appears that IIUL is paying consideration (in the form of incentives) to the applicant for receiving marketing services which would augment the sale of Intel products in the country. Therefore, the said amounts received by the applicant cannot be considered as Trade Discounts received. 5.7.1 In response to the third question, on the basis of the facts of the matter, we are of the opinion that, the applicant is rendering marketing services to IIUL since the main intention of the agreement between IIUL and the applicant is for increasing the sales of Intel Products. 5.7.2 For the present supply to qualify as export of service, the impugned transaction should be covered under the provisions of sec 2(6) of IGST Act which defines the term 'Export of Services' as under :- 2(6) "export of services" means the supply of any service when,- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible forei....
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....b-section (5) is supplied at more than one location, including a location in the taxable territory, its place of supply shall be the location in the taxable territory. (7) Where the services referred to in sub-section (3) or sub-section (4) or sub-section (5) are supplied in more than one State or Union territory, the place of supply of such services shall be taken as being in each of the respective States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. (8).................... (9).................... (10).................... (11).................... (12).................... (13) In order to prevent double taxation or non-taxation of the supply of a service, or for the uniform application of rules, the Government shall have the power to notify any description of services or circumstances in which the place of supply shall be the pla....