TaxTMI 
TaxTMI 
2022 (5) TMI 1291
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....ly). The Applicant is providing Covid- 19 Testing facility for all the passengers travelling by air, whether domestic or international. 3. The applicant has sought advance ruling in respect of the following question: i. Whether Goods and Service Tax ("GST") will be levied on Revenue Sharing invoices raised by one party on to another party wherein the outward supply of services is exempt in nature. 4. Admissibility of the application: The question is about the "determination of the liability to pay tax on any goods or services or both" and hence is admissible under Section 97(2) (e) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue: 5.1 The applicant has stated that it is a Company registered under Companies Act, 1956 (now Companies Act, 2013) and having its registered office at 4/9, Kirti Nagar, Industrial Area, New Delhi. 5.2 The applicant has stated that they are providing services for food testing, pharmaceuticals testing, herbal testing, Covid testing etc. for domestic as well as foreign clients. Being a service provider, they are also registered under the Goods and Services Tax Act, 2017 in variou....
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.... the slabs / slab rates on which the revenue will be shared between both the parties, to avoid any future confusion and litigation. 5.8 The applicant states that BIAL will raise tax invoices for both rent and revenue sharing separately on them, as per the payment terms mutually decided by the parties. As per the mutually agreed payment terms between BIAL and the applicant, it can be construed that both rent and revenue sharing clauses are separate in nature. Hence separate tax invoices are generated. 5.9 The applicant states that BIAL has raised the tax invoices as per mutually agreed payment terms between BIAL and applicant and charged GST @ 18% on the value of its revenue share. The tax invoices are being generated by BIAL bearing SAC 996761 i.e., Airport Operation Services. 6. Applicant's Interpretation of Law: 6.1 The applicant is of the view that they are providing Covid Testing facilities at BIAL and such activities are exempt from levy of GST vide Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017 as such activities are covered under Sl.No.74 Heading 9993 which specifically exempts services by way of healthcare services. Hence, these transacti....
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....es: 2. In this Act, unless the context otherwise requires,- (1) "actionable claim" shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882; Section 3 of Transfer of Property Act, 1882 state: "actionable claim" means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property, or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant, which the Civil Courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent. In this case, the Profit Sharing Agreement gives the applicant a claim to the beneficial interest in the profits on the event of a strategic sale where at least 51% of paid-up Equity Share capital of the Company is sold at a price not less than Rs.75 or an initial public offering where the mid-point of the price band as per the red-herring prospectus is not less than Rs. 75 per equity share and subsequent listing on Stock Exchange. Either of these events may not occur or both may not....
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....isions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the applicant and also their submissions made during the time of hearing. 10. The applicant states that they have entered into an agreement with BIAL for operation of Covid Testing Facility on 2nd September 2021. As per this agreement, the BIAL will get certain percentage of revenue based upon the turnover of the applicant. 11. The applicant states that BIAL raises tax invoices for both rent and revenue sharing separately on them. BIAL raises the tax invoices as per mutually agreed payment terms between BIAL and the applicant and charges GST @ 18% on the value of its revenue share. The tax invoices are being generated by BIAL bearing SAC 996761 i.e., Airpo....