TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 410
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.... 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act. 2. The applicant is a Private Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST Act respectively). The applicant is engaged in the business of selling of fashion and lifestyle products through the e-commerce portal "Myntra". 3. The applicant has sought advance ruling in respect of the following questions:- a. Whether the transaction of the Applicant of providing space on its web-porta....
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....d order through its portal, in its capacity as an e-commerce portal operator, and settles the amount payable with the supplier of the said order within a specified period. 5.3 The Applicant is a registered person and discharges tax liability as per the provisions of the Central Goods and Services Tax Act, 2017 read with the Karnataka Goods and Services Tax Act, 2017 (hereinafter collectively referred to as "Act") with the registration number 29AAECM9636P1ZJ. 5.4 The Applicant on 22.07.2020 entered into an Advertisement Agreement ("Agreement") with Lenzing, a company incorporated under the Companies Act, 1956 having its registered office at 111 Somerset Road, Unit #13-35 to #13-38, Singapore 238164. 5.5 As per the said Agreement, it was m....
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.... make payments raised in the said invoice within 14 days from the date of receipt of the invoice. e. Notwithstanding Applicant's acceptance and execution of the Order Form, the Applicant may remove or refuse to publish or link to any material, which is in its sole discretion considered defamatory, misleading, abusive, unlawful or otherwise inappropriate or in violation of Applicants polices, practice and against Applicant's reputation. 5.6 The Applicant is only involved in providing space on the web-platform to a non-resident foreign company for placing and displaying graphical impressions of the advertisement material for a consideration. Given that the activity is for a nonresident which is outside India and the consideration i....
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.... submissions made during the time of hearing. 9. The transaction involved in the question is analysed and found that the applicant owns an e-commerce portal through which he is providing services of e-platform to the suppliers of fashion and lifestyle products. In his portal, the applicant is also providing the advertisement space for the persons who wish to advertise either their products or for advertisers. The issue before us is about the tax treatment when the space is provided to the advertisers for advertisement. 10. The applicant has submitted that he had entered into an agreement with one such advertiser, M/s Lenzing, based in Singapore, and it was agreed between them that advertisement material in the form of impressions would be....
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.... clients. Only the former is the issue to be discussed. 12. The services provided by the applicant to M/s Lenzing is that of rendering "Sale of internet Advertising Space (except on commission)" and is charging a fixed rate and not a commission for providing such space. Hence the same is classified under six-digit SAC 998365 under the Heading 9983 which reads "Other professional, technical and business services". 13. The services provided by the applicant are covered under the Heading 9983 which reads "Other professional, technical and business services" and the same is taxable as per SI.No.21 of Notification No. 11/2017- Central Tax (Rate) dated: 28.06.2017 which is reproduced below: SI.No. Chapter,Section or Heading Description of Se....