TaxTMI 
TaxTMI 
2025 (12) TMI 629
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....primarily in the nature of bulk distribution, through various networks and operate in 16 states and UTs. The applicant has developed a supply chain management [SCM] platform accessible via its website and/or mobile app. This facilitates connection of farmers, producers & brand with retailers enabling seamless sales of agricultural produce & staples 3. The applicant proposes to enter into an agreement to customize its SCM platform to suit certain specific requirement of an overseas client, to grant a perpetual license for its use, while retaining ownership of the proprietary platform. The consideration will be received in foreign exchange. In the event of any failure. the applicant will have the right to exercise the receipt of considerat....
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....n the form of preference shares as part of the Overseas Direct Investment. Para 2(iv) of Schedule I of the OI Rules allows capitalisation of dues, facilitating the acquisition of shares in a foreign company. (iv) receipt of preference shares as consideration brings share capital of overseas entities into India. As FEMA and RBI recognize this form of receipt of consideration as valid, the same would be deemed as sufficient and appropriate for the purpose of Section 2(6)(iv) of the IGST Act, 2017 too. (v) this mode of settlement is deemed receipt of consideration in terms of Circular no. 78/52/2018-GST dtd. 31.12.2018. (vi) Section 2(31) of the CGST Act, 2017 & Rule 37 of the CGST Rules, 2017 recognize non-monetary ....
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....cept for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 8. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made both oral and written during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 9. We find that the short issue to be decided is whether the applicant can receive the export proceeds in the form of preferential shares of the foreign entity and....
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....th the questions into one question. We find from the question framed, that the intention of the exporter is also only to know whether preferential shares of the foreign entity, satisfy the requirement of consideration i.e. convertible foreign exchange. The other leg of the question is just an ancillary one. 12. As per Section 97(2), the question on which the advance ruling can be sought under the Act, is in respect of the following: - (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to hav....