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2018 (12) TMI 895 - AAR - GSTServices by way of conducting religious ceremonies by hiring various Pundits / Brahmins for the welfare of the people through its own website - GST on commission which the Applicant receives from pundits/website users or on the booking value received from website users. - registration u/s 22/24 of CGST Act, 2017 - Exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 - Held that - Entry No.13 (heading-9963) covers the services by a person by way of Conduct of any religious ceremony . Thus it would cover services provided by a person who is conducting the religious ceremony - In terms, as per the GST law, applicant is acting as an Intermediately person. The applicant is taking booking of services online on his own web site from the customers and intimates the names of pundits/ Brahmins who would perform the job to the customers also on online. For that purpose he is charging to the customers as per the models submitted - the Applicant is not covered under the scope of exemption notification entry No .13. In the present case Punditji s are the person who are actually performing the services like puja, abhishek to the customers and therefore they are eligible for exemption from GST for their supply of services - Hence the applicant is not covered under the entry No. 13 of exemption notification No. 14/2017-Central Tax (Rate) dated 28th June 2017 and therefore his services are not exempt. Hence it is not applicable to the Applicant. Registration u/s 22/24 of CGST Act, 2017 - Held that - The applicant is in state of Maharashtra and is doing the business from this state and therefore, Applicant would be liable to get registered considering the provisions of law and nature of business activity. We find that applicant is providing the services and doing the activities through electronic network of owns website - applicant is covered under section 2 (44) and 2(45) of CGST/MGST ACT as a Electronic commerce and Electronic commerce operator . As per the definitions as above, applicant is squarely covered under the Electronic commerce operator Considering the section 24-and the categories of persons mentioned therein, shall be required to be registered under this Act, the category No (x) is related to every electronic commerce operator; - the applicant is covered under Electronic commerce operator and shall be required to be registered under this Act without fulfilling of threshold limit. So that he is liable to get registration under the GST ACT. If the Applicant is liable to pay GST, then on what value GST liability needs to be discharged, whether on the commission which the Applicant receives from pundits/website users or on the booking value received from website users? - Held that - Consideration is first received by him on online as a whole and thereafter major part of it, is given to Pundits who are having an agreement with the applicant to provide their services as and when it is requisitioned but they are not the applicant s employees but are providing their services independently. The actual basic services like puja, abheshek etc are performed by the pundits or Brahmins which are exempted by nature of notification issued under GST ACT. The commission portion is received to the applicant out of total consideration received online from the service recipient. As per the provisions of law the commission is the supply of service and it would be the value on which he would be liable for GST and thus the Applicant would be liable to pay GST on the value of commission received from website users not for on total amount received. Ruling - The exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 is not applicable to the Applicant. Applicant is liable to get registered under section 22/24 of CGST Act, 2017 - As per the provisions of section 24 of CGST/MGST ACT, the applicant, is covered under Electronic commerce operator Hence, he is liable to get registered. The Applicant is liable to pay GST on the on the value of commission received from website users/ Pundits , not for on total amount received.
Issues Involved:
1. Applicability of exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017. 2. Requirement for the Applicant to get registered under section 22/24 of CGST Act, 2017. 3. Determination of the value on which GST liability needs to be discharged. Detailed Analysis: Issue 1: Applicability of Exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 The applicant provides services by hiring pundits for religious ceremonies like pujas and abhisheks through an online platform. The applicant contended that these services fall under Sr. No. 13 of Notification No. 12/2017, which exempts services by way of conducting religious ceremonies. However, the authority observed that the applicant acts as a facilitator or intermediary between the customers and the pundits. The actual religious ceremonies are conducted by the pundits, not by the applicant. Therefore, the exemption under Sr. No. 13 of Notification No. 12/2017 is not applicable to the applicant as they do not directly conduct the religious ceremonies but merely facilitate the service. Issue 2: Requirement for the Applicant to Get Registered under Section 22/24 of CGST Act, 2017 The applicant argued that their expected turnover was below the threshold limit of ?20 lakhs and thus, they were not required to register under the CGST Act. However, the authority noted that the applicant operates an online platform for booking religious services, which qualifies them as an "Electronic Commerce Operator" under sections 2(44) and 2(45) of the CGST/MGST Act. According to section 24 of the CGST Act, electronic commerce operators are required to register irrespective of their turnover. Consequently, the applicant is liable to get registered under section 22/24 of the CGST Act. Issue 3: Determination of the Value on Which GST Liability Needs to Be Discharged The applicant sought clarity on whether GST should be discharged on the commission received or on the total booking value. The authority clarified that GST is to be levied on the "transaction value," which is the price actually paid for the supply of services. In this case, the applicant receives the total booking amount from the users and then pays a portion to the pundits, retaining a commission. The authority determined that GST liability should be discharged on the commission portion retained by the applicant, not on the total booking value. Order: 1. The exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 is not applicable to the Applicant. 2. The Applicant is required to get registered under section 22/24 of the CGST Act, 2017 as they qualify as an "Electronic Commerce Operator." 3. The Applicant is liable to pay GST on the commission received from website users/pundits, not on the total booking value received. This comprehensive analysis ensures that the legal terminology and significant phrases from the original judgment are preserved, providing a thorough understanding of the issues and the authority's rulings.
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