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2021 (7) TMI 653 - AAR - GSTClassification of supply - supply of goods or supply of services - determination of tariff head - online tendering - offline tendering - If tendering is service then whether it will be considered as administrative services or specific Service? - Registration Activities and their related activities - levy of GST on Registering Fees paid under Rule 73 of the Bombay Dentists Rules, 1951 by the Prospective Dental Practitioners - N/N. 12/20/7-Central Tax (Rate) dated 28.06.2017 as amended. Whether online tending to be considered as Supply of Goods or Supply of Service? - HELD THAT - As per Section 2(12) of the CGST Act. 2017, services , means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged - Online Tendering does not satisfy the definition of goods - further, IGST Act has defined Online Information and Data Access or Retrieval Services to include different services - In the present case at hand, it is found that the provisions of e-tender, which is intangible has to be delivered through telecommunication network or internet. Thus, the intention of the legislature is very clear, to treat such activities as supply of services. Whether offline tendering to be considered as Supply of Goods or Supply of Services? - HELD THAT - The difference between online and offline tendering is only that in the case of the former, the tender forms are sold on line and in the case of the latter, the tender forms are sold as printed matter. In offline tendering too, there are intangible products such as application, payment of fees, submission of bids. etc. These services are difficult to be identified individually. In both cases i.e offline and online tendering, forms are sold, collected from the applicant, processed and finally after the entire process of documentation, verification of the applicant s position to perform the contract, tenders are allotted to a particular person to the exclusion of others. In the process, processing fees and other deposits may also be collected from the various persons who are willing to fulfill their requirement for procurement of goods or services. Offline Tendering does not satisfy the definition of goods , in its entirety. The definition of services as mentioned in the Business Dictionary Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation . Sometimes services are difficult to identify because they are closely associated with a goods such as the combination of a diagnosis with the administration of a medicine. No transfer of possession or ownership takes place when services are sold - Hence offline tendering, will also be considered as rendering of services. Under which tariff head the Online Tendering should get taxed? - HELD THAT - The GST Tariff for services comprises of Chapter 99. Headings 9954 to 9999. It is seen that online tendering is not specifically mentioned in any of the Headings and therefore it is fell that the Appropriate Heading in this case would be Heading 9997 since the said heading Covers other services - Since Online Tendering as a service is not specified Anywhere, the same should get taxed under Service Heading 9997. Under which tariff head the Offline Tendering should get taxed? - HELD THAT - The process of offline tendering is also a supply of services. The GST Tariff for services comprises of Chapter 99 Headings 9954 to 9999. It is seen that offline tendering is not specifically mentioned in any of the Headings and therefore it is felt that the appropriate Heading in this case would be Heading 9997 since the said heading covers other services - Since Offline rendering as a service is not specified anywhere, the same should get taxed under Service Heading 9997. If tendering is service then whether it will be considered as administrative services or specific Service? - scope of Advance Ruling - HELD THAT - This specific question does not fall under the clauses mentioned in Section (97) (2) of the CGST Act. However it is already held the both, online and offline services are classifiable under Service Heading 9997 as other miscellaneous services including services nowhere else specified). Whether the activities conducted by the Maharashtra State Dental Council are the Registration Activities and their related activities laid down in the Act exempted under the N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended and consequently, the receipt of the Registering Fees paid under Rule 73 of the Bombay Dentists Rules, 1951 by the Prospective Dental Practitioners to the Council is exempted from the levy of Goods and Services tax? - HELD THAT - N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 exempts the intra-State supply of services of description as specified in column (3) of the Table mentioned therein from payment of GST. The services, mentioned in the subject application, as rendered by the applicant does not specifically find mention in the said notification - the activities of the applicant are not exempted under the said notification and consequently, the receipt of the Registering Fees by the applicant is not exempted from the levy of Goods and Service tax.
Issues Involved:
1. Classification of online tendering as Supply of Goods or Supply of Services. 2. Classification of offline tendering as Supply of Goods or Supply of Services. 3. Appropriate tariff head for Online Tendering. 4. Appropriate tariff head for Offline Tendering. 5. Classification of tendering as administrative services or specific services. 6. Exemption status of registration activities conducted by the Maharashtra State Dental Council under GST. Detailed Analysis: Issue 1: Classification of Online Tendering The judgment clarifies that online tendering is considered as a Supply of Services. It is defined by the CGST Act, 2017, wherein services mean anything other than goods, money, and securities. Online tendering involves processes such as application, payment of fees, and submission of bids, which are conducted online. The judgment emphasizes that online tendering does not meet the definition of 'goods' and aligns with the definition of 'services' as per Section 2(12) of the CGST Act, 2017. Therefore, online tendering is categorized under services. Issue 2: Classification of Offline Tendering Offline tendering is also classified as a Supply of Services. The process involves manual procurement activities such as purchasing tender forms, submitting bids, and paying fees. The judgment highlights that both online and offline tendering processes involve intangible products and services that do not fit the definition of 'goods'. The definition of 'services' under Section 2(12) of the CGST Act, 2017, is inclusive and broad, covering activities other than goods, money, and securities. Thus, offline tendering is also deemed as rendering services. Issue 3: Tariff Head for Online Tendering The judgment specifies that online tendering should be taxed under Service Heading 9997. This heading covers miscellaneous services, including those not specified elsewhere. Since online tendering is not explicitly mentioned in any other headings, it falls under this category. Issue 4: Tariff Head for Offline Tendering Similarly, offline tendering is also to be taxed under Service Heading 9997. The judgment reasons that offline tendering, like online tendering, involves services not specifically categorized under other headings. Therefore, it is appropriately classified under the miscellaneous services heading. Issue 5: Classification of Tendering Services The judgment addresses that tendering, whether online or offline, will be considered as 'miscellaneous services including services nowhere else specified'. This classification is made because the specific question does not fall under the clauses mentioned in Section 97(2) of the CGST Act, but the nature of the services aligns with the miscellaneous category. Issue 6: Exemption Status of Registration Activities The judgment concludes that the activities conducted by the Maharashtra State Dental Council, including registration activities and related activities laid down in the Act, are not exempted under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Consequently, the receipt of the Registering Fees paid by prospective dental practitioners is not exempted from the levy of Goods and Services Tax. The services rendered by the applicant do not specifically find mention in the said notification, hence they are not exempted. Order: 1. Online tendering is considered as Supply of Services. 2. Offline tendering is considered as Supply of Services. 3. Online Tendering should be taxed under Service Heading 9997. 4. Offline Tendering should be taxed under Service Heading 9997. 5. Tendering will be considered as 'miscellaneous services including services nowhere else specified'. 6. The registration activities conducted by the Maharashtra State Dental Council are not exempted from GST.
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