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TMI Blog2018 (10) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided to foreign clients towards scientific testing and technical analysis services on pharmaceutical products which are supplied by an entity situated outside India would be treated as ‘export of service’ under the provisions of the IGST Act can be determined in light of various provisions of the IGST Act, 2017 including Section 2(6) which defines ‘export of services’ - Thus, one of the important requirements of supply of any service to be treated as ‘export of service’ is that the place of supply of service is outside India. The entire issue is intrinsically related to determination of ‘place of supply’ of service by the applicant. This authority has been constituted in exercise of the powers conferred by section 96 of the Gujarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ysis on pharmaceutical products and other incidental research and development in the pharmaceutical sector. For providing these services, samples of pharmaceutical products are made available to the applicant from an entity situated outside India and the applicant conducts clinical trials on the product for ensuring the scientific correctness of the products and during the process, the products as provided by the entities situated outside India are consumed. In other words, the products are utilized for preparing the report on the efficacy of the same are not returned back to the entity which had sent them for testing. Applicant receives the consideration in convertible foreign exchange for providing these services. 3. The applicant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of IGST Act, 2017? 7. The personal hearing for admission of the said application for advance ruling was again held on 21.03.2018, wherein the authorized representative of the applicant again sought permission to put up a submission as to how this authority is having jurisdiction to decide Place of Supply under Section 97, which is one of the condition to be fulfilled for ascertaining export of service. 8.1 The applicant submitted further written submission dated 28.03.2018 with regard to the jurisdiction of this authority in hearing the present application seeking a ruling on whether the activity of the applicant is taxable and amounts to export of service consequently falling under the zero rated supply under the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the services fall under the category of reverse charge mechanism, who is liable to pay the tax, whether the activity falls under export of service or not etc. and for such determination, various incidental questions might require consideration of the Hon ble Court, Tribunal or the Authority vested to exercise such jurisdiction. 8.3 The applicant referred to definition of export of service as defined under Section 2(6) of the IGST Act, 2017 and zero rated supply defined under Section 16 of the IGST Act, 2017 and submitted that while determining the applicant s liability to pay tax, incidental questions as to whether the activity falls under export of service requires to be answered which will in turn depend upon whether it is expor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ujarat Goods and Services Tax Act, 2017 (herein after referred to as the GGST Act, 2017 ) empowers the Advance Ruling Authority to decide the issues, which are as follows :- (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 have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions for determination of place of supply of services where the location of the supplier or the location of the recipient of services is outside India are contained in Section 13 of the IGST Act, 2017. Section 16 of the IGST Act, 2017 provides that zero rated supply means any of the following supplies of goods or services or both, namely :- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone Unit. 13.4 Thus, the entire issue is intrinsically related to determination of place of supply of service by the applicant. 13.5 The applicant has filed application for advance ruling for determination of place of supply while providing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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