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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 ..... zation and inter-alia engaged in conducting bio-availability and bioequivalence and clinical trials for various pharmaceutical companies located in and outside India. In the process of providing the above services, the applicant provides scientific testing and technical analysis 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 wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has been raised for advance ruling - "Whether the activity of the applicant provided to foreign clients in the nature of scientific testing and technical analysis on pharmaceutical products will be treated as 'export of service' under the provisions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct etc., which are all envisaged in Section 97(2) vide clauses (a) and (b) therein. It is submitted that the determination of liability to pay tax on goods or services is based on various factors such as whether the taxable event has occurred, whether 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, revised application for advance ruling, written submissions as well as during the course of personal hearing. 12. Section 97(2) of the Central Goods and Services Tax Act, 2017 (herein after referred to as the 'CGST Act, 2017') and Gujarat 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 13.3 The provisions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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