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TMI Blog2019 (10) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... oods and to whom he is supplying the services and in what form the consideration is received, so long as there is a supply of services and he receives consideration for the same and that supply is in the course or in furtherance of business. Hence the services provided by the applicant by receiving the goods from outside India and sending the report outside India is a supply of services. Where the customer providing the material is not residing in India and sends material from outside India to the applicant in India, for carrying out testing and analysis and issuance of certificate thereafter, such an activity if held to be supply in term of Section 7 of the CGST Act read with KGST Act, 2017, and where payments are received in convertible foreign currency, whether Invoice in terms of Section 31 of the CGST Act read with KGST Act, 2017, can be issued without charging Goods and Services Tax therein? - HELD THAT:- It is clear from section 31 (2) of the CGST Act, 2017 that a registered person supplying taxable service shall issue a tax invoice, unless exempted by the Government by notification, Hence the applicant is required to issue an Invoice as required under section 31(2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Goods and Services Tax Act, 2017 read with Karnataka Goods and Service Tax Act, 2017, the Rules framed thereunder and Notifications issued from time to time, and where payments are received in convertible foreign currency, whether Invoice in terms of section 31 of the Central Goods and Services Tax Act; 2017 read with Karnataka Goods and Service Tax Act, 2017, the Rules framed thereunder and Notifications issued from time to time, can be issued without charging Goods and Services Tax therein. 4. Whether the services of technical testing and analysis provided by KBRPL to customers located outside India can be regarded as export of services as per section 2(6) of the Integrated Goods and Services Tax, 2017? 3. The applicant furnishes some facts relevant to the stated activity: 3.1 The applicant is registered under Companies Act, 1956 as amended by Companies Act, 2013. Its registered office is located at 29, Lala Lajpat Rai Sarani, Kolkata 700020 and is having an office at Bangalore at 10th Main Road, Akkiyappa Garden, Mohan Kumar Nagar, Bangalore-560022, Karnataka from where it proposes to commence business of technical testing and ana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nical testing and analysis on the test item for preparing a study report. 3.7 During the process of technical testing, the test items as provided by the customers are consumed. In other words, the test items are utilized for preparing the study report after completion of technical testing, since consumed are not returned. A draft of study report will be sent to customers for approval. Once the same is approved, the final study report will be delivered in -electronic form. If the same is required by customer in printed form then it will also be delivered in printed form. 3.8 As per clause 1 of the terms and conditions of the standard agreement, invoicing for such services generally occurs in the following manner, unless otherwise specified: 1. 40% of the contract value on confirmation of contract. 2. 30% of the contract value after signing of study plan. 3. Balance 30% of the contract value after submission of draft report. 4. The applicant submits his understanding on the questions posed for ruling and the same reads as under: 4.1 On the first question Whether the activity of technical testing and analysis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om outside India to the applicant in India, for carrying out testing and analysis and issuance of certificate thereafter, such an activity if held to be supply in term of Section 7 of the CGST Act read with KGST Act, 2017, and where payments are received in convertible foreign currency, whether Invoice in terms of Section 31 of the CGST Act read with KGST Act, 2017, can be issued without charging Goods and Services Tax therein? the applicant submits as under: (a) The activity of technical testing and analysis carried out by the applicant is likely to be a supply of service. The consideration in respect of the above supply of services provided to overseas customers will be received by the applicant in convertible foreign currency. To determine whether invoice in terms of Section 31 of the CGST Act can be issued to overseas customers in respect of supply of aforesaid services without charging Goods and Services Tax. the supply of service needs to be classified as exempted under notification no. 12/2017- Central Tax (Rate) dated 28-06.2017 issued under Section 11(1) of the CGST Act, 2017; (b) The supply of service of technical testing and analysis is not specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Act and there is a supply of services for consideration in the course or furtherance of business, 6.3 Regarding the second question, since the activity of the applicant is treated as a supply it is immaterial from where the applicant is receiving goods and to whom he is supplying the services and in what form the consideration is received, so long as there is a supply of services and he receives consideration for the same and that supply is in the course or in furtherance of business. Hence the services provided by the applicant by receiving the goods from outside India and sending the report outside India is a supply of services. 6.4 Regarding the third issue, it is clear from section 31 (2) of the CGST Act, 2017 that a registered person supplying taxable service shall issue a tax invoice, unless exempted by the Government by notification, Hence the applicant is required to issue an Invoice as required under section 31(2) of the CGST Act for the supplies made. 6.5 In respect of the fourth question, the applicant is receiving the goods for testing and analysis. The export of services is defined in clause (6) of section 2 of the IGST Act and r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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