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TMI Blog2022 (5) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, Cultural program, lunch dinner, Airport Pick Up Drop - the principal supply of ISCCM to its delegates attending the conference is imparting knowledge/ workshops on topics of medical field. For this very reason the delegates desire to attend the conference and not merely for supporting services such as hotel accommodation or air port pick up and drop - Professional Service supply is the essence of the package of services supplied by ISCCM to its delegates and is thereby the principal supply by ISCCM to its delegates. ISCCM supply to Exhibitors - HELD THAT:- ISCCM is organizing trade fair and exhibition. Its exhibitors showcase and exhibit their products/ services. The participation fees charged by ISCCM on these exhibitors is for the service of organizing exhibition for the exhibitors which finds entry at SAC 998596 under events, exhibitions, conventions and trade shows organisation and assistance services . Tax Liability for showcasing name/logo/brand of other persons by ISCCM - HELD THAT:- ISCCM supplies Sponsorship services to its respective customers which finds entry at SAC 998397 under the category of Sponsorship services and brand promotion services . We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernational vendors as well. 3. ISCCM will offer following facilities to the delegates in the event at an all inclusive registration fees: a. Technical Theme - based Seminars b. Access to exhibition c. Interactive workshop and scientific session d. Hotel Room Accommodation e. Cultural programs, lunch dinner f. Airport Pickup Drop. 4. ISCCM has submitted that the interested local, national international vendors will be offered to participate in the trade fair to showcase and exhibit their products against certain participation charges. Further, various brand promotion packages will be offered to local, national international vendors in the course of the event. 5. ISCCM submits that bundle of services is being offered to the delegates; reference to the concept of 'composite supply' under CGST Act, 2017 is required: (30) composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services under GST is provided vide Annexure of Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017, relevant extracts of the Annexure and Notification is as under: 444 Group 99859 Other Support Services 450 998596 Events, exhibitions, conventions and trade shows organisation and assistance services 998599 Other support services nowhere else classified Notification No. 11/2017 - Central Tax (Rate) 23 Heading 9985 (Support Services) Support Services other than (i) and (ii) above 9 - ISCCM understands that services by ISCCM to the delegates shall be classified under HSN 998596 taxable at the rate of 18% 12. ISCCM has submitted that as explained in the facts of the case, it will organize in the course of event, a trade fair also. The exhibitors will be allowed to display their products at a specified location in the trade fair venue, advertise t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... everse charge basis under Section 9(3) of CGST Act, 2017 vide Notification No. 13/2017 - Central Tax (Rate), dated 28.06.2017. 13.4 ISCCM further submits that it understands that brand promotion packages offered by them to partnership firms and body corporate shall be classified under the same entry HSN 998397 having description 'Sponsorship services and brand promotion services' taxable at the rate of 18% and ISCCM shall be liable to pay tax on such services under normal charge only. 14. ISCCM has submitted that it will procure various supplies during the course of event including the following: I. Services by hotel including accommodation, conference venue and food beverages; II. Supply of food beverages by outside caterers; III. Services provided by event manager like pickup drop, exhibition stall set-up, tenting, etc. 14.1 It is submitted by ISCCM that hotel will be providing a bouquet of Services to the tourist like accommodation for the delegates, availability of conference hall and Food beverages. The above bundle of services shall qualify as a composite supply by the hotel where accommodation service shall be the principal supply. Inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er submitted its comments nor appeared for hearing. FINDINGS 20. At the outset we would like to make it clear that the provisions of CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 21. We note that ISCCM in its application cited that the said Conference to be held in February 21. When inquired regarding this, during personal hearing, Shri Hetang Pandya clarified that the said conference is slated for April 2022. 22. ISCCM supply to delegates i. As per the brochure submitted, this Conference is for researchers, professors and doctors on topics of intensive care and the workshops will be revisiting the clinical practices, new technologies and drugs as well as the current initiatives to deal with pandemic and post pandemic scenario of critical care. The conference to be attended by physicians and Intensivist features the following workshops: (i) Comprehensive Critical Care Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before prospective customers in the said criticare conference. These companies pay consideration to ISCCM and in return get their name/ logo/ brand on stage Backdrop, Standy, Taxi, E-Rickshaw, Chair Head, Rest Cover, Itinerary, Bottle Wrapper, Logo in media, Stationery etc.; Display of their brand in a souvenir for the event (space will be allotted in the souvenir); Presentation (for a specific time slot) and DVD Display. The essence of this service is Sponsorship Service. ii. ISCCM supplies Sponsorship services to its respective customers which finds entry at SAC 998397 under the category of Sponsorship services and brand promotion services . We note that with regard to sponsorship service GST liability is on Reverse Charge Mechanism on the service recipient when the recipient is located in the taxable territory, vide Notification 13/2017- CT(R) dated 28-6-17. We find the supply in this regard to be Sponsorship service supply and dismiss ISCCM s submission that this supply is brand promotion supply. 25. Admissibility of ITC by ISCCM i. We find it relevant to quote the illustration quoted in CBIC Flyer no 4 dated 5-8-2019, as follows: Illustrations - i. A hote ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply. The ITC of tax paid on food and beverages will be available to ISCCM because as ISCCM receives this service from Hotel/ Caterer, it uses this service for making an outward taxable supply as an element of taxable composite supply to its delegates. v. Rent-a-cab service ITC to ISCCM The Cabs have approved seating capacity of not more than 13 persons (including the driver). This service is supplied to ISCCM and ISCCM further supplies it as a part of composite supply to the delegates and thereby the proviso to Section 17(5)(b)(i) CGST Act is satisfied for admissibility of this ITC. vi. In terms of Section 16(1) CGST Act, Exhibition stall set-up and tenting is an input service to ISCCM used in its business, thereby its ITC is admissible. 24. In conspectus of aforementioned Discussion and Findings, We pass the Ruling, RULING 1(a) ISCCM supplies Composite Supply to its delegates, the principal supply being Profession ..... X X X X Extracts X X X X X X X X Extracts X X X X
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