After sale support services cannot be treated as composite supply: AAR

In re Toshniwal Brothers (SR) Private Limited (GST AAR Karnataka)

a) Whether pure and mere promotion and marketing services will be “intermediary services” for the purposes of section 12 of the Integrated Goods and Services Tax Act, 2017 for determining the place of supply of such services?

The contract of services supplied are not pure and mere promotion and marketing services and the services provided is of the nature of facilitating the supply of goods, and hence would amount to “intermediary services” for the reasons enumerated in the aforesaid paragraphs for the purposes of determination of place of supply of such services.

b) If after sale support services are also provided under a composite contract, would it then be composite supply? What will be the principal supply for such contracts?

 The after-sale services provided are not in the nature of a composite contract and they are independent from the services provided in paragraph 1 above and hence there is no question of determination of what will the principal supply.

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