In re Cartus India Private Limited (GST AAAR Karnataka)
The appellate authority has modified the Advance Ruling Order No KAR/ADRG 92/2019 dated 27th Sept 2019 as follows:
The package of bundled services supplied by the appellant for a single price in terms of the Relocation Management Service agreement (RSA) and Statement of Work (SOW), is a mixed supply in terms of Section 2(74) of the CGST Act, 2017 and the taxability of the mixed supply will be determined in terms of Se
ction 8 (b) of the said Act. The ‘a la carte’ services provided by the appellant, relating to employee relocation is neither a composite supply nor a mixed supply in view of our discussions above. The observations made by the Lower Authority in the impugned order to the effect that the service provided by the appellant is covered under the definition of “intermediary’ is expunged as being beyond the mandate of the Authority in the instant case.We make it clear that the above ruling is based on and limited to the activity carried out by the appellant under the RSA and the SOW referred in this order.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, KARNATAKA
PROCEEDINGS
(Under Section 101 of the CGST Act, 2017 and the KGST Act, 2017)
1. At the outset we would like to make it clear that the provisions of CGST, Act 2017 and SGST, Act 2017 are in parimateria 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 KGST Act.
2. The present appeal has been filed under section 100 of the Central Goods and Service Tax Act 2017 and Karnataka Goods and Service Tax Act 2017 (herein after referred to as CGST Act, 2017 and SGST Act, 2017) by M/s. Cartus India Private Ltd, No 201, Prestige Sigma, 03 Vittal Mallaya Road, Bengaluru, 560001 (herein after referred to as Appellant) against the advance Ruling No. KAR/ADRG 92/2019 dated: 27th Sept 2019.
Brief Facts of the case:
3. Cartus India Private Limited (hereinafter referred to as ‘CIPL’ /’ the Appellant’), is a private limited company, engaged in supply of ‘Relocation Management Service’ to its clients located in India, which primarily involves facilitation/ administration/ management of relocation of client’s employees from one location to another.
4. The essence of the Relocation Management Service agreement (hereinafter referred as ‘RSA’) entered between the Appellant and the Client is as follows:
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