Case Law Details
In re USV Private Limited (GST AAR Maharashtra)
Maharashtra AAR: GST Advance Ruling can be sought by supplier only and not by recipient of goods or services
In M/s. USV Pvt. Ltd. [ORDER No.GST-ARA-91/2019-20/B-77 dated October 14, 2021], M/s. USV Pvt. Ltd (“the Applicant”) has sought an advance ruling on mainly two issues. The first issue pertains to whether the activity of transfer of registered trademarks by Novartis AG (“NAG”) to the Applicant is a supply of goods or supply of services under the Central Goods and Services Tax Act, 2017 (“the CGST Act”) if yes then, whether the Applicant is liable to discharge Goods and Services Tax (GST) on the subject transaction under reverse charge mechanism in terms of entry no. 1 of Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017.
Factually, the Applicant is a healthcare company in India registered under the GST regime and NAG is a Switzerland-based pharma company that owns rights of Trade Marks across the world including India. The said Trade Marks are registered in the name of NAG under the Indian Trade Marks Act, 1999 and the Trade Marks Rules, 2017 in India. And Vide a Deed of Assignment dated 30th November, 2019, NAG has agreed to permanently transfer the said Trademarks related to Indian Territory to the Applicant at an agreed consideration. And the ‘Effective Date’ as stated in the Deed is December 10, 2019 and the application has been filed on January 16, 2020.
The Hon’ble Maharashtra Authority for Advance Ruling (“the Mah AAR”) pointed out that as per section 95 (a) of the CGST Act there are two conditions to be fulfilled for making an advance ruling application; firstly the question asked should be in relation to supply undertaken by the Applicant and secondly the question should be in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the Applicant.
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