In re Comsat Systems Private Limited (AAR Telangana)
The case revolves around determining the place of supply for services including installation, testing, and commissioning of antennas in various locations/states in India.
Comsat Systems Pvt. Ltd, a manufacturer of satellite communication antennas, was asked by its client, Bharat Electronics Ltd, Bangalore, to raise an IGST invoice for services rendered. As the services were to be rendered in various states, the issue at hand was the determination of the place of supply. However, Section 97(2) of the CGST/TGST Act’2017 does not include the determination of the “Place of Supply” as a subject on which an advance ruling can be sought.
The Authority for Advance Ruling, considering the limitations of its jurisdiction under Section 97 of the CGST Act, 2017, concluded that it could not offer an advance ruling on the place of supply of services. This decision emphasizes the limitations of Advance Ruling in the GST framework and points towards the need for clarity in certain areas of the law.
AAR cannot determine of place of supply of services
At Para 12B of the application, the following information is available:
- The company is engaged in manufacturing, supply, install, testing and commissioning of satellite communication antennas system.
At Para 15 of the application, the following facts having a bearing on the question raised are enumerated:
