Case Law Details
In re Sri Nagaraju Jayanna Partner of J B Exhibitors (GST AAR Karnataka)
In this article, we delve into the recent ruling by the Authority for Advance Ruling in Karnataka regarding the classification of film distribution rights for exhibition in theaters. The case in question, “In re Sri Nagaraju Jayanna Partner of J B Exhibitors (GST AAR Karnataka),” sought clarity on the correct classification for such licensing services. We will analyze the ruling’s implications and its impact on the Goods and Services Tax (GST) regime.
Detailed Analysis:
Sri Nagaraju Jayanna, a partner of M/s J B Exhibitors, filed an application for Advance Ruling under Section 97 of the CGST Act, 2017, and KGST Act, 2017. The application aimed to determine the proper classification of licensing services for the right to exhibit original films, sound recordings, radio, and television programs.
The applicant, who is primarily involved in the exhibition of movies in theaters, sought to expand into the film distribution business. The key question for this Advance Ruling was whether these licensing services should be classified under SAC 997332 or SAC 999614.
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