In re Maithani Enterprises (GST AAAR Haryana)
What is the applicable GST tax rate in this case, and are the services provided by the applicant considered zero-rated services? b. Do the services provided by the applicant qualify as an export of services, and is the applicant entitled to a refund of Input Tax Credit (ITC) used for providing these services?
The Haryana Appellate Authority for Advance Ruling (AAAR) dismissed the appeal filed by M/s Maithani Enterprises and upheld the Advance Ruling Authority’s decision that the services provided by the appellant to a Malaysian company, M/s Meteora Consulting Sdn. Bhd., do not qualify as “export of services” under the IGST Act and are taxable in India at 18% IGST. The appellant, a GST-registered entity in Haryana, provided sales and marketing consulting and manpower/HR consulting services to Meteora, which was engaged in a consulting project for an Indian company, M/s Modenik Textiles Pvt. Ltd. The appellant contended that it rendered services directly to Meteora on a principal-to-principal basis, received consideration in convertible foreign exchange, and therefore satisfied all conditions of export of services under Section 2(6) of the IGST Act. It further argued that the services were not intermediary services under Section 2(13) and sought classification as zero-rated supplies along with eligibility for refund of unutilized Input Tax Credit (ITC).
