In re Alfatek Services (GST AAR Kerala)
In a ruling by the Kerala Authority for Advance Rulings (AAR), Alfatek Services, acting as an agent for foreign companies in the tire and rubber industry, sought clarity on GST applicability for services provided to its foreign principals. Alfatek promotes products in India and Sri Lanka, assisting with customer interactions, quotations, and installation. The AAR found that these activities qualify as “intermediary services” under the GST Act since Alfatek facilitates product supply without directly supplying goods. Intermediary services conducted in India and Sri Lanka are subject to GST, but Sri Lankan intermediary services may be exempt under Notification No. 20/2019-Integrated Tax, provided specific conditions are met. Additionally, installation services performed in India are taxable, while installations in Sri Lanka can be treated as exports and exempt if paid in foreign currency. This ruling clarifies that GST applies based on service location and service type, with some exemptions for overseas activities contingent on compliance with stipulated conditions.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KERALA
1. Alfatek Services, Sapthagiri, Thipadapuram Hill, Kulathoor P.0, Trivandrum (hereinafter referred to as the Applicant) is a taxpayer registered under the GST Act, engaged as an agent of foreign companies for promoting products used in tire and rubber industry.
