In re Midas Foods (P) Ltd (GST AAR Uttarakhand)
(a) Whether Overseas Commission Agent is covered within the definition of the term ‘intermediary’ as provided under section 2(13) of the IGST Act, 2017;
Overseas Commission Agent is covered within the definition of the term intermediary’ as provided under section 2(13) of the IGST Act, 2017;
(b) Whether services received by applicant from the Overseas Commission Agent falls within the meaning of the term ‘import of services’ as provided under section 2(11) of the IGST Act, 2017;
Services received by applicant from the Overseas Commission Agent do not fall within the meaning of the term ‘import of services’ as provided under section 2(11) of the IGST Act, 2017;
(c) Whether the applicant is required to pay GST on RCM basis under section 5(3) of the IGST Act, 2017 on commission paid to the Overseas Commission Agent.
The applicant is not required to pay GST on RCM basis under section 5(3) of the IGST Act, 2017 on commission paid to the Overseas Commission Agent.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, UTTARAKHAND
Note Under Section. 100(1) of the Uttarakhand Goods and Services Tax Act, 2017. an appeal against this ruling lies before the appellate authority for advance ruling constituted under section- 99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order.
AUTHORITY FOR ADVANCE RULING GOODS & SERVICE TAX UTTARAKHAND
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s Midas Foods (P) Ltd, Suijeet Bhawan, Main MP Chowk, Ramnagar Road, Kashipur, U S Nagar -Uttrakhand seeking an advance ruling on following issues:
(a) Whether Overseas Commission Agent is covered within the definition of the term ‘intermediary’ as provided under section 2(13) of the IGST Act, 2017;
(b) Whether services received by applicant from the Overseas Commission Agent falls within the meaning of the term ‘import of services’ as provided under section 2(11) of the IGST Act, 2017;
(c) Whether the applicant is required to pay GST on RCM basis under section 5(3) of the IGST Act, 2017 on commission paid to the Overseas Commission Agent.
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
3. As per the said subsection (2) of Section 97 of the CGST/SGST Act, 2017 advance ruling can be sought by an applicant in respect of:
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of this Act,
(c) Determination of time and value of supply of goods or services or both,
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term
4. In the present case applicant has sought advance ruling on classification and determination of the liability to pay tax on supply of services. Therefore, in terms of said Section 97(2) (a) & (e) of CGST/SGST Act, 2017, the present application is hereby admitted.
5. Accordingly opportunity of personal hearing was granted to the applicant on 08.10.2020. Shri Ashwarya Sharma on behalf of the applicant appeared for personal hearing on the said date and re-iterated the submissions already filed with the application. Ms Preeti Manral, Deputy Commissioner, SGST-Dehradun, concerned officer appointed by the State Authority, also present during the hearing proceedings.
6. From the record submitted by the applicant we find that applicant is registered in Uttarakhand with GSTIN bearing no. 05AACCM1659E1ZR. Before proceeding in the present case, we would first go through the submissions filed by the applicant and the same is summarized as under:
(i) the appellant is a supplier of goods and carries on the business of supply of seasoning, spices, premixes and similar food products to its customers located within and outside India;
(ii) To supply said goods outside India, they sometimes entered into an agreement with some specified person who can search & find out customers who are located outside India, so as to arrange supply of applicant’s goods outside India;
(iii) For such facilitation, the applicant would pay commission to such specified person, ranging from 10-15% on the basis of FOB value of the consignment exported outside India;
(iv) The entire flow chart for supply of goods facilitated through such specified person is as follows:
