In re Cummins Technologies India Private Limited (GST AAR Maharashtra)
The applicant has sought clarification in respect of various services rendered by them to their group company situated abroad, as to whether such services being supplied by them for consideration to an overseas group company, the liability to pay tax on the subject supplies can be assessed based on taxability as accorded to ‘Zero rated supply’. We now reproduce the question raised by them in the subject application which is as under:-“Whether the liability to pay tax on the subject supplies can be assessed based on taxability as accorded to Zero rated supply?.
This authority can give rulings only as per the provisions mentioned in Sections 95 and 97 of the Act. Section 95 says that the term ‘advance ruling’ means a decision provided by this authority to the applicant on matters or questions specified in subsection 2 of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
We find from the above provisions of section 95, there are the conditions for filing of advance ruling application i.e. the applicant shall ask the question in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by them on matters or questions specified in subsection 2 of Section 97, and to that extent only shall the authority answer/give a ruling to those category of issues.
From the perusal of the question it is seen that their query is with respect to “assessment of their supplies based on taxability”. Such query does not fall under any of the clauses mentioned from (a) to (g) of subsection (2) of section 97 of CGST ACT. Hence we refrain from answering their question.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Cummins Technologies India Private Limited, the applicant, seeking an advance ruling in respect of the following question.
Whether the liability to pay tax on the subject supplies can be assessed based on taxability as accorded to Zero rated supply’?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression ‘GST Act’ would mean COST Act and MGST Act.
2. FACTS AND CONTENTION — AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus-
STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTION(S) ON WHICH THE ADVANCE RULING IS REQUIRED
1. This Application is being preferred on behalf of Cummins Technologies India Private Limited (“CTIPL/the Applicant”), a company incorporated in India under the provisions of the Companies Act, 1956 having its registered office at Cummins India Office Campus, Tower A, 2nd, 4th & 8th floor, Survey No. 21, Balewadi, Pune – 411045
2. The Applicant is a group company of Cummins Inc. (“Cummins”) situated in Columbus, Indiana and as such is engaged in manufacture and sale of products and provide services relating to turbo technologies, emission solutions, etc. The Applicant is duly registered under the Central Goods and Service Tax Act, 2017 (“COST Act”) and Maharashtra Goods and Service Tax Act, 2017 (“MOST Act”) bearing GSTIN 27AABCT2018B1ZY.
3. Apart from the above stated activities, the Applicant also possesses necessary manpower and expertise at the best competitive cost to provide various support services to its group companies in India as well as overseas.
4. Accordingly, the Applicant has entered into Agreements with various group companies (‘group company’) for providing its services on principal-to-principal basis. These services are provided to group company and billed out on the basis of cost of providing services plus pre-agreed mark-up for each of the service to be provided. Sample copies of Agreement which stipulate the arrangement for providing these services arc enclosed as ExhibitAl, A2 and A3 respectively.
5. It is submitted that these services inter alia enable the group company to improve its product and service offerings to its customer as well as efficiently develop procurement cycle from vendor. As such, the scope of services to be provided by the Applicant is limited to undertaking the activities for the group company alone which includes but are not limited to warranty analysis, finance support, quality management system, human resources, etc. and scope of which is explained at length in the table below:
