Case Law Details
In re Airbus Group India Pvt. Ltd. (GST AAAR Karnataka)
The Appellate Authority uphold the order No. KAR ADRG 31/2021 dated 01/07/2021 passed by the Advance Ruling Authority and the appeal filed by the Appellants M/s. Airbus Group India Private Limited, stands dismissed all accounts.
One of the important requirements for supply of any service to be treated as export of service’ is that the place of supply of service is outside India. The provisions for determination of place of supply of services where the location of the supplier or the location of the recipient of services is outside India are contained in Section 13 of the IGST Act, 2017. Section 13(8)(b) of the said Act stipulates that the place of supply in the case of intermediary services will be the location of the supplier of service. In this case, the activity of the Appellant who is the supplier of intermediary service i.e collection of information of parties in India, analysis of potential suppliers and skill development of existing suppliers, are all very much done in India, which is the location of the supplier of intermediary service. Therefore, by virtue of Section 13(8) (b) of the IGST Act, it automatically flows that the place of supply of the intermediary service provided by the Appellant to Airbus France, is in India. When the place of supply is in India, it does not satisfy one of the conditions for export of service, that the place of supply should be outside India. Therefore, we hold that the intermediary services provided by the Appellant to Airbus France, do not qualify as export of service.
FULL TEXT OF THE ORDER OF AUTHORITY OF APPELLATE ADVANCE RULING, KARNATAKA
At the outset we would like to make it clear that the provisions of CGST, Act 2017 and SGST Act 2017 are in pari materia and have the same provisions in like matter and differ from other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act.
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