Liability to pay tax is dependent on place of supply; AAAR remanded matter back to decide advance ruling on place of supply

Case Details: Appellate Authority for Advance Ruling, Karnataka Myntra Designs (P.) Ltd., In re - [2022] 145 taxmann.com 327 (AAAR-KARNATAKA)

Judiciary and Counsel Details

• • Smt. Ranjana Jha & Smt. Shikha C, Member
  • Tarun Gulati, Sr. Adv. & Kishore Kunal, Adv. for the Appellant.

Facts of the Case

The appellant filed an application for advance ruling which involved question related to determination of place of supply. The Authority for Advance Ruling (AAR) held that question of taxability of providing advertising space in web portal to foreign entity would involve determination of place of supply and it can’t be answered. The appellant filed appeal against the ruling.

AAAR Held

The Appellate Authority for Advance Ruling observed that the place of supply is absent in the list of issues covered in Section 97(2) of CGST Act for advance ruling but liability to pay tax is dependent on place of supply and the same is covered under clause (e ) of Section 97(2). Moreover, the Kerala High Court in case of Sutherland Mortgage Services INC has held that the place of supply is within jurisdiction of Authority for Advance Ruling. Therefore, the matter was remanded to AAR for fresh decision.