Classification of service— The present appeal has been filed against the Advance Ruling  passed by the Authority for Advance Ruling.

The short issues for determination in this appeal are:-

(i) Whether the activity of technical testing services carried out by the appellant be treated as 'zero rated supply' of services in accordance with the provisions of Section 16 of the IGST Act, 2017, as claimed by the appellant or whether the same does not amount to 'zero rated supply' / 'export of services', as held by the lower Authority ?

(ii) Whether the appellant is liable to pay IGST on the said 'supply of services' as claimed by them or they are liable to pay the applicable CGST + SGST as ruled by the lower Authority ?

The Authority held that in terms of Section 13 (3) the place of supply of service is in Goa, India, since in the given factual situation, the samples/goods on which the testing service is to be performed by the appellant were made available by the service recipients, which squarely fits into the situation specified under the said Section 13 (3) only.

As regards the second issue involved i.e., whether appellant is liable to pay IGST on the aforesaid supply of services, we find that since the supplier of service is in Goa, India and place of supply of service as determined under Section 13(3)(a) of the CGST Act, 2017 is also in Goa, India, the same falls under “Intra-State” supply of services as per Section 8(2) of the IGST Act, 2017 whereby the provisions under Section 7(5)(c) claimed by the appellant would not be applicable. Consequently, the appellant is liable to pay CGST and SGST on the aforesaid supply of service, as held by the lower authority.

Held that— The Ruling given by AAR, Goa is maintained. The appeal filed by the appellant is rejected.