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The supplier of service M/s. Tokyo Electric Power Company(TEPCO) is located in Japan, which is non-taxable territory. The recipient of service M/s. Odisha Power Transmission Corporation Limited is located in India, which is the taxable territory and place of supply of service will be in India. Therefore, the consultancy service rendered by M/s. Tokyo Electric Power Company (TEPCO) to M/s. Odisha Power Transmission Corporation Limited covered under Entry Sl.No.1 of Notification No. 10/2017-Integrated Tax(Rate) dated 28.06.2017. Accordingly, the tax liability rest upon the recipient of the service i.e. M/s. Odisha Power Transmission Corporation Limited, on reverse charge basis. The Applicant M/s. TEPCO is not required to take registration.

Place of supply— In the instant case, applicant is a Japan based Company has entered into an agreement with an Indian entity M/s. Odisha Power Transmission Corporation Limited, whereby consultants have agreed to provide consultancy services relating to Odisha Transmission System Improvement Project Odisha, India.

M/s. TEPCO will perform following activities as enumerated in the agreement;-

(a) Technology transfer for the outdoor GIS Operation and Maintenance,

(b) GIS Operation and Maintenance manual operation from the point of power utility company's view.

M/s. TEPCO will perform all the activities enumerated in the Agreement from Japan(i.e. non-taxable territory) except the physical inspection/review of the project facility & demonstration of O&M procedures.

M/s. Tokyo Electric Power Company, Holding Inc., the Applicant have filed an application on dt.03.07.2020 for Advance Ruling sought for a ruling as to whether the Applicant is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services to be provided to M/s. Odisha Power Transmission Corporation Limited.

The Authority for Advance Ruling passed the ruling as under:-

Supply of service to M/s. OPTCL is not import of service in terms section 2 (11) of the IGST Act. The recipient is not, therefore, liable to pay GST on reverse charge basis in terms of Notification No. 10/2017 -Integrated Tax (Rate) dated 28.06.2017. The Applicant, being the supplied of service in India, is liable to pay tax and therefore, required to take GST registration under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited.

Aggrieved by the above mentioned ruling of the Advance Ruling Authority of Odisha, the Applicant, M/s.Tokyo Electric Power Company filed an appeal before the Odisha Appellate Authority for Advance Ruling.

Held that— This court is of the view that the ruling made by the Authority for Advance Ruling, is not legal & proper as per law. The Applicant M/s. TEPCO is not required to take registration. The tax liability of the services already rendered by M/s. TEPCO lies on the recipient of service (M/s. OPTCL) on reverse charge basis in terms of Entry Sl.No. 1 of Notification No. 10/2017-Integrated Tax (Rate) dated 28.06.2017.