GST: E-way bill generation maintains momentum in August, 2021

GST: E-way bill generation maintains momentum in August, 2021

Aug 25, 2021

In M/s. Hilti Manufacturing India Pvt. Ltd. [ADVANCE RULING NO. GUJ/GAAR/R/26/2021 dated July 09, 2021], M/s. Hilti Manufacturing India Pvt. Ltd (“the Applicant”) has sought a clarification on the liability to pay Goods and Services Tax (“GST”) on Research and Development (“R&D”) Sciences on goods physically made available by foreign entities. The Hon’ble Gujarat Authority of Advance Ruling (“GAAR”) observed that the Applicant having a contract with Service Receiver (“Recipient”) is of the nature wherein the goods being sent to the Applicant are put through various tests and R&D activities and the results of which are sent back to the Recipient. Noted that, the situation is covered under Section 13(3)(a) of the Integrated Goods and Services Tax Act, 2017 (“IGST Act”) which provides that the Place of Supply (“PoS”) of services being the location where the services are performed i.e. location of the Applicant where performance of service is undertaken in the current case. Further noted that the services provided by the applicant are in the form of R&D activity undertaken on the sample goods which are made physically available by the recipient to the applicant in order to enable the applicant to provide the services. Therefore, PoS being the location of Applicant that is, in Gujarat, making the transaction liable to GST accordingly.