1. Home

SGST AAAR

GST – Karnataka AAAR - Supply, Consideration - supply between related persons - Taxability of activities of Liaison Office - whether the activities of the Liaison Office will amount to supply in terms of the GST law and whether such liaison office is liable to be registered for payment of GST - whether the Appellant’s liaison office in India is a ‘person’ who is performing an activity ‘for a consideration’ which is in ‘the course or furtherance of business’ – HELD – The inward remittance in foreign exchange received by the liaison office from its head office for maintaining the office in India cannot be termed as a consideration for the liaison activity. This removes the coverage of the activities of the liaison office from the scope of Section 7(1)(a) of the CGST Act - The Appellant’s Head office in Germany is no doubt a ‘person’ by virtue of clause (h) of Section 2(84) of the CGST Act. However, the liaison office is not recognised as a separate legal entity in India. Under the Companies Act, 2013, every foreign entity establishing its place of business in India by way of a liaison office shall be treated as a foreign company - The liaison office can at best be a geographical extension of the parent Company having the same legal identity as the parent company - the concept of related person arises only when there are two ‘persons’ in existence as per law. In this case, there is only one legal entity i.e. the company in Germany and the liaison office in India is only an extension of the foreign company having no separate identity in India – the lower Authority erred in ruling that the liaison office is an ‘artificial juridical person’ and that the business conducted by it comes within the purview of the definition of business stated in Section 2(17) of the CGST Act - the finding of the lower Authority that the parent Company in Germany and the Appellant liaison office in India are deemed to be related persons is not correct - The activities of the liaison office are not a ‘supply’ under Section 7(1)(a) of the CGST Act and will also not be covered under the ambit of clause 2 of Schedule I of the CGST Act – since there is no taxable supply, there is no requirement for obtaining a GST registration or payment of GST by the appellant – The Advance Authority Ruling is set aside and assessee appeal is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

Handling GST Investigations...
CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?