Page 94 - GSTL_23rd April 2020_Vol 35_Part 4

420 GST LAW TIMES [ Vol. 35
State Government which would bear its liabilities for salary and other grants and
that the Principal AG (A&E), Kolkata, approves NKDA to operate a local fund.
4.10 The above discussion establishes that NKDA, a statutory authority
discharging municipal functions (although not a municipality as required to be
constituted under Art. 243Q of the Constitution) within the territorial jurisdiction
of New Town, Kolkata, is legally entitled to and entrusted by the State Govern-
ment with the control or management of a local fund as defined in TR 6.29 of
WBTR. It is, therefore, a local authority under Section 2(69)(c) of the GST Act and
entitled to the exemptions available under the Exemption Notification on the
services it supplies.
5. Based on the above discussion, we rule as under :
RULING
6. The Applicant is a local authority within the meaning of Section
2(69)(c) of the GST Act and is entitled to the exemptions available on the services
it supplies in terms of the various entries of Notification No. 12/2017-Central Tax
(Rate), dated 28-6-2017 (corresponding State Notification No. 1136-FT, dated
28-6-2017), as amended time to time.
7. The question of liability for registration is not taken up for ruling, as
the Applicant has not pursued the matter in its written submission and in course
of the personal hearing.
8. This Ruling is valid subject to the provisions under Section 103 until
and unless declared void under Section 104(1) of the GST Act.

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2020 (35) G.S.T.L. 420 (A.A.R. - GST - Kar.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
Dr. Ravi Prasad M.P., Member (State Tax) and Shri Mashhood ur Rehman
Farooqui, Member (Central Tax)
IN RE : FOM ALUMINIUM MACHINES PVT. LTD.
Advance Ruling No. KAR ADRG 09/2020, dated 12-3-2020
Export of services - IGST - Reverse Charge Mechanism (RCM) - Export
of services by applicant, if any, do not attract IGST under RCM, as the appli-
cant becomes supplier for the said services whereas Reverse Charge Mecha-
nism shifts the tax liability on to the receiver - Sections 2(6) and 5 of Integrated
Goods and Services Tax Act, 2017. [para 6.4(1)]
Intermediary services - Applicant is the sole agent of their parent com-
pany in Italy for the SAARC area and gets commission for sale orders booked
for Advanced Automated CNC Machines - “Agency Agreement” also entered
into with another company in Italy to promote and develop the sale of ma-
chines produced by supplier for the markets in SAARC area - Applicant re-
ceives a tax included lump sum payment to be paid quarterly and in addition
also gets a commission of 5% on the first five machines sold - Applicant, there-
fore, undoubtedly an agent of the parent company Fom Industrie s.r.l, Italy as

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