Page 184 - GSTL_14th May 2020_Vol 36_Part 2

286 GST LAW TIMES [ Vol. 36
6. Findings & Discussion :
6.1 We have considered the submissions made by the Applicant in their
application for advance ruling as well as the submissions made by Sri. Radha
Krishnan D., Director and duly authorised representative of the applicant during
the personal hearing. We have also considered the issues involved, on which ad-
vance ruling is sought by the applicant, and relevant facts.
6.2 At the outset, we would like to state that the provisions of both the
CGST Act and the KGST Act are the same except for certain provisions. There-
fore, unless a mention is specifically made to such dissimilar provisions, a refer-
ence to the CGST Act would also mean a reference to the same provisions under
the KGST Act.
6.3 The Applicant seeks advance ruling in respect of the following
question :
(1) Whether Leasing of Satellite Transponder which is covered under
SAC Code 997319 be charged at 5% GST as per HSN Code 8803 -
Parts Goods of Heading 8802 (Satellites)?
(2) Whether the applicant can levy GST @ 5% for Leasing of Satellite
Transponder Services which is covered under SAC 997319 as per
HSN Code 8803 - parts goods of Heading 8802 (Satellites) from the
date of commencement of the service - Leasing of Satellite Tran-
sponder?
The applicant contends that leasing of satellite transponder is covered under
SAC 997319 and the said transponder is classifiable under Tariff Heading 8803 as
part of satellite, which is classified under Tariff Heading 8802, and hence is taxa-
ble at 5% GST.
6.4 A copy of the Memorandum of Understanding between the De-
partment of Space and the applicant was submitted to explain the business activ-
ity of the applicant. The applicant is a Government of India company under the
administrative control of the Department of Space. The applicant is engaged in a
variety of activities, inter alia, including leasing of space segment capacity on sat-
ellites, leasing of space segment capacity procured from Foreign Service Provid-
ers/Operators, launch services, satellite services, remote sensing and data ser-
vices etc. In respect of Satellite services the applicant is empowered to market
complete satellite systems. Further they are empowered to negotiate with the end
user/customer for finalising the technical, commercial and contractual terms of
the work proposed to be done. Further the applicant is christened as the ‘Con-
tract Manager’ in all the agreements entered by the Department of Space with
users for provision of INSAT transponder capacity with rights and powers to
administer the agreements/MOUs in entirety. The MOU shows that the agree-
ment is in respect of INSAT and GSAT satellites, which are purely communica-
tion satellites.
6.5 In the instant application the applicant, with regard to supply of the
service of leasing/rental of satellite transponders and seeks clarification on the
rate of tax applicable in respect of the said service.
6.6 In the subject matter and in relation to the questions for Ruling we
examine the provisions of Notification No. 8/2017-Integrated Tax (Rate), dated
28-6-2017 and as amended subsequently. Serial Number 17 of the Notification,
Heading 9973, pertains to Leasing or rental services, with or without operator.
Against the aforementioned Heading the entries in Column (3) of the Notifica-
GST LAW TIMES  14th May 2020  184