Page 113 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : RAJESH RAMA VARMA 39
There is also no mention anywhere in the consultancy agreement that the
applicant has to provide services to the clients of Doyen. Merely because, the ap-
plicant is in email correspondence with the employees of clients of Doyen does
not mean that he is ‘carrying on the business of supply of services’ on behalf of
Doyen, as is required as per definition of ‘agent’ in Section 2(5).
Thus, the applicant is providing services to Doyen and not to their clients
either directly or as an agent.
7.3 It is now required to decide the applicability of GST to the services
provided to Doyen by the applicant.
Section 7 of CGST/TNGST Act states :
7.(1) for the purposes of this Act, the expression “supply” includes -
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, license, rental, lease or disposal
made or agreed to be made for a consideration by a person in
the course or furtherance of business;
(b) import of services for a consideration whether or not in the
course or furtherance of business; and
(c) the activities specified in Schedule I, made or agreed to be
made without a consideration;
(1A) where certain activities or transactions constitute a supply in accord-
ance with the provisions of sub-section (1), they shall be treated either as
supply of goods or supply of services as referred to in Schedule II.;
Schedule II states :
5. Supply of services
The following shall be treated as supply of services, namely :-
(d) development, design, programming, customization, adap-
tation, upgradation, enhancement, implementation of infor-
mation technology software :
In the instant case, the applicant provides IT software related consulting services
in the area of Oracle ERP w.r.t. Oracle Financials to Doyen for a consultancy fee
laid down in the consultancy agreement. Therefore, the said activity satisfies the
conditions of Section 7(1)(a) and is a supply under GST. As per Para 5 of Sched-
ule II read with Section 7(1A), this supply is a supply of services, Therefore, the
applicant is liable to pay GST at appropriate rates on the supply of consultancy
services to Doyen.
7.4 In respect of the questions whether, such supply of services is ‘ex-
port of services’. ‘zero-rated supply’ and eligibility of refund, this authority can-
not answer the questions as they are not covered in Section 97(2) of the
CGST/TNGST Act.
8. In view of the above, we rule as under
RULING
(1) The services provided by the applicant to Doyen Systems Private
Limited is a supply of services under CGST/TNGST Act and the
applicant is liable to pay relevant tax on such supply.
(2) The other questions raised are not answered as the same is not in
the ambit of this authority as per Section 97(2) of the Act.
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GST LAW TIMES  6th August 2020  113