Page 140 - GSTL_20th August 2020_Vol 39_Part 3

354 GST LAW TIMES [ Vol. 39
2020 (39) G.S.T.L. 354 (A.A.R. - GST - A.P.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
ANDHRA PRADESH
S/Shri D. Ramesh, Member (State Tax) and M. Sreekanth,
Member (Central Tax)
IN RE : DKV ENTERPRISES PVT. LTD.
AAR No. 04/AP/GST/2020, dated 24-2-2020
Export of services - Marketing and Consultancy services to clients out-
side India - Functions required by client carried out in India and payment re-
ceived in convertible foreign exchange - Assessee by providing marketing and
consultancy services facilitating supply of goods, i.e., fluid cracking catalysts
and its additives from its foreign client to its clients in India - Transaction not
done on its own account - Assessee an “intermediary”- Receipt of payment in
foreign exchange not to qualify transaction as export of services - IGST was
payable on such transaction - Sections 2(6), 2(13) and 7(5)(c) of Integrated
Goods and Services Tax Act, 2017. [para 6]
Ruling in favour of department
REPRESENTED BY : Shri S. Chakra Ramana, Authorized Representative,
for the Assessee.
[Order]. - The present application has been filed u/s. 97 of the Central
Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (herein-
after referred to CGST Act and APGST Act respectively) by M/s. DKV Enterpris-
es Private Limited (hereinafter referred to as applicant), registered under the
Goods & Services Tax.
2. The provisions of the CGST Act and APGST Act are identical, except
for certain provisions. Therefore, unless a specific mention of the dissimilar pro-
vision is made, a reference to the CGST Act would also mean a reference to the
same provision under the APGST Act. Further, henceforth, for the purposes of
this Advance Ruling, a reference to such a similar provision under the CGST or
APGST Act would be mentioned as being under the GST Act.
3. Brief facts of the case :
M/s. DKV Enterprises Private Limited, Visakhapatnam (hereinafter ap-
plicant) is an authorized non-exclusive consultant for Grace Products (Singapore)
Pte. Limited for the sale of Fluid Cracking Catalysts and Additives.
Grace Davison is a business unit of W.R. Grace (Singapore) Pte. Ltd., a
Singapore corporation (hereafter “Grace”), with its principal place of business at
501 Orchard Road, #07-02 Wheelock place, Singapore 238880 and it engaged
DKV Enterprises Pvt. Ltd., as its authorized non-exclusive consultant for sale of
its products to the HPCL Visakha Refinery, the CPCL Chennai Refinery and the
IOCL Barauni Refinery (hereinafter the “Territory”) reserving unto itself and its
affiliates the right to sell the products directly in the territory or through other
consultants and distributors.
The applicant claims that only marketing consultancy service is being
done by them in India on behalf of foreign company and their billing is directly
done to foreign company in foreign currency and paid by inward remittance.
More over it is argued that they are neither giving any service to Indian client
nor having any agreement or payment to them. In light of the above the appli-
GST LAW TIMES  20th August 2020  140