The applicant, M/s New Space India Limited is a commercial arm of Indian Space Research Organisation (ISRO) and is a Government of India Company (CPSE) under the administrative control of the Department of Space (DOS).
They entered into an agreement MOU with DOS for leasing of Satellite Transponder capacity to a service providers as a part of the mandate to carry out production and marketing of space-based services.
The applicant filed an application who was seeking clarification on the issue that whether Leasing of Satellite Transponder which is covered under SAC Code 997319 be charged @5% GST, as per HSN Code 8803.
The other issue the applicant put was, 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 Transponder.
The authority held that @5% Goods and Service Tax (GST) applicable on leasing of satellite transponder which involves the transfer of title in goods and not on the leasing of satellite transponder services where the GST is already charged and collected under any invoice.
Any excess collection of tax needs to be paid to the government within the specified time and the mistake shall only be collected through a debit note credit note mechanism, if applicable and subjected to such conditions and within such time as specified in Section 34 of CGST Act, 2017.