Printing service received locally is not export,even of consideration received in foreign currency

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Swapna Printing Works Private Ltd

The Applicant, stated to be engaged primarily in the business of printing, seeks a ruling on whether the activities undertaken by procuring orders from a foreign buyer to print texts and thereafter deliver them to various places in India is a taxable transaction. Advance Ruling is admissible on this question under section 97(2)(e) of the GST Act.

The Applicant further submits that the question raised in the Application is neither decided by nor pending for decision before any authority under any provisions of the GST Act. The officer concerned raises no objection to the admission of the Application. Thus, the Application is admitted.

On this issue, Authority for Advance Ruling-West Bengal , ruled that ,”In the context of a supply involving payment of consideration, a “recipient” of supply of goods or services means the person who is liable to pay the consideration and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied.

The “recipient” is so defined as to make separation impossible between the person to whom the supply is made and the one liable to pay the consideration. When no consideration is involved, as under clause (c) of the above section, the recipient can only be the person to whom the service is rendered. The person who receives the supply in India should, therefore, be considered as the recipient, being inseparable from the foreign buyer as far as the Applicant’s supply is concerned. It follows from the discussion that the Applicant supplies the composite printing service to the recipient located in India. Such supplies are not, therefore, export of services within the meaning of section 2(6) of the IGST Act, 2017″.

The details of the case can be read here :Case file

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