GST applicable on inter-state office services : AAAR uphelds AAR

GST applicable on inter-state office services : AAAR uphelds AAR

The appellate authority for advance ruling upheld the rulings passed under section 98(4) of the GST Act 2017 vide NO.KAR ADRG 15/2018 dated 27/07/2018 i.e. wherein the activities performed by the Employees at India Management Office providing the services in the course of or in relation to employment such as accounting, administrative and IT system management to their distinct units located at other state is treated as taxable supply as per entry 2 of schedule I appended to Act,read with section 7 of the CGST Act 2017.

The Extract of Order is given Below :

34. In View of the above discussions, we uphold the Ruling dated 27.07.2018 passed by the Karnataka Authority for Advance Ruling as under:

The lndia Management Office (IMO) of the Appellant is providing a service to its other distinct units by way of carrying out activities such as accounting, administrative work, etc with the use of the services of the employees working in the IMO, the outcome of which benefits all the other units and such activity is to be treated as a taxable supply in terms of the entry 2 of Schedule I read with Section 7 of the CGST Act