1. GOODS AND SERVICE TAX (GST)
IMPACT ON
Electronic services
V.Raghuraman

2. IMPORTANT DEFINITIONS` Electronic Commerce Operator
44) “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;
(45) “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce
Services
(102) “services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;
(110) “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means
V.Raghuraman

3. IMPORTANT DEFINITIONS`
(77) Non Resident Taxable Person means any person who occasionally undertakes transactions of supply of goods or services or both whether as principal or agent or in any other capacity, but who does not has a fixed place of business or residence in India
IGST definitions
(17) “online information and database access or retrieval services” means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and includes electronic services such as,––
(i) advertising on the internet; (ii) providing cloud services;
(iii) provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet;
(iv) providing data or information, retrievable or otherwise, to any person in electronic form through a computer network;
(v) online supplies of digital content (movies, television shows, music and the like);
(vi) digital data storage; and (vii) online gaming;
V.Raghuraman

4. Definitions
(16) “non-taxable online recipient” means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory.
Explanation.––For the purposes of this clause, the expression “governmental authority” means an authority or a board or any other body,––
(i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government,
 with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution
V.Raghuraman

5. GST Rates Sl. No. Heading Description of service GST Rate 1 9973
(i) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods other than Information Technology software. 12 2
(ii) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of Information Technology software. 18 3
9981
Research and development services. 4
9984
Telecommunications, broadcasting and information supply services. 5
9961&2
Services in wholesale trade and retail trade
V.Raghuraman

6. E-Commerce Taxability
Supply through
E-Commerce Operator
Services
Goods
Notified under Section 9(5)
Where Consideration is collected by E-COM operator Y
Tax payable by E-Com operator Y N
NO TCS
TCS
V.Raghuraman

7. Online information and database access or retrieval services (OIDARS)
[location of supplier]
Non taxable territory
Taxable territory
TO pay GST in normal way
Recipient
Non taxable person
Person liable to pay
Taxable person
Supplier
Agent of Supplier
Import of services for taxable person
Intermediary
Person appointed for the purpose of payment
V.Raghuraman 7

8. Compulsory registration applicable to service provider
ODIARS
Compulsory registration applicable to service provider
NON RESIDENT Supplier to take SINGLE registration
Vide Notification No. 2/2017 Integrated Tax dt Principal Commissioner of Central Tax, Bengaluru West has been notified as the registration authority for ODIARS
Cannot avail input tax credit
V.Raghuraman

9. Online training – Location of the recipient
PLACE OF SUPPLY
Online training – Location of the recipient
Telecommunication, data transfer, broadcasting, cable and direct home services- location of the land line/ address of the recipient subscriber
Banking-
Supplier and recipient both are located in India- location of the recipient
Either Supplier or recipient is located outside India and the services are to account holder- location of the supplier
Intermediary service-
Either Supplier or recipient is located outside India - location of the supplier
OIDARS-
Location of the recipient
V.Raghuraman

10. Composite & Mixed supply
Description
Composite Supply
Mixed Supply
Naturally bundled
Yes No
Supplied together
Can be supplied separately
One is predominant supply for recipient
Other supply is not ‘aim in itself’ of recipient
Each supply priced separately
All supplies are goods
All supplies are services
One supply is goods and other supply is services
V.Raghuraman

11. Maintenance services
9987 Maintenance, repair and installation services except construction will attract 18% tax.
Concept of composite and mixed supply in maintenance services.
V.Raghuraman

12. Sl.No
Category of supply of services
Supplier of service
Recepient of service 1.
Supply of Services by a goods transport agency
Goods Transport agency service(GTA)
(a) Any factory
(b) any society
(c) any co-operative society
(d) any person registered under the CGST,IGST,SGST,UGST
(e) any body corporate
(f) any partnership firm whether registered or not
(g) any casual taxable person;
located in the taxable territory 2
Services supplied by an individual advocate including a senior advocate by way of representational services to any business entity located in the taxable territory
An individual advocate including a senior advocate or firm of advocates.
Any business entity located in the taxable territory

13. Sl.No
Category of supply of services
Supplier of service
Recepient of service 3.
Services supplied by an arbitral tribunal to a business entity.
An arbitral tribunal.
Any business entity located in the taxable territory. 4.
Services provided by way of sponsorship to any body corporate or partnership firm.
Any person
Any body corporate or partnership firm located in the taxable territory. 5.
Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, -
(1) renting of immovable property, and
(2) services specified below-
(i) services by the Department of Posts
Central Government, State Government, Union territory or local authority

14. Sl.No
Category of supply of services
Supplier of service
Recepient of service
agency services to central or state government or union territory or local authority
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers 6.
Services supplied by a director of a company or a body corporate to the said company or the body corporate.
A director of a company or a body corporate
The company or a body corporate located in the taxable territory.

15. Sl.No
Category of supply of services
Supplier of service
Recepient of service 7.
Services supplied by an insurance agent to any person carrying on insurance business.
An insurance agent
Any person carrying on insurance business, located in the taxable territory 8.
Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company.
A recovery agent
A banking company or a financial institution or a non-banking financial company, located in the taxable territory.

16. Sl.No
Category of supply of services
Supplier of service
Recepient of service 9.
Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.
Author or music composer, photographer, artist, or the like
Publisher, music company, producer or the like, located in the taxable territory.
The Central government ,hereby exempts intra state supplies of goods / services or both received by a registered person from any supplier, who is not registered, under sub-section (4) of section 9 of CGST Act.
However the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day.

17. B.Com, FCA, LLB, ACS, Grad.CWA
Thank You
V. RAGHURAMAN, Advocate
B.Com, FCA, LLB, ACS, Grad.CWA
id :
V.Raghuraman