Gujarat GST Advance Ruling on Export of Services Jurisdiction
The Authority for Advance Ruling in Gujarat rejected a request to classify services as exports because it cannot determine the place of supply.
- Ruling
- GUJ/GAAR/ADM/2018/33 dated 30.08.2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Take off Academy asked if their test delivery services were export services.
- The Authority rejected the application without deciding the tax issue.
- The Authority stated it lacks legal power to determine the place of supply.
In short
The company asked the Authority for Advance Ruling (AAR) to confirm if their services provided to a foreign client qualified as tax-free exports under the Goods and Services Tax (GST) law. The AAR refused to answer, stating that deciding whether a service is an export requires determining the 'place of supply,' which is a task outside its legal authority.
What has changed
How it worked before
Businesses often assumed that the AAR could provide clarity on whether their specific transactions qualified as exports of services by reviewing all relevant facts.
What has changed
The Authority clarified that it will not rule on matters involving the 'place of supply' of services. This means businesses cannot use the advance ruling process to get a definitive answer on export status if that status depends on where the service is legally supplied.
Who this affects
Service providers in Gujarat who perform work for foreign clients and want to confirm if their income qualifies as a zero-rated export.
An example
A software firm in Gujarat provides coding services to a client in the UK and wants to know if this is an export. They might consider asking the AAR for a ruling. Based on this decision, the AAR would likely reject their application because determining if the service is an export requires deciding the place of supply, which the AAR refuses to do.
What you should do
If you have a similar question, do not assume the AAR will provide an answer. This ruling only binds the company that asked; it is not a general law. Consult a tax professional to evaluate your specific contract and the place of supply rules under the Integrated Goods and Services Tax (IGST) Act.
If you do nothing
If you assume your services are exports without proper confirmation, you risk underpaying GST. If a tax officer later decides the place of supply was actually in India, you will be liable for the unpaid tax, interest, and potential penalties. Relying on an assumption rather than a clear legal position can lead to significant financial exposure.
The terms explained
- Advance Ruling
- A written decision provided by tax authorities to a business regarding the tax treatment of a specific transaction.
- Place of Supply
- The legal location where a service is considered to be provided for tax purposes, which determines whether GST applies.
- Zero-rated export
- A supply of goods or services that is taxed at a rate of zero percent, effectively making the export tax-free.
The ruling in detail
Authority for Advance Ruling
Take Off Academy (Nidhi Rahul Gandhi)
GUJ/GAAR/ADM/2018/33 dated 30.08.2018 · Gujarat
Questions before the authority
- The consideration received from M/s. Pearson VUE for Tax Invoice No. 1 dated 31.07.2017 for conducting test on behalf of M/s. Pearson VUE in India is liable to tax or not?
Facts
The applicant provides facilities for the electronic delivery of tests in India on behalf of M/s. Pearson VUE, including infrastructure, test administration, and candidate verification. The applicant sought an advance ruling on whether the consideration received for these services constitutes an export of services or is otherwise liable to tax. The applicant contends that since the recipient is located outside India and payment is received in foreign exchange, the service qualifies as a zero-rated export.
Ruling
| Question | What the authority ruled |
|---|---|
| Jurisdiction to determine place of supply | Rejected The authority lacks jurisdiction to decide questions regarding the place of supply. |
The Authority for Advance Ruling rejected the application at the admission stage without addressing the merits of the case. It held that it lacks the jurisdiction to determine the place of supply of services, which is a prerequisite for deciding whether the transaction qualifies as an export of services.
Reasoning
The Authority noted that its powers are strictly limited to the issues enumerated in Section 97(2) of the CGST Act, 2017. It determined that the question of whether a service qualifies as an export of service under Section 2(6) of the IGST Act is intrinsically linked to the determination of the place of supply. Because the determination of the place of supply is not included in the list of matters under Section 97(2) that the Authority is empowered to decide, it concluded that it is **lacking jurisdiction** to answer the question. Consequently, the application was rejected under Section 98(2) of the CGST Act.
Provisions relied on
- Section 97(2) of the CGST Act, 2017
- Section 98(2) of the CGST Act, 2017
- Section 2(6) of the IGST Act, 2017
- Section 13 of the IGST Act, 2017
For the practitioner
This ruling serves as a reminder that Advance Ruling Authorities in Gujarat will decline to entertain applications that require the determination of the place of supply, as they view this as outside their statutory mandate. Practitioners should note that this order does not provide any guidance on the taxability of test delivery services but rather highlights a **procedural barrier** for applicants seeking clarity on export status where the place of supply is contested.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/guj.33-2018-19_dt_30.08.18_toa.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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