Breif Issue :

Facts & Issue Of The Case -

• The applicant “Syngenta Bioscience Private Limited” is part of Syngenta Group which is headquartered in Switzerland and presently engaged in providing the R&D services on the agrochemical products to group companies across the globe.
• The issue of which clarification is being sought is with respect to the T&E division and its activities are summarized below:

i. T&E Analytical division performs testing on samples of goods received from persons located outside India.

ii. The goods received -from overseas persons are developed products which are either launched or due to be launched in the market for the customers.

iii. The testing of goods is carried out by Applicant with the objective of providing a test report with the results to the overseas customer. The test report is sent to the overseas customer by Applicant either along with the goods received for testing or without such goods. The test report provided by the Applicant is used in various R&D operations by the overseas customers.

The applicant sought clarification on the following issues:

1. Whether the activity of on the technical testing services carried out by the applicant be treated as ‘zero-rated supply’?

2. If the answer to the aforesaid question is negative, then is the applicant liable to pay IGST on the said ‘supply’?