Myntra Designs (P) Ltd, In re

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The Tax Publishers 2022 TaxPub(GST) 1467 (AAR-Karn) : (2022) 108 ITPJ (G) 0377 AUTHORITY FOR ADVANCE RULINGS, KARNATAKA M.P. RAVI PRASAD T. KIRAN REDDY, MEMBER Myntra Designs (P) Ltd., In re KAR ADRG 33/2022 14 September, 2022 Represented by : Tarun Gulati, Advocate & Authorised Representative Order under section 98(4) of the CGST Act, 2017 & under section 98(4) of the KGST Act, 2017 ORDER M/s. Myntra Designs Private Limited (herein after referred to as 'Applicant' or Myntra Sy. No.8 to 14 & 55, Alyssa Begonia Clover, Embassy Tech Village, Outer Ring Road, Devaribisanahalli, Varthur Hobli, Bengaluru Urban -560 103, having GSTIN 29AAECM9636P1ZJ, have filed an application for Advance Ruling under section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs.5,000 each under the CGST Act & KGST Act. 2.1 The applicant, is a company registered under Companies Act 1956, having its registered office at AKA Tech Park, 3rd Floor, 7th Mile, Krishna Reddy Industrial Area, Hosur Road, Bengaluru-560068 and also registered under the provisions of CGST/KGST Act 2017. The applicant is a major Indian fashion e-commerce company & owns an e-commerce portal (www.myntra.com); engaged in the business of selling of fashion and lifestyle products through the portal. The suppliers of such products, intending to sell their products through the applicant's portal list them on the portal and sell them to customers, who place their order using the applicant's portal. Once order is placed by the customer, the applicant collects money from them towards the purchase of the said order through its portal in the capacity of an e-commerce portal operator and settles the amount payable with the supplier of the said order within a specified period. 2.2 The Applicant, in order to incentivise the customers visiting the portal / e-commerce platform, proposes to run a loyalty program, by way of issuing points to the customers on the basis of purchases, effected by the customers from various sellers on the said platform. The participation in the proposed loyalty program will be on meeting the pre-defined eligibility criteria laid down by the applicant and the same will be subject to acceptance of the applicant's terms and conditions. Further the customer will be bound by the said terms and conditions and any changes or modifications to the same by participating in the said program. 2.3 The loyalty program is sought to be introduced with an object of increasing customer base of the applicant's platform which will lead to increased footfall and sales through the said platform and thus the said loyalty program will directly impact and enhance the amount of commission earned by the Applicant in the course of their business. 3. In view of the above, the applicant has sought advance ruling in respect of the following question. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2022 TaxPub(GST) 1467 (AAR-Karn) : (2022) 108 ITPJ (G) 0377

AUTHORITY FOR ADVANCE RULINGS, KARNATAKA

M.P. RAVI PRASAD T. KIRAN REDDY, MEMBER

Myntra Designs (P) Ltd., In re

KAR ADRG 33/2022

14 September, 2022

Represented by : Tarun Gulati, Advocate & Authorised Representative

Order under section 98(4) of the CGST Act, 2017 & under section 98(4) of the KGST Act, 2017

ORDER

M/s. Myntra Designs Private Limited (herein after referred to as 'Applicant' or Myntra Sy. No.8 to 14 & 55, Alyssa Begonia Clover, Embassy Tech Village, Outer Ring Road, Devaribisanahalli, Varthur Hobli, Bengaluru Urban -560 103, having GSTIN 29AAECM9636P1ZJ, have filed an application for Advance Ruling under section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs.5,000 each under the CGST Act & KGST Act.

2.1 The applicant, is a company registered under Companies Act 1956, having its registered office at AKA Tech Park, 3rd Floor, 7th Mile, Krishna Reddy Industrial Area, Hosur Road, Bengaluru-560068 and also registered under the provisions of CGST/KGST Act 2017. The applicant is a major Indian fashion e-commerce company & owns an e-commerce portal (www.myntra.com); engaged in the business of selling of fashion and lifestyle products through the portal. The suppliers of such products, intending to sell their products through the applicant's portal list them on the portal and sell them to customers, who place their order using the applicant's portal. Once order is placed by the customer, the applicant collects money from them towards the purchase of the said order through its portal in the capacity of an e-commerce portal operator and settles the amount payable with the supplier of the said order within a specified period.

2.2 The Applicant, in order to incentivise the customers visiting the portal / e-commerce platform, proposes to run a loyalty program, by way of issuing points to the customers on the basis of purchases, effected by the customers from various sellers on the said platform. The participation in the proposed loyalty program will be on meeting the pre-defined eligibility criteria laid down by the applicant and the same will be subject to acceptance of the applicant's terms and conditions. Further the customer will be bound by the said terms and conditions and any changes or modifications to the same by participating in the said program.

2.3 The loyalty program is sought to be introduced with an object of increasing customer base of the applicant's platform which will lead to increased footfall and sales through the said platform and thus the said loyalty program will directly impact and enhance the amount of commission earned by the Applicant in the course of their business.

3. In view of the above, the applicant has sought advance ruling in respect of the following question.