DETERMINATION OF RECIPIENT OF SERVICE, Goods and Services Tax - GST

[PARALIJAYAPALAN ANILKUMAR]

Sir,

XYZ is a Trust Formed by a Group of Educational Institutions For Controlling Their Admission And Related Works is Also Registered U/S. 12AA of The Income Tax Act. XYZ Is Issuing a Common Prospetus for Admission to These Colleges. All of The Member Colleges Will Also Come Under the Definition of Education Institution Under GST Act. XYZ Is Collecting a Nominal Charge on Behalf of The College from The Candidates Through Online Portal, Who Are Interested in Seeking Admissions on the Member Colleges. All The Admission Process of These Colleges is Routed Through the Website of The Trust Where the Trust is finally preparing a Rank List and on The Basis of the Same the Colleges is Completing the Admission Process. Trust Claimed The Service As 0% Relying on Entry Number 66-(B)(Iv)) Of Notification 12/2017- Central Tax(Rate)(28..06..2017) Where it is Stated That" Services Provided To An Educational Institution By Way of Services Related To Admission ......." . Department is of The View here the Service recipient Here is Students Hence the Rate of Tax is 18%. Please Help Me to Clarify issue by Expressing Your Expert Views....

Posts / Replies

[KASTURI SETHI]

Dear Querist,

(i) When we talk of 'For and on behalf of' the college, the college is, de facto, recipient of the service and not the students.

(ii) Hence the department's stand is not correct.

(iii) The emphasis is to be laid on the meaning and essence of the phrase, 'For and on behalf of'.

(iv) Case laws pertaining to pre-GST era on the issue of job-worker can be helpful. The analogy is the same.

.