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2021 (7) TMI 604 - AAR - GSTLevy of GST - supply of service or not - pure agent services - payment made to American Academy of Professional Coders (AAPC) as examination fee for students on behalf of some of the students of the applicant institute - tax liability, when the applicant is collecting the actual examination fee and remitting that amount to AAPC as such without taking any service charges either from students or from AAPC - payment made to AAPC as examination fee on behalf of outside students - applicability of decision of Karnataka Advance Ruling in IN RE: M/S. ARIVU EDUCATIONAL CONSULTANTS PVT. LTD. [2019 (10) TMI 757 - AUTHORITY FOR ADVANCE RULING, KARNATAKA] that such payment of examination fee is not a service chargeable to tax under GST laws. Whether the amount of examination fee collected and paid by the applicant to AAPC satisfy the requirement of Rule 33 of the CGST Rules, 2017 so as to be excluded from the value of taxable supply provided by the applicant? HELD THAT:-In the first situation, the applicant is providing training services in relation to medical coding program to the students enrolled with them to appear in the examination conducted by the AAPC. The applicant is collecting fees for such training provided by them and is discharging GST at the rate of 18% on the fees collected. They are collecting the amount required to be paid as exam fees from the students in addition to their training fees and making payment of the exam fee amount through the online facility to AAPC. The applicant is not collecting any service charge for providing the facility for payment of exam fee either from the students or from AAPC - In the second situation the applicant is providing the same online facilities for payment of fees to students who are appearing for the examination conducted by the AAPC but are not enrolled with them for training. The facility of payment of fees through online platform is extended to interested students who approach them. The examination fees is paid by the applicant to AAPC for the examination and certification services provided by the AAPC to the students in addition to the training and fee payment facilitation service provided to the students by the applicant. Therefore, all the conditions mentioned in the said Rule 33 for exclusion of the amount collected as examination fee from taxable value of services provided by the applicant is satisfied - In order to come within the scope and meaning of supply as defined in Section 7 of the CGST Act the activity / transaction shall be for a consideration in the course or furtherance of business. Though the fee payment facilitation services are provided by the applicant in the course or furtherance of their business as the same is being made without consideration it falls outside the meaning and scope of supply as defined in Section 7 of the CGST Act, 2017. Therefore, the applicant is not liable to pay GST on the fee payment facilitation services provided to outside students without consideration. Scope of Advance Ruling - Applicability of ruling of the Karnataka Authority for Advance Ruling in M/s. Arivu Educational Consultants Private Ltd. - HELD THAT:- The question not being in respect of any of the matters on which advance ruling can be sought, this authority is not having jurisdiction to give ruling on the question.
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