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2021 (12) TMI 1298 - AAR - GSTClassification of services - principal supply or not - services of coaching to students which also includes along with coaching, supply of goods/printed material/test papers, uniform, bags and other goods to students - what shall be the value of service provided by Applicant (REL) to students and by channel / network partner to Applicant (REL)? - eligibility of Input Tax Credit - HELD THAT:- In the instant case, supply of a package consisting of coaching service as well as goods/printed material/test papers, uniform, bags and other goods to students when supplied for a single price is constitute a mixed supply as each of these items can be supplied separately and is not dependent on any other. Whether such supply of coaching services shall be considered as composite supply under section 2(30) of CGST Act, 2017? If yes what shall be the principal supply as per section 2(90) of CGST Act, 2017? - HELD THAT:- In the instant case, the applicant along with coaching services provides goods in the form of uniforms, bags, umbrellas, study material etc. These goods and services can be supplied separately and are not dependent on any other. Thus, the Supply in question shall qualify as 'mixed supply'. Further, it is clear that there are supplies of goods as well as services of various classification (i.e. HSN/SAC) having various tax rates which constitutes the predominant element of a mixed supply. Thus, in the present case, the supply is a mixed supply of goods as well as services and highest rate of tax is 18%. Applicant provides coaching services under a new business model through Channel / Network Partners as per sample agreements attached, containing obligations of Applicant (REL) and such channel / Network partners. According to agreement, the channel / network partner provides the services to the students on behalf of Applicant. In such a situation, who shall be considered as supplier of coaching (REL) service and recipient of such service under the agreement? - HELD THAT:- Where coaching services are provided by the applicant to the students, students shall be regarded as 'recipient' as consideration is payable by the students to the applicant. Similarly, Network partner shall be regarded as provider of service to the applicant (recipient). The place of supply in both the cases (i.e. services provided to the students and service provided to the applicant by the network partner). What shall be the value of service provided by Applicant (REL) to students and by channel / network partner to Applicant (REL)? - HELD THAT:- The applicant has been incurring the cost of goods i.e. printed material test papers, uniform, umbrellas, bags and other goods etc.) and service (coaching service etc.) supplied to the students, therefore, in light of Sections 15 of the Act, the values of goods and value of service shall be the value of supply as charged in lump sum amount by the applicant from the students. Whether the Applicant (REL) shall be eligible to avail Input Tax Credit (ITC) for the supplies? - HELD THAT:- Yes, as per Section 16 of the CGST Act, 2017, the applicant shall be eligible to take ITC of the GST paid on goods or services used or intended to be used in the course or furtherance of business subject to the conditions as prescribed and the provisions of the Section 17 of the CGST Act, 2017.
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