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2020 (8) TMI 680 - AAR - GSTExemption from GST - education programme and training offered by the applicant - Benefit of N/N. 12/2017 Central Tax (Rate) dated 28.06.2017 - HELD THAT:- The applicant is not approved / recognised by the Institute of Chartered Accountants of India or Institute of Cost Accountants of India or Institute of Company Secretaries of India or Universities to conduct coaching/ training of students as per the syllabus / curriculum prescribed by them to obtain the qualifications / certificates granted by the institutes / universities. Therefore, the applicant is not covered under the definition of “educational institution” in Para 2 (y) of the exemption notification and hence the services provided by the applicant is not exempted from GST. Classification of service - Service Accounting Code of the service of the applicant under GST law - HELD THAT:- As per the Scheme of Classification of Services notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 the education services provided by the applicant come under SAC - 9992- 999293 - Commercial training and coaching services - As per Explanatory Notes to the Scheme of Classification of Services the service code - 999293 includes any training or coaching provided by any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes. Whether there is any tax liability under GST law on the applicant for collecting and transferring examination fees and other fees of the recognised institutes or universities on behalf of the students studying at the institute of the applicant? - HELD THAT:- The value of taxable supply of goods and / or services is governed by the provisions of Section 15 of the CGST Act, 2017 - As per Section 15 of the CGST Act, 2017 the entire consideration received by the applicant from the recipient of services is liable to GST. However, if in respect of the amount collected as examination fees / other fees the conditions prescribed in Rule 33 of the CGST Rules, 2017 are satisfied then such amount can be excluded from the value of taxable supply as expenditure incurred by the applicant as a pure agent of the recipient of services. Liability of GST - Hostel fee - applicant offers hostel facility to its students at a rate of less than ₹ 200/- per day per person including food and at a monthly rate of maximum ₹ 6000/- - HELD THAT:- The provision of coaching / training provided by the applicant to their students along with hostel facility qualifies as a composite supply as defined in Section 2 (30) of the CGST Act, 2017 and the tax liability on the composite supply has to be determined as per provisions of Section 8 (a) of the CGST Act, 2017. Therefore, the entire supply is to be treated as falling under SAC - 9992- 999293 - Commercial training and coaching services; being the principal supply and will be liable to GST at the rate applicable for the principal supply. Whether there is any tax liability on hostel fees collected from outside students staying at the hostel for study purpose at a rate of ₹ 250/- per day per person including food? - HELD THAT:- The hostel facility provided by the applicant to outside students falls under the Service Classification Code - 9963 - 996322 - Room or unit accommodation services provided by Hostels, Camps, Paying Guest and the like as per the Scheme of Classification of Services notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 - In the instant case as the value of supply of a unit of accommodation in the hostel facility provided by the applicant to outside students is below one thousand rupees per day, the applicant is eligible for the exemption under SI No. 14 of the above notification in respect of the supply. Tax liability on the applicant for selling text books to its students - HELD THAT:- The sale of text books to the students will attract GST as per the schedule of rates notified under Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.
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