TMI Blog2019 (9) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... their authorized examination centers, invigilation and exam evaluation services, etc. Applicability of Entry No 66 of Notfn. No. 12/2017 - CT (Rate) as amended w.e.f. 25.01.2018 - HELD THAT:- The University of Delhi satisfies the definition of an Educational Institution as required under the GST Laws. We have already found that the subject services supplied by the applicant are composite services where the principal service is conduct of exams. Hence, we find that, under this work order, such services are supplied to an Educational Institution and therefore as per Entry No. 66 mentioned above, the said services will be exempt from payment of tax in respect of this work order. Whether services provided by Applicant can be considered to be a composite supply as defined under Sec. 2(30) of the CGST Act, or a mixed supply u/s 2(74)? - HELD THAT:- The services provided by Applicant can be considered to be a composite supply as defined under Sec. 2(30) of the CGST Act If the services provided by Applicants are considered as composite supply, ether conduct of examination can be considered as principal supply? - HELD THAT:- The conduct of examination can be considered as principa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2 . FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- 1. Attest Testing Services Ltd ( Applicant ), a Company incorporated registered under the Companies Act, 1956 with GSTIN 27AAECA9262B IZU, is engaged in the business of providing exam, certification and other allied services including various types of surveys, assessments, and exam services to various clients including individuals, educational institutions, firms, corporate bodies, government undertakings etc. 2. Applicant has entered into various contracts with customers to provide services which are, conducting online examinations along w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 02/2018 - C.T.(Rate) dated 25.01.2018. The relevant entry for exemption has been tabulated below for ready reference: Entry 66( b) iv before 25.01.2018 Entry 66 (b) iv after 25.01.2018 Services provided - (a) (b) to an educational institution, by way of, (i) . (ii) . (iii) .. (iv) services relating to admission to, or conduct of examination by such institution; up to higher secondary Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Services provided (a) .. (b) to an educational institution, by way of - (i) (ii) (iii) (iv) services relating to admission to, or conduct of examination by such institution; Up to higher secondary Provided that nothing conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finally till providing of results. 8. The scope of term supply has been provided under Sec. 7 of the CGST Act, 2017 to mean and include all forms of supply. Further in case where two or more supplies are provided, Sec. 8 provides for determination of tax liability based on whether such supplies constitute a composite supply or a mixed supply. 9. The term composite supply and mixed supply are defined under section 2(30) and 2(74) CGST Act, 2017 as under: Composite Supply Mixed Supply composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration -Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply: mixed supply means two or more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. Based on above submissions, the Applicants state that the services provided by them are composite supply where the principal supply is conduct of examination. If the above services are considered as composite supply and conduct of examination is considered as principals suppIy whether the exemption provided under entry 66 of Notification 12/2017 - Central Tax (Rate) as amended vide Notification No 02/2018 - Central Tax (Rate.) w.e.f. 25.01.2018 shall be granted? 15. Entry 66 of Not. No 12/2017 as amended w.e.f. 25.01.2018 provides for exemption as under: Services provided - (a) .. (b) to an educational institution, by way of- (i) . (ii). (iii)... (iv) services relating to admission to, or conduct of examination by, such institution; Provided that nothing contained sub-items (i), (ii) and (ii) of item (b) shall apply to an educational institution other than an institution providing services by way of pre school education and education up to higher secondary school or equivalent. 16. The above exemption provides for servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force: (iii) education as a part of an approved vocational education course; 21. Since in the present case, the services are provided to educational institution in spite of the fact that the agreement is done with someone else. It is a considered view of the Applicant that the supply of services are effectively made to the educational institution and accordingly the same should also be exempted from the purview of GST. 22. Similar issue was raised under the VAT law wherein the, legal position regarding non-applicability of VAT/Sales Tax on the main contractor, in case the entire work is subcontracted has already been clarified by the Hon'ble Supreme Court in the case of State of Andhra Pradesh and Others vs. Larsen Toubro and Others [(2008) 17 VST 1 (SC). The Supreme Court held that property in goods gets transferred from sub-contractor to the contractee even though there is no privity of contract between them. There are no two deemed sales in the transactions - one b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement submitted to this Office by the Applicant as well as the list of services mentioned under Para 2 of Statement of Facts, it can be seen that they appear to provide software powered services for conduct of examinations online by using internet as a medium. The Applicants provide services to completely manage the conduct of examinations electronically in three phases: Pre-Examination, Examination and Post-Examination. In the first stage, they offer to facilitate online booking of examination slots by the candidates and question bank management. Furthermore, they facilitate the proctored conduct of online examinations in their authorized examination centers including invigilation services. The Applicants also provide exam evaluation services in order to minimize human error. If these services are described as conduct of examination services, the term is able to capture the entire essence of the package. The payment is made on a 'per-student-exam-hours' basis. i.e. pricing is on the basis of number of students and duration of examination. Therefore, it can be said that these services offered by the Applicants appear to be naturally bundled services which are supplied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, whether the exemption provided under entry 66 of Notification 12/2017 - Central Tax (Rate) as amended vide Notification No 02/2018 - Central Tax (Rate) w.e.f. 25.01.2018 shall be granted? The exemption under entry 66 of Notification 12/2017 - Central Tax (Rate) as amended vide Notification 02/2018 - Central Tax (Rate) with effect from 25.01.2018 will apply to the Applicants, only insofar as the services are provided to educational institutions. The entry as amended is reproduced below. 66 Heading 9992 Services provided (a) by an educational institution to its students, faculty and staff, (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee ; (b) to an educational institution, by way of, (i) transportation of students, faculty and staff, (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of exami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is applicable to the Applicant, whether the exemption shall be applicable in respect of all agreements entered by Applicant or only applicable to services provided to educational institution? It is humbly submitted that the answer of this question depends upon the provision of the following detailed information by the Applicants: (1) List of other services provided by Applicants (2) List of all recipients to whom such services are supplied (3) a list of various courses offered by such recipients (4) other documentary evidences establishing that such recipients fall under the definition of Educational Institution' as mentioned above i.e. those institutions that provide service by way of education as a part of curriculum for obtaining a qualification recognized by any law or as a part of an approved vocational education course. It may be seen that exemption is available only if subject' services are provided to an educational institution. Based on such documentary evidences, once it is established that the Applicants provide Composite Supply of services for conduct of examinations to educational institutions falling within the ambit of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere services are provided to educational institutions which fulfil the criteria given under the definition. Furthermore, the references to case laws related to Works Contract and subcontracting are not applicable to the present case as the nature of services provided is entirely different. 04. HEARING Preliminary hearing in the matter was held on 02.05.2019. Sh. Keval Shah C.A., appeared and requested for admission of their application. Jurisdictional Officer, Ms. Rhea Joshi, Asstt. Commr., CGST, Divn-X, Mumbai East, appeared made written submissions. The application was admitted and called for final hearing on 02.08.2019, Sh. Keval Shah C.A., and Sh. Saroj Parida, V. P. appeared made oral and written submissions. Jurisdictional Officer Ms. Sarita Honrao, Suptt., Range-I, appeared and made written submissions. 05. OBSERVATIONS We have gone through the facts of the case, documents on record and submissions made by the applicant. Applicant has entered into contracts with various customers to provide services viz. conducting online examinations along with pre-exam management processes, post exam m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is considered as principal supply, we need to answer their query as to whether Entry No 66 of Notfn. No. 12/2017 - CT (Rate) as amended w.e.f. 25.01.2018 is applicable to them. As per the said Entry No. 66 services provided to educational institutions becomes exempt under the said Notification. Hence we now reproduce the definition of an 'Educational Institution' as per the GST Laws. As per Notification No. 12/0017-CentraI Tax (Rate) dated 28.06.2017, an Educational Institution means an institution providing services by way of, (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) education as a part of an approved vocational education course; The applicant, in their submissions, has stated that they are engaged in the business of providing exam, certification, other allied services including various types of surveys, assessments, and exam services to various clients including individuals, educational institutions, firms, corporate bodies, government undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Educational Institution and therefore as per Entry No. 66 mentioned above, the said services will be exempt from payment of tax in respect of this work order. We are therefore restricting our reply to their question nos 3 4 only in respect of the above agreements/work order. In respect of their other clients, as submitted by the applicant, they have not given detailed information. In the absence of this information it would not be clear whether they are providing services to educational institutions and therefore this authority is not be able to come to a conclusion on this issue. In view of all the above discussions, we take up the questions raised by the applicant, as Question a) Whether services provided by Applicant can be considered to be a composite supply as defined under Sec. 2(30) of the CGST Act, or a mixed supply Under Sec. 2(74). In view of the discussions made above we find that services provided by Applicant can be considered to be a composite supply as defined under Sec. 2(30) of the CGST Act Question b) If the services provided by Applicants are considered as composite supply, ether conduct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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