TMI Blog2020 (8) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, Certified Management Accountant, Certified Public Accountant, Association of Chartered Certified Accountant etc. The applicant requested advance ruling on the following: 1. Whether the education programme and training being offered by the applicant is exempted from GST as imparting of education since the applicant is giving lecture classes and notes including printed books published by Govt.-recognized institutes, on the basis of the specific syllabus (curriculum) published by the very same institutes formed under Acts of Parliament and also facilitating the students to appear for the examinations conducted by the same institutes. 2. Whether the education programme and training being offered by the applicant is exempted from GST as imparting of education since the applicant is giving lecture classes and notes including printed books published by Government-recognized institutions like Universities and also availed from online facilities of the said institutions, on the basis of the specific syllabus (curriculum) published by various Universities including Mahatma Gandhi University, formed under Acts of State Legislature. 3. Whether the education programme and trai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2017. 4. In ITM International Pvt. Ltd v, Commissioner of Service Tax, Delhi [2017 (7) G.S.T.L 448 (Tri-Del)] = 2017 (11) TMI 1230 - CESTAT NEW DELHI (LB) the Hon'ble CESTAT, Principal Bench had passed an order holding that educational qualifications issued by foreign institutes which are recognized by Government. of India, are also to be treated as 'certificate recognized by law' for taxation purposes. Accordingly the applicant's activities fall within the purview of courses recognized by law and is exempted from tax. Moreover in the case of M/s. Emerge Vocational Skills Pvt. Ltd, the Karnataka Authority for Advance Ruling vide ruling No. KAR ADRG 20/2018 dated 13.08.2018 = 2018 (9) TMI 1041 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA observed that the services provided for affiliation to specified universities and providing degree courses to students under related curriculum to its students are exempted vide entry 66 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 subject to condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant pointed out that the Hostel Fees paid by the students is exempted since the per day charges including food is not more than ₹ 1000/-. 7. The applicant sells text books and notes pertaining to the courses with very slight margin to ensure that their students get them hassle-free and at reduced prices than that offered by outside sources like book shops or shopping websites. It is argued that sale of text books of universities and other publishers to their students or outside students is exempt from tax liability. 8. The matter was examined in detail. The applicant is engaged in conducting educational programme to students for obtaining qualifications like Chartered Accountancy, Cost Accountancy, Company Secretary, Certified Management Accountant, Certified Public Accountant, Association of Chartered Certified Accountant etc. The primary issue to be considered is whether the education programme and training offered by the applicant is exempt from GST. 9. The exemption for educational services are contained in Si No. 66 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 which reads as follows; Si No. 66 - Heading - 9992 or 9963 - Services provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the Service Accounting Code of the service of the applicant under GST law. 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. 12. 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. 13. Next issue to be clarified is that 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. The value of taxable supply of goods and / or services is governed by the provisions of Section 15 of the CGST Act, 2017. The provisions of sub - section (2) of Section 15 are re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both so procured or supplied as pure agent of the recipient of supply; (c) does not use for his own interest such goods or services so procured; and (d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. 14. 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. 15. Another issue sought for clarification is that the 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/-. Whether there is any tax liability on such hostel fee. Section 2 (30) of the CGST Act, 2017 defines composite supply as follows; (30) composite supply means a supply made by a taxable person t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. 20. It is also sought for clarification regarding the tax liability on the applicant for selling text books to its students. 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. In view of the observations stated above, the following rulings are issued: 1) Whether the education programme and training being offered by the applicant is exempted from GST as imparting of education since the applicant is giving lecture classes and notes including printed books published by Govt.-recognized institutes, on the basis of the specific syllabus (curriculum) published by the very same institutes formed under Acts of Parliament and also facilitating the students to appear for the examinations conducted by the same institutes. The applicant is not covered under the definition of educational institution in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Is there any tax liability under GST laws on the applicant for collecting and transferring examination fees and other fees of the recognized institutes or universities on behalf of students studying at the applicant institute? 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. 6) The 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/-. Whether there is any tax liability on such hostel etc. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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