TMI Blog2020 (9) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant also undertakes not to conduct, run and engage in any other courses or activities else than licensed in this agreement, that the company possess and franchisees; the applicant shall only use the application forms, receipt books, fees lists etc. supplied by the Company and shall not attempt to print its own material. All the payments from the students are collected in name of the applicant on receipts printed by the Company. The applicant also collects Student Registration fee from every student on behalf of the Company and remits the same to the Company. Thus, the applicant is only authorized to supply the goods and service under the brand name of ALOHA and cannot supply the other goods and service. Hence applicant is supplying the goods and service on behalf of the taxable person i.e. Xplore Knowledge Resources LLP - applicant covers under the Sr. No. (vii) of the Section 24 of CGST Act, 2017. Therefore, applicant is liable for taking GST registration. Since applicant is liable for GST registration, he is required to pay GST on supply of goods and services. - GUJ/GAAR/R/28/2020 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2019/AR/01) - - - Dated:- 2-7-2020 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue involved, on which advance ruling is sought by the applicant, relevant facts the applicant s interpretation of law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act. 9. The applicant has stated that they are partnership firm and have taken a franchisee of ALOHA from EXPLORE KNOWLEDGE RESOURCES LLP, Rajkot. Further, they submitted that they sell their product and provide service under the brand name of ALOHA to customers. They sell products like books, stationary etc. without having profit margin under the brand name of ALOHA . They offer various courses like Mental Arithmetic, English Smart to the students under the brand name of ALOHA . All receipts of product sale or services are being taken in the name of their partnership firm PATRATOR and deposit the fees in their partnership firm bank account. At the end of every fifteen days, they pay royalty to their franchisor, KNOWLEDGE RESOURCES LLP, Raj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day. (3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession. (4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal. Explanation.- For the purposes of this section,- i. the expression aggregate turnover shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals; ii. the supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.4 Section 24 of CGST Act, 2017 deals with the category of persons who are compulsory liable to take GST Registration. Section 24 of CGST Act, 2017 is produced as under: Section 24 Compulsory GST Registration Notwithstanding anything contained in Sec. 22(1), the following categories of persons shall be required to be registered under this Act: (i) persons making any inter-State taxable supply; (ii) casual taxable persons making taxable supply; (iii) persons who are required to pay tax under reverse charge; (iv) person who are required to pay tax under sub-section (5) of section 9; (v) non-resident taxable persons making taxable supply; (vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act; (vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise; (viii) Input Service Distributor, whether or not separately registered under this Act; (ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A. The Franchisee shall allow the authorized personnel of the company at all times to inspect the books, records, software data, receipts, application forms, reports and registers kept by the Franchisee and to use any information contained therein for the benefit of the Company. B. The Franchisee shall permit the representatives of the Company to conduct spot checks on the Center(s) in order to ensure that the Franchisee is functioning in compliance to the Company s instructions rules regulations and as per the directions of the Company. C. The Franchisee agrees that the Company or its agents shall have the right to examine and/or audit the Books of Accounts of the Franchisee all the materials in center premise or elsewhere and all the entries of the software, to verify the figures reported. D (v) If the representative performing internal audit and or due diligence suggested any changes in the mode and maintenance of accounts and records in respect of the business, such suggestions shall be implemented by the Franchisee on the instructions of the Company. X. EVALUATION A, The Franchisee shall perform as per the performance Targets set out by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Q. All the payments from the students are collected in name of the Franchisee on receipts printed by the Company. XII. STATUTORY CLUASES OTHER OBLIGATIONS OF FRANCHISEE: N. The Franchisee shall not use any other course material other than those issued by the Company, nor shall the Franchisee adopt any other methodology or technical know-how, other than the Company s while imparting education to the students. U. The Franchisee shall use the center premises exclusively for activities related to company s products only. No other activity related to any other business or training should be done without prior written approval of the company. 9.5 On going through the said clauses of the agreement, it is observed that the applicant is required to fulfill the requirements of infrastructure and manpower before commencement of operations of the Centre as per the instructions of the Company and will continue to possess it during the whole tenure and it s renewal of this contract; the applicant shall permit the representatives of the Company to conduct spot checks in order to ensure that the applicant is functioning in compliance to the Company s instruction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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