TMI Blog2022 (2) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... tors Eduserv does not constitute employee-employer relation - thus the activity or transaction is not covered under entry no. 1 of the Schedule III of the act and resulted in a 'supply of service' as per Section 7 of the CGST Act, 2017 and tax will be leviable under section 9 of the CGST Act, 2017 and valuation thereof will be done as per section 15 of the CGST Act, 2017. The services under consideration will not be covered under entry 1 of schedule III of RGST/ CGST Act, 2017. - RAJ/AAR/2021-22/28 - - - Dated:- 25-10-2021 - J.P. MEENA AND M. S. KAVIA, MEMBER Present for the applicant : CA, Mohammad Azharuddin Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST 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 sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable or not on the service in question. Statement containing the applicant's interpretation of law and/or facts, as the case may be, in respect of the aforesaid question(s) (i.e. applicant's view point and submissions on issues on which the advance ruling is sought). 1. The charging section 9(1) of BGST/ CGST Act provides for levy and collection of state tax and central tax on all inter-State and intra-State supplies of goods and services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council which will be collected in such manner as may be prescribed and shall be paid by the taxable person. As noted above, the taxable event under GST law shall be the supply of goods or services or both made for consideration in the course or furtherance of business. Thus, determining whether or not a transaction falls under the meaning of supply, it is important to understand the meaning of supply in the light of GST law. Accordingly, supply has been defined under section 7 of the RGST/ CGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant clause of the agreement dated 10.02.2020 is reproduced below for your reference:- Section 13 - Miscellaneous Provisions 13.1 No Agency: This agreement is entered into on a principal to principal'' basis and the parties are independent of each other, and nothing contained herein is intended to or shall be deemed to create any partnership, joint venture, employment or relationship of principal and agent between the parties hereto or between the First Party and Service Provider It is worthwhile to note that the new offer also contains similar terms and conditions as stipulated in section 13 mentioned above. However, we have been advised that the service provided are in the nature of employer and employee. Therefore, it will be out of the purviews of GST Act as per entry 1 of schedule III read with section 7(2). B. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:- Whether the services under consideration will be covered under entry 1 of schedule III of RGST/ CGST Act or not? C. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 12.10.2021. CA, Mohammad Azharuddin (Authorised Representative) of applicant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of [sub-sections (1), (1 A) and (2)], the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as,- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. 4.2 Section 9 of the CGST Act, 2017:- 9. Levy collection- (1) Subject to the provisions of sub-section (2), re shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. 4.3 Section 15 of the CGST Act, 2017 15. Value of Taxable Supply.- (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to on a principal to principal basis and there is no scene in respect of any employment. Hence, it can be said that there no Service is provided by an employee to the employer in the course of or in relation to any employment in the instant case. Thus, the provisions of entry no. 1 of schedule III of the GST act are not applicable. 6. In view of the above relevant legal provisions, we are of the view that:- * Explanation to section 15 defines the related person. * Schedule I of the GST Act deem every transaction between the related or distinct person as a supply, even if there is no consideration. * Schedule III of the GST Act excludes the supply by an employee to the employer from the GST scope. It deems it as no supply. 7. In the instant case, the applicant intends to provide Educational and Training Services to its service recipient i.e. M/s Mentors Eduserv on the basis of section 13 of the agreement dated 10.02.2020. on gone through the section 13 of the agreement, we find that there is no establishment of term 'employment'. Hence, activity or transaction between service provider i.e. applicant and service receiver i.e. M/s Mentors Eduserv does no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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