The appellant’s institution is not providing any elementary education or pre-school or upto higher secondary level or equivalent, thereby, they would not come under the purview of the ‘educational institution’ as defined in para 2(y)(i) of the Notification No. 12/2017-CT.
Appellate Authority for Advance Ruling — Educational Institute – The appellant is an institute imparting coaching to the students to facilitate them to obtain qualification such as Chartered Accountant, Cost Accountant. Company Secretary, certified Management Accountant, certified Public accountant, Association of Chartered certified Accountant etc. The applicant sought an advance ruling as to whether the education programme and training being offered by the appellant is exempted from GST as imparting of education on the basis of the specific syllabus (curriculum) published by the very same institutes and also facilitating the students to appear for the examinations conducted by the same institutes and also availed from online facilities of the said institutions on the basis of the specific syllabus (curriculum) published by various Universities; whether the education programme and training being offered is exempted from GST since the appellant is giving lecture classes and notes including printed books published by Government-recognized institutions like ACCA, IMA, USA, etc.; what is the Service Accounting Code (SAC) of the appellant’s services, under GST laws; is there any tax liability under GST laws on the appellant [or collecting and transferring examination fees and other fees of the recognized institutes or universities on behalf of students studying al the appellant institute; whether there is any tax liability on the appellant being offering hostel facility to its students at a rate of less than Rs. 200/- per day per person including food; whether there is any tax liability on hostel fees collected from outside students staying at the hostel for study purpose at a rate of Rs. 250/- per day per person including food; whether there is any tax liability on the appellant for selling text books to its students. The AAR ruled that the appellant is not covered under the definition of ‘educational institution’ in Para 2(y) of the Notification 12/2017 CTR dated 28-06-2017, and hence the services provided by the appellant is not exempted from GST. The education services provided by the appellant 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. The entire consideration received by the appellant 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 appellant as a pure-agent of the recipient of services. The provision of coaching/training provided by the appellant to their students along with hostel facility qualifies as a composite supply as defined in Section 2(30) and the tax liability on the composite supply has to be determined as per provisions of Section 8(a) of the Act. As the value of supply of a unit of a accommodation in the hostel facility provided by the appellant to outside students is below one thousand rupees per day, the appellant is eligible for the exemption under Sl. No. 14 of the Notification No. 12/2017-CTR dated 28-06-2017. The sale of text books to the students will attracts GST as per the schedule of rates notified under Notification No. 01/2017-CTR.
Held that:- The Hon’ble Appellate Authority for Advance Ruling upheld the decision of the Advance Ruling Authority, Kerala and rejected the appeal filed by the appellant.
The appellant’s institution is not providing any elementary education or pre-school or upto higher secondary level or equivalent, thereby, they would not come under the purview of the ‘educational institution’ as defined in para 2(y)(i) of the Notification No. 12/2017-CT.
Appellate Authority for Advance Ruling — Educational Institute – The appellant is an institute imparting coaching to the students to facilitate them to obtain qualification such as Chartered Accountant, Cost Accountant. Company Secretary, certified Management Accountant, certified Public accountant, Association of Chartered certified Accountant etc. The applicant sought an advance ruling as to whether the education programme and training being offered by the appellant is exempted from GST as imparting of education on the basis of the specific syllabus (curriculum) published by the very same institutes and also facilitating the students to appear for the examinations conducted by the same institutes and also availed from online facilities of the said institutions on the basis of the specific syllabus (curriculum) published by various Universities; whether the education programme and training being offered is exempted from GST since the appellant is giving lecture classes and notes including printed books published by Government-recognized institutions like ACCA, IMA, USA, etc.; what is the Service Accounting Code (SAC) of the appellant’s services, under GST laws; is there any tax liability under GST laws on the appellant [or collecting and transferring examination fees and other fees of the recognized institutes or universities on behalf of students studying al the appellant institute; whether there is any tax liability on the appellant being offering hostel facility to its students at a rate of less than Rs. 200/- per day per person including food; whether there is any tax liability on hostel fees collected from outside students staying at the hostel for study purpose at a rate of Rs. 250/- per day per person including food; whether there is any tax liability on the appellant for selling text books to its students. The AAR ruled that the appellant is not covered under the definition of ‘educational institution’ in Para 2(y) of the Notification 12/2017 CTR dated 28-06-2017, and hence the services provided by the appellant is not exempted from GST. The education services provided by the appellant 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. The entire consideration received by the appellant 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 appellant as a pure-agent of the recipient of services. The provision of coaching/training provided by the appellant to their students along with hostel facility qualifies as a composite supply as defined in Section 2(30) and the tax liability on the composite supply has to be determined as per provisions of Section 8(a) of the Act. As the value of supply of a unit of a accommodation in the hostel facility provided by the appellant to outside students is below one thousand rupees per day, the appellant is eligible for the exemption under Sl. No. 14 of the Notification No. 12/2017-CTR dated 28-06-2017. The sale of text books to the students will attracts GST as per the schedule of rates notified under Notification No. 01/2017-CTR.
Held that:- The Hon’ble Appellate Authority for Advance Ruling upheld the decision of the Advance Ruling Authority, Kerala and rejected the appeal filed by the appellant.