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TMI Blog2019 (9) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... by the candidates, setting up questions based on question bank management, conduction of online examinations in 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 with pre exam management processes, post exam management processes across different cities & examination centers. Copies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices 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 contained in entry (b) sub-items (i), (ii) and (iii) 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. 5. Copy of Not. No 12/2017 - CT (Rate) dated 28.06.2017 and Notification No 02/2018 Central Tax (Rate) dated 25.01.2018 are attached and marked as Annexure "A-3". 6. After the above referred amendment made w.e.f. 25.01.2018, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. Illustration. A supply of package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; 10. From the above definition, it is evident that point of differentiation between a composite supply and a mixed supply is to identify whether the supply is naturally bundled or not. In case all the supplies ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 services relating to conduct of examination by the educational institution. The purpose interpretation of such entry is not just to provide an exemption to services relating to conduct of examination but also to conduct of examination per se. Further the advance ruling in the case of K.L. Hi Tech Secure Print Limited (2018 (18) G.S.T.L. 112 (AAR - GST)), it was held that printing of pre-examination items, post examination items, scanning & processing of results are integral part of conduct of examination & accordingly shall be exempted under entry 66 as stated above. 17. Similarly in the case of Edutest Solutions Private Limited (2018 (18) G.S.T.L. 77 (AAR GST)), it is also stated that the exemption entry uses the words "relating to" and accordingly widens the scope of the exemption entry and the exemption can be extended even to activities which are not per se conduct of examination. 18. Based on above submissions, the services provided by the Applicant should be covered under the exemption entry 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contractor and contractee and another between the main contractor and the sub-contractor. There is only one deemed sale between the sub-contractor and the contractee. 23. Therefore, based on above submissions the Applicant submit that the contract for supply of services entered with parties other than educational institution shall also be covered within the exemption entry as provided above since the services are provided directly to educational institutions. 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus - Submissions by the Department Whether the services provided by the Applicant can be considered to be a composite supply as defined under section 2(30) of the Central Goods and Services Tax Act, 2017 or a mixed supply defined under section 2(74) of the Central Goods and Services Tax Act, 2017? With respect to the broad scope of services provided by the Applicant, under GST, a composite supply would mean 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Ruling, where the Authority held that services of conducting exams covering sourcing and managing test centres, supplying test material, collecting papers post-test, managing security, managing logistics, printing results, recruiting, training and monitoring invigilators etc were composite supply of services as these did not have independent existence. a) The Applicants M/s Attest Testing Services Ltd have mentioned a list of services provided by them to various institutions as broad scope work under Para 2 of the Statement of Facts in their application. It appears that the services so listed in Para 2 are naturally bundled. However, any other services provided by the Applicant that are not naturally bundled with the conduct of examination, Wit! not constitute a Composite Supply. For the same reasons, it is imperative that a detailed list of all additional services, other than those specifically mentioned above, must be provided by the Applicants for detailed scrutiny. The Applicants have enumerated in the application certain services provided using the term "Broad scope of work". However, in order to avoid giving a blanket exemption to any Applicant, the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation and education up to higher secondary school or equivalent. Provided further that nothing contained in sub-item (v). of item (6) Shall apply to an institution providing services by way of,- (i) pre school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course Applicant contends that pursuant to the deletion of the words 'upto higher secondary' from the above mentioned entry, the services provided by them to education institutions becomes exempt under the Notification. As per Notification No. 12/2017-CentraI Tax (Rate) dated 28.06.2017, "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 recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; Thus, a detailed scrutiny must be undertaken as to whether the recipients to whom such services are provided fall under the above mentioned definition. It is also pertinent to point out t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the exemption under Entry 66 of Notfn 12/2017 - C. T. (Rate) as amended vide Notfn 02/2018 - Central Tax (Rate) with effect from 25.01.2018 is reproduced below: "Services provided- (b) to an educational institution, by way of,- (iv) services relating to admission to, or conduct of examination by, such institution; " There is no dispute about the fact that applicant M/s Attest Testing Services Ltd. is not an educational institution. The benefit of the notification is available only if the subject services are provided to an educational institution. Therefore, it is the Department's submission that only services that are provided directly to the educational institutions falling within the ambit of the above definition may be considered exempt under this notification. The Applicant's contention that exemption may also be extended to the provision of services to those entities who finally supply such services to educational institutions is untenable in law. Attention may be brought to the Apex Court judgment in Commissioner of Customs (Import), Mumbai vs M/s Dilip Kumar and Co. (dated 30.07.2018) where a Constitution Bench held, "(1) Exemption notification sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets to eliminate risk of malpractices on the basis of Question bank i.e. database of questions, provided by their clients, and evaluating the exam (Applicant will manage invigilation process with a supervisor at each center and shall generate results of such exams and provide the results to the client in desired format). Fees are charged based on exam hours booked irrespective of the number of students appearing for the exams. They have submitted that they have discharged GST till 25.01.2018, on such services provided by them and have contended that since 25.01.2018, in view of the amendment made to the Notification No 12/2017 - Central tax (Rate) dated 28.06.2017 vide Notification No 02/2018 - Central Tax (Rate) dated 25.01.2018 the relevant entry No. 66 of the said Notification provides for exemption to the such services mentioned above. From the submissions made by the applicant we have no doubt that the subject services provided by them satisfy the definition of 'Composite Services in as much as they provide services to completely manage the conduct of examinations electronically like facilitation of online booking of examination slots by the candidates, setting up quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of one agreement with The Institute of Chartered Financial Analysts of India University, Sikkim and a Work Order issued by the University of Delhi in respect of such above mentioned services rendered by them. The same are discussed as under : - ARGEEMENT DATED 01.07.2012 WITH THE INSTITUTE OF CHARTERED FINANCIAL ANALYSTS OF INDIA UNIVERSITY SIKKIM. We have perused the said agreement and find that in Para I it is mentioned that "This Agreement......shall come into force on 01.11.2011 valid for A period of 40 months, ending 28.02.2015" We find that the subject agreement has already expired even prior to introduction of the GST Laws and is therefore neither a transaction being undertaken by the applicant nor a transaction proposed to be taken by the applicant. Hence we refrain from discussing the issue raised by the applicant in respect of this agreement. PURCHASE/WORK ORDER NO. 31 DATED 17.05.2018 ISSUED BY THE UNIVERSITY OF DELHI. The scope of work includes conduct of entrance examination for admission to undergraduate, all Post Graduate, M. Phil and Ph. D courses, to provide consultancy, training and manpower support to handle the entire Entrance Test, 2018 of the Univer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under Entry No. 66 will be available to them only in respect of the Work Order issued by the University of Delhi, as discussed above. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows . ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA- 07/2019-20/B-99 Mumbai, dt. 23/08/2019 For reasons as discussed in the body of the order, the questions are answered thus - Question a):- Whether the services provided by the Applicant can be considered to be a composite supply as defined under section 2(30) of the CGST Act, 2017 or a mixed supply defined under section 2(74) of the CGST Act, 2017? Answer :- The subject services provided by the Applicant can be considered to be a composite supply as defined under section 2(30) of the CGST Act, 2017 Question b):- If the services provided by Applicants are considered as composite supply, whether conduct of examination can be considered as principal supply? Answer :- Answered in the affirmative. Question c) If the above services are considered as composite supply and conduct of examination is considered as pr ..... 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