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TMI Blog2020 (8) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ACCA, IMA USA, etc and also availed from online facilities of the said institutions, on the basis of the specific syllabus (curriculum) published by international institutions like ACCA, IMA USA, etc which are approved by the Government of India. 4. What is the Service Accounting Code (SAC) of the applicant's services, under GST law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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. It is common practice for institutions like the applicant to offer university-recognized education simultaneously with training for the professional qualifications, as that helps students to obtain graduation simultaneously with professional studies, and also because the study materials for both are fundamentally similar. Again Hon'ble High Court in The Malappuram District Parallel College Vs Union of India [WPC.No.728 of 2005] = 2005 (8) TMI 336 - HIGH COURT OF KERALA and Union of India Vs The Kasaragod District Parallel College & another [2013 (3) KHC 509] = 2014 (9) TMI 385 - KERALA HIGH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; (b) to an educational institution, by way of, - (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; (v) supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 reproduced below; "(2) The value of supply shall include - (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of services. 15. Another issue sought for clarification is that the applicant offers hostel facility to its students at a rate of less than Rs. 200/- per day per person including food and at a monthly rate of maximum Rs. 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 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 other in the ordinary course of business, one of which is a principal supply." 16. Section 8 of the CGST Act, 2017 contains the provisions of tax liability on composite and mixed supplies. Section 8 is reproduced below; "SECTION 8. Tax liability on composite and mixed supplies. - The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: - (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (b) a mixed supply comprising two or more s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure 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 Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and hence the services provided by the applicant is not exempted from GST. 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. The applicant is not covered under the definition of "educational institution" in Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maximum Rs. 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 of Section 8 (a) of the CGST Act, 2017. Therefore, the entire supply is to be treated as falling under SAC - 9992- 999293 - Commercial training and coaching services; being the principal supply and will be liable to GST at the rate applicable for the principal supply. 7) 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. 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 Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 in respect of the supply. 8) Whether there is any tax liability on the applicant for selling text books t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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