9911796707
TMI Blog2021 (9) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... consolidated amount is charged by the applicant - In the instant case, the applicant is providing coaching service to its enrolled students for as consideration which will be a lump sum amount for both goods and services. Therefore, transaction of supply of coaching service for a consideration falls under the ambit of Supply of service . Whether such supply shall be considered as composite supply? - If yes, what shall be the principal supply? - HELD THAT:- From the definition of principal supply it is clear that in the present case there is a principal supply of goods or services which constitutes the predominant element of a composite supply. The predominant element of the composite supply is to be determined on the basis of facts and circumstances of the present case - In the instant case, the applicant along with coaching services provides goods in the form of uniforms, bags, study material etc. Supply of goods is a part of supply of service shall qualify as composite supply'. The principal supply being the supply of coaching service to the students, tax on such supply shall be levied accordingly. Coaching service under a business model through Network Partners as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the GST Act . The issue raised by M/s Symmetric Infrastructure Private Limited, 33A, Talwandi, Kota. Rajasthan, 324005 Rajasthan (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a), (c) (d) given as under: (a) Classification of any goods or services or both; (c) determination of time and value of supply of goods or services or both, and (d) admissibility of input tax credit of tax paid or deemed to have been paid Further, the applicant being a registered person (GSTIN is 082100000112ARG) as per the declaration given by him in Form (ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. A. SUBMISSION AND INTERPRETATION OF THE APPLICANT: Description (in brief) The applicant intends to provide coaching services to its enrolled st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... students on behalf of Applicant. In such a case, who shall be considered as supplier of service and recipient of service under the agreement? 4. Subject to Q. No. 3 above, what shall be the value of service provided by Applicant to students and by network partner to Applicant? 5. Whether both, Applicant and network partner can avail eligible ITC for their respective supplies? Statement of relevant facts having a bearing on the questions raised: Symmetric Infrastructure Private Limited (hereinafter referred as applicant ) (CIN: U45201RJ2007PTC025506), a private limited company. duly registered under the companies act, 2016 and having its registered office at Office No. 106, Ground Floor, Plot No. C, C-150(A) Road No. 5, IPIA Kota, Rajasthan-324005. The applicant was incorporated on 14/12/2007 to carry out the objective of business to provide coaching/ training Courses and programs for competitive exams including but not limited to entrance examinations for engineering, medical, Law and commerce colleges, as also various qualifying examinations and which may also include products (goods) and services at its various places of operation to the general public, sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to the students undergoing training/ coaching with the object of not only facilitating success in targeted competitive examination but also build self-confidence to face stiff standards set for competitive examinations; (vi) Conducting motivational, counselling and conducting an Inhouse Career Orientation Session(s) or Seminar(s) at the said Premises during the course. C. The Network Partner will collect all fees from the registered students in timely manner and shall deposit in designated Escrow bank account. D. Applicant shall issue tax invoice to the students who wishes to enrol with it, of a consolidate amount (which includes coaching service and other related goods) which may be collected by the network partner and deposit the same in the said escrow account. E. Network Partner shall issue tax invoice for Service charge to the applicant for its coaching services (and other related managerial/ancillary services) in respect of various offline/Online Courses of the applicant. B. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdictional officer has submitted his comments vide their letter which can be summarized as under: The detailed comments sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 RGST Act. 2. Based on the submission of the applicant as well as the arguments/discussions made by the representative of the applicant during the course of personal hearing. we find that there are different issues to be discussed in respect of which the applicant has asked five questions seeking Advance Ruling on the same. They are as under: (i) Applicant supplies services of coaching to students which also includes along with coaching, supply of goods/printed material/test papers, uniform, bags and other goods to students. Such supplies are not charged separately but a consolidated amount is charged, the major component of which is imparting of coaching. In such circumstances, whether such supply shall be considered, a Supply goods or a supply of services? (ii) If the answer to the aforementioned first question is supply of service, whether such supply shall be considered as composite supply? If yes, what shall be the principal supply? (iii) Applicant provides coaching service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mixed Supply. Section 2(30) of GST Act, 2017 defines 'composite supply' as under: 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; We find that essential components of a composite supply are as under- -two or more taxable supplies: -services should be naturally bundled: -supplied in ordinary course of business; - one of the supply out of whole should be a principal supply. Further, Principal supply has been defined under Section 2(90) of the CGST/SGST Act, 2017, as under: principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary: From the above definition of principal supply it is clear that in the present case there is a principal supply of goods or services which constitutes the predominant element of a composite supply. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Q. No. 3 above, what shall be the value of service provided by Applicant to students and by network partner to Applicant? Section 15 of the CGST Act defines value of taxable supply. It reads as under:- 15. (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (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) .. (d) .. (e) Subsidies directly linked to the price excluding s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
