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TMI Blog2021 (9) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 students under its supervision through Network partner. * The applicant will appoint Network Partner in different cities/towns for rendering and providing. on principal-to-principal basis, training /coaching and other related ancillary functions/services for the courses decided by applicant to its e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ail 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, schools etc through class room contact training /coaching, Live Learning Program and Distance Learning program. * The applicant has two directors, namely: A. Kamla Shanker B. Satish Kumar Sharma * The applicant for operational efficiency, effective coaching and other commercial reasons desirous to provide such core coaching /training act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 sought on the questions mentioned in Annexure-ii of the letter are as following: Comments on the Advance Ruling application filed by M/s. SYMMETRIC INFRASTRUCTURE PVT. LTD. (URD). Ans-1) As the applicant supplies services of coaching to the students which also includes along with coaching supply of goods/printed material/text papers/ uniform, bags and other goods to students. As such s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludes 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 under a business model through Network Partners as per sample agreement attached. containing obligations of Applicant and Network partners. Accordingly. the network partner provides the services to the students on behalf of Applicant. In such a case, who shall be considered as supplier of service and recipient of service under the agreement? (iv) Subject to Q. No. 3 above. what shall be the value of service provided by Applicant to students and by network partner to Applicant? (v) Whether both, Applicant and network partner can avail eligible ITC for their respective supplies? 2. We will take up all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 predominant element of the composite supply is to be determined on the basis of facts and circumstances of the present case. Now, classification of this composite supply. as goods or service would depend on which Supply is the principal supply which is also to be determined on the basis of facts and circumstances of the present case. Further, the tax liability on composite supply has been determined under Section 8 of the CGST/SGST Act, 2017, as under: 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 sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate 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 subsidies provided by the Central Government and State Governments. As discussed above, the applicant has been incurring the cost of goods supply to the students i.e. Begs, study material etc.). therefore, in light of the provisions of Sections 15(2) (b of the Act, the values of goods are part of the value of services provided by the applicant and charged a consolidate amount to the students. Therefore, the consolidated value for which tax invoice is issued shall be the taxable value. 6. Now, we discuss the forth question of the applicant seeking Advance Ruling which reads as under: Q. Whether both, Applicant and network partner can avail eligible ITC for their ..... X X X X Extracts X X X X X X X X Extracts X X X X
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