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TMI Blog2021 (12) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... brellas, study material etc. These goods and services can be supplied separately and are not dependent on any other. Thus, the Supply in question shall qualify as 'mixed supply'. Further, it is clear that there are supplies of goods as well as services of various classification (i.e. HSN/SAC) having various tax rates which constitutes the predominant element of a mixed supply. Thus, in the present case, the supply is a mixed supply of goods as well as services and highest rate of tax is 18%. Applicant provides coaching services under a new business model through Channel / Network Partners as per sample agreements attached, containing obligations of Applicant (REL) and such channel / Network partners. According to agreement, the channel / network partner provides the services to the students on behalf of Applicant. In such a situation, who shall be considered as supplier of coaching (REL) service and recipient of such service under the agreement? - HELD THAT:- Where coaching services are provided by the applicant to the students, students shall be regarded as 'recipient' as consideration is payable by the students to the applicant. Similarly, Network partner sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 08AADCR5581M1ZT) 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 OF THE APPLICANT:(in brief) The applicant is registered under Goods and Service Tax under the categories of Commercial Training or Coaching Centre Services and Advertising Agency's Services of the CGST Act, 2017. The applicant has been providing coaching services under the physical classroom mode but now due to Covid environment, it is shifting its business model through remote channel partner network. The applicant provides coaching services to its enrolled students under its supervision through Network partner. The applicant has appointed / is in the process of appointing Network Partner in different cities/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Selling registration/ admission forms, getting the admission forms filled, collecting the courses fees and maintaining records of enquiries, admission packets sale, students enrolled with applicant without any delay. Deposit of collection towards registration / admission and course fee from enrolled students in the designated bank account. (v) Providing facilities and infrastructure for smooth conduct of courses such as AC class rooms, black / white board, drinking water, furnished computer lab, staffroom, supporting staff etc. (vi) Offering fee discount as per resonance policy. (vii) Marketing of courses (viii) Providing premises / campus as per requirement (ix) Local advertisements B. Obligations of Applicant (REL): (i) Facilitate / assist in appointing the faculty academic man power in consultation and approval of the network / channel partner. (ii) Preparing and providing- (a) high quality printed study materials, (b) soft copy of examination papers, (c) soft copy of course planners, and (d) soft copy of annuals (e) schedule or any changes in any of the above papers. (iii) To provide Student Kit' and all other committe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while providing coaching services are as follows: i) T-shirt 5% ii) Bag 18% iii) Umbrella 12% iv) Hoodies sweat shirt 5% v) Publications (brochure, study material etc.) 12% The applicant is charging GST @ 18% on entire coaching services including goods. B. Question(s) on which advance ruling is sought 1. Applicant (REL) is supplying 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 lump sum amount is charged, the major component of which is imparting of coaching. In such situation, whether such supply of coaching services shall be considered, a supply of goods or a supply of services? 2. If the answer to the aforesaid first question is a supply of service, the applicant would like to know whether such supply of coaching services shall be considered as composite supply under section 2(30) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provider to the student and Network partner will be service provider to the applicant. Q. what shall be the value of service provided by Applicant (REL) to students and by channel / network partner to Applicant (REL)? Comments : - Total consolidated amount charged for which Tax invoice generated by the applicant would be the value of service supply by the applicant. Q. Whether the Applicant (REL) shall be eligible to avail Input Tax Credit (ITC) for the supplies? Comments : -Applicant can avail eligible ITC as per provisions of GST Act, 2017. D. PERSONAL HEARING In the matter personal hearing was granted-to the applicant on 20.12.2021. On behalf of the applicant CA, Sanjeev Agarwal and CA, Neha Somani appeared for PH. During the PH, they reiterated the submissions already made in the application. E. FINDINGS, ANALYSIS CONCLUSION: We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by the authorised representative of the applicant. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods or supply of service. As per clause (a) of sub-section (1) of Section 7 of the CGST Act, 2017, supply includes- all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. In the instant case, the applicant is providing coaching service along with sale of goods i.e. printed material/test papers, uniform, bags and other goods etc. to its enrolled students for as consideration which will be a lump sum amount for both goods and services. Therefore, there two components i.e. rendering of coaching service and sale of goods are exist. These component of supply are made or agreed to be made for a consideration. Further, as per sub-section (74) of section 2 of the CGST Act, 2017, 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. Apart from above, we are discussing the GST rates on goods/service comprised while providing coaching to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; mixed supply' which is as under: 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 a 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; Sub section (30) of section 2 of GST Act, 2017 defines 'composite supply' which is 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 mixed supply are as under- - two or more individual supplies of goods or services, or any combin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place of supply and CGST/ SGST/IGST, as the case would be levied in respect of intra-State transactions/ inter-State, as the case may be. Further, as far as supply of service is concerned, clause (b) of sub section (2) of Section 12 of the IGST Act, 2017 determines the place of supply of services, except the services specified in sub-sections (3) to (14): (a) made to a registered person shall be the location of such person; (b) made to any person other than a registered person shall be, - (i) the location of the recipient where the address on record exists; and (ii) the location of the supplier of services in other cases. In view of above legal provisions we are of the view that where coaching services are provided by the applicant to the students, students shall be regarded as 'recipient' as consideration is payable by the students to the applicant. Similarly, Network partner shall be regarded as provider of service to the applicant (recipient). The place of supply in both the cases (i.e. services provided to the students and service provided to the applicant by the network partner) would be determined in the manner as discussed above. 5. Now, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the students, therefore, in light of Sections 15 of the Act, the values of goods and value of service shall be the value of supply as charged in lump sum amount by the applicant from the students. 6. Now, we discuss the fifth question of the applicant seeking Advance Ruling which reads as under: Q. Whether the Applicant (REL) shall be eligible to avail Input Tax Credit (ITC) for the supplies? In this regard, as per Section 16 of the CGST Act, 2017, the applicant shall be eligible to take ITC of the GST paid on goods or services used or intended to be used in the course or furtherance of business subject to the conditions as prescribed and the provisions of the Section 17 of the CGST Act, 2017. 7. In view of the foregoing, we rule as follows: - RULING Q.1: Applicant (REL) is supplying 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 lump sum amount is charged, the major component of which is imparting of coaching. In such situation, whether such supply of coaching services shall be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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