9911796707
TMI Blog2021 (12) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... s Limited, A46 and 52, CG TOWER IPIA, Near City Mall, Jhalawar Road, Kota-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 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 channe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ects as per requirements of the courses. (iii) Conducting periodical tests in respect of the courses and check answer books for performance evaluation of the students. (iv) 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h types of transactions. 3. Additional information submitted by the applicant is as under: The GST rates on goods comprised 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) of CGST Act, 2017? If yes what shall be the principal supply as per section 2(90) of CGST Act, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Based on the submission of the applicant as well as the arguments/discussions/submission made by the representative of the applicant, we find that there are different issues to be discussed in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, 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 students, are as follows: Item HSN/SAC GST rate i) T-shirt (upto Rs. 1000/exceeding Rs. 1000)- 6109 5%/12% ii) Bag - 4202 18% iii) Umbrella - 6601 12% iv) Hoodies sweat shirt (upto Rs. 1000/exceeding Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 combination thereof. - made in conjunction with each other; - Each of these items can be supplied separately and is not dependent on any other. - supplied for a single price where such supply does not constitute a composite supply. In the instant case, the applicant along with coaching services provides goods in the form of uniforms, bags, umbrellas, 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 constitute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oaching 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 required to discuss the forth question of the applicant seeking Advance Ruling which reads as under: - Q. Based upon above questions, what shall be the value of service provided by Applicant (REL) to students and by channel / network partner to Applicant (REL)? In this regard we may visit Section 15 of the CGST Act which defines value of taxable supply. It read as under:- (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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, a supply of goods or a supply of services? Ans.1: In the present case, the supply is a mixed supply of goods as well as services and attracts highest rate of tax @ 18% (i.e. 9% CGST+ 9% SGST or 18% in case of IGST). Q.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) of CGST Act, 2017? If yes what shall be the principal supply as per section 2(90) of CGST Act, 2017? Ans.2: In the present case, the supply is a mixed supply of goods as well as services under Section 2(74) of GST Act, 2017 and attracts highest rate of tax @ 18% (i.e. 9% CGST+ 9% SGST or 18% in case of IGST). Q.3: Applicant provides coachi ..... 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