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TMI Blog2022 (2) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... icant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) & (e) given as under: (e) Determination of the liability to pay tax on any goods or services or both A. SUBMISSION AND INTERPRETATION OF THE APPLICANT; 1. The applicant is an individual having temporary user ID 082100000156AR4 under the Goods and Services Tax Act (hereinafter called as GST law) since 16.03.2021 and located at 26/B-5/H/803, Saryu Apartment, Jaipur, Rajasthan-302033. 2. The applicant was earlier registered under GST law vide GSTIN 08AGBPG9907F1ZG which was cancelled with effect from 30.09.2020. Prior to cancellation of registration, the applicant was providing Educational and Training Services to M/s Mentors Eduserv (GSTIN:1OADFPJ1214M1Z3) situated at 136/137 First, Parus Lok complex, Boring Road Crossing, Patna, Bihar - 800001. 3. The applicant used to classify such supplies under HSN 999294: Other Educational and Training Services n.e.c. under chapter 99 of the tariff code which are taxable @ 18% under GST law. 4. The applicant was exhibiting details of supplying educational related services etc. in his returns furnished in FORM GSTR-3B and FORM GSTR-1 for the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; [(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II] (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. As it can be seen from section 7(2)(a) produced above, activities or transactions which are specified in schedule III of the GST Act shall be treated neither as supply of goods nor supply of services i.e. such activities or transaction shall not be subject to tax under GST law. Moreover, Entry 1 of schedule III of GST law spells out that "services by employee to the employer in the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ihar (GSTIN:1OADFPJ1214M1Z3) and were paying tax under category of Other Educational and Training Services under HSN 999294 of chapter 99 of the tariff code which are taxable @ 18% under GST law. Further, they stated that they have been advised by the Income Tax authority that the service provided by them is in the nature of employer and employee. Therefore, it will be out of the purviews of GST Act as per entry 1 of schedule III read with section 7(2). 3. The applicant wants to know whether the services under consideration will be covered under entry 1 of schedule III of RGST/ CGST Act or not. 4. Before we delve deep to decide the case, it would be proper in the fitment of justice to discuss the relevant provisions of the statute which are as under- 4.1 Section 7 of the CGST Act, 2017:- 7. Scope of supply.- (1) For the purposes of this Act, the expression -supply includes- (a) all forms of supply of goods or services or both such as sale, transfer, baiter, 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; (b) import of services for a consideration whether or not in the course or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CGST Act, 2017 provides meaning of related persons :- Explanation.- For the purposes of this Act,- (a) persons shall be deemed to be -related persons if- (i) such persons are officers or directors of one another's businesses; (ii) such persons are legally recognised partners in business; (iii) such persons are employer and employee; (iv) any person directly or indirectly owns, controls or holds twenty-five per cent, or more of the outstanding voting stock or shares of both of them; (v) one of them directly or indirectly controls the other; (vi) both of them are directly or indirectly controlled by a third person; (vii) together they directly or indirectly control a third person; or (viii) they are members of the same family; (b) the term -person also includes legal persons; (c) persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related. 5. Apart from above, lets analysis the relevant clause of the agreement dated 10.02.2020, as per applicant's written submission, the new offer also contains similar terms and co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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