Institute's Education Services Not GST-Exempt, Exam Fees Excluded in Certain Cases

The ruling concluded that the institute's education program and training services are not exempt from GST as they do not qualify as an "educational institution." Their services are classified under SAC 9992-999293. Examination fees may be excluded from taxable value under certain conditions. Hostel facilities are treated as a composite supply and are taxable, while hostel fees for outside students are exempt if below a certain amount per day. The sale of textbooks to students is subject to GST as per the notified rates.

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Issues Involved:
1. GST exemption on education programme and training.
2. GST exemption on education programme and training based on syllabi of Government-recognized institutions.
3. GST exemption on education programme and training based on syllabi of international institutions recognized by the Government of India.
4. Service Accounting Code (SAC) under GST laws.
5. GST liability on collecting and transferring examination fees.
6. GST liability on hostel facilities provided to students.
7. GST liability on hostel fees for outside students.
8. GST liability on selling textbooks to students.

Issue-wise Detailed Analysis:

1. GST Exemption on Education Programme and Training:
The applicant, an institute providing education for professional qualifications such as Chartered Accountancy, Cost Accountancy, etc., sought a ruling on whether their education programme and training are exempted from GST. The ruling concluded that the applicant is not recognized by the relevant professional institutes or universities to conduct coaching/training as per their prescribed syllabus. Therefore, the applicant does not qualify as an "educational institution" under Para 2(y) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017, and hence, their services are not exempt from GST.

2. GST Exemption on Education Programme and Training Based on Syllabi of Government-recognized Institutions:
The applicant argued that they follow the syllabus published by various universities and government-recognized institutions. However, since the applicant is not recognized by these institutions to conduct training, they do not fall under the definition of "educational institution" as per the exemption notification. Consequently, their services are not exempt from GST.

3. GST Exemption on Education Programme and Training Based on Syllabi of International Institutions Recognized by the Government of India:
The applicant also provides training based on syllabi from international institutions like ACCA, IMA USA, etc., which are recognized by the Government of India. Despite this, the ruling stated that the applicant is not recognized by these institutions to conduct training. Thus, they do not qualify as an "educational institution" under the relevant notification, and their services are not exempt from GST.

4. Service Accounting Code (SAC) Under GST Laws:
The education services provided by the applicant fall under SAC 9992-999293, which pertains to "Commercial training and coaching services." This classification includes any training or coaching provided by an institute for imparting skill or knowledge, with or without issuance of a certificate, and includes coaching or tutorial classes.

5. GST Liability on Collecting and Transferring Examination Fees:
The ruling clarified that the entire consideration received by the applicant is subject to GST under Section 15 of the CGST Act, 2017. However, if the conditions prescribed in Rule 33 of the CGST Rules, 2017 are met, the amount collected as examination fees can be excluded from the taxable value as expenditure incurred by the applicant as a pure agent of the recipient of services.

6. GST Liability on Hostel Facilities Provided to Students:
The provision of coaching/training along with hostel facilities qualifies as a composite supply under Section 2(30) of the CGST Act, 2017. The tax liability on this composite supply is determined as per Section 8(a) of the CGST Act, 2017. Therefore, the entire supply is treated as falling under SAC 9992-999293 (Commercial training and coaching services) and is liable to GST at the rate applicable for the principal supply.

7. GST Liability on Hostel Fees for Outside Students:
The hostel facility provided to outside students falls under Service Classification Code 9963-996322 (Room or unit accommodation services provided by Hostels, Camps, Paying Guest, and the like). Since the value of supply per unit of accommodation is below Rs. 1000 per day, the applicant is eligible for exemption under Sl. No. 14 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.

8. GST Liability on Selling Textbooks to Students:
The sale of textbooks to students is subject to GST as per the schedule of rates notified under Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.

Conclusion:
The applicant's education and training services are not exempt from GST as they do not qualify as an "educational institution." The services are classified under SAC 9992-999293. The collection and transfer of examination fees may be excluded from taxable value if conditions for a pure agent are met. Hostel facilities provided to students are treated as composite supply and are taxable, while hostel fees for outside students are exempt if below Rs. 1000 per day. The sale of textbooks is subject to GST.

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