GST on on - line training

[Kaustubh Karandikar]

XYZ(India) recovered amount from PQR, Singapore towards on – line training given to the customer of PQR, Singapore. The training was given from India by XYZ. Is XYZ required to pay GST on the amount recovered? In my view, it will fall under Section 13(12) of IGST Act, 2017 and as per this since the location of the recipient of services is outside India, XYZ not required to pay GST. Expert’s views please.

[Shilpi Jain]

These services are not OIDAR. This could fall under 13 3 b of the IGST act whereby place of supply could be the place of performance of the service due to which it may not be an export since place of performance is in India

[Ganeshan Kalyani]

It is an interesting question especially after covid when meetings are not in person but via internet. How we can say that participants/performance are outside India or in India when they (participants) join the training online?

[KASTURI SETHI]

Sh.Kaustubh Karandikar Ji,

Sir, This is OIDAR service as per para no.5 of Board's Flyer No. 43, dated 1-1-2018 which is extracted below:

Training and coaching are integrally related. In other words, both are same. Distant coaching or training is covered.

5. Supply of distance teaching

(a) Automated distance teaching dependent on the Internet or similar electronic network to function and the supply of which requires limited or no human intervention, including virtual classrooms, except where the Internet or similar electronic network is used as a tool simply for communication between the teacher and student;

(b) workbooks completed by pupils online and marked automatically, without human intervention,

The place of supply of online information and database access or retrieval services shall be the location of the recipient of services.

[Kaustubh Karandikar]

Shilpi ji, In my view, to get attracted provisions of 13(3)(b), physical presence is required and secondly it is to an individual. And going by the circular quoted by Kasturi ji, it will more appropriately fall under online information and database access or retrieval services. Your views please.

[Shilpi Jain]

I am sorry. I don't know how I put 13 3b, it would fall under 13 (2) whereby it would be location of recipient.

Also I think OIDAR will not be relevant in case it is a live online training which requires human intervention for sure. The service cannot happen without the human taking the classes. And thereby would not be oidar

However if it is recorded classes and the student is able to access those classes and stream it and watch it whenever required then it could be an OIDAR services as this would become an access of the online content available.

[Kaustubh Karandikar]

Thanks Shilpi ji for further clarification.

AI Summary

Place of supply for online training: OIDAR classification versus live service determines GST liability and export treatment.
GST treatment hinges on whether online training is OIDAR (automated/recorded, limited human intervention) in which case place of supply is the recipient's location and GST would not apply, or a live, instructor led service (requiring human intervention) which is not OIDAR and may be treated under place of performance rules placing supply in India.