DETERMINATION OF RECIPIENT OF SERVICE

[PARALIJAYAPALAN ANILKUMAR]

Sir,

XYZ is a Trust Formed by a Group of Educational Institutions For Controlling Their Admission And Related Works is Also Registered U/S. 12AA of The Income Tax Act. XYZ Is Issuing a Common Prospetus for Admission to These Colleges. All of The Member Colleges Will Also Come Under the Definition of Education Institution Under GST Act. XYZ Is Collecting a Nominal Charge on Behalf of The College from The Candidates Through Online Portal, Who Are Interested in Seeking Admissions on the Member Colleges. All The Admission Process of These Colleges is Routed Through the Website of The Trust Where the Trust is finally preparing a Rank List and on The Basis of the Same the Colleges is Completing the Admission Process. Trust Claimed The Service As 0% Relying on Entry Number 66-(B)(Iv)) Of Notification 12/2017- Central Tax(Rate)(28..06..2017) Where it is Stated That' Services Provided To An Educational Institution By Way of Services Related To Admission .......' . Department is of The View here the Service recipient Here is Students Hence the Rate of Tax is 18%. Please Help Me to Clarify issue by Expressing Your Expert Views....

AI Summary

Educational Trust's Fee for College Admissions Faces GST Dispute: Are Students or Colleges the Service Recipient? A trust formed by educational institutions, registered under Section 12AA of the Income Tax Act, issues a common prospectus and manages admissions for its member colleges, which qualify as educational institutions under the GST Act. The trust charges a nominal fee from candidates through an online portal, claiming a 0% GST rate based on specific notification provisions. However, the tax department argues that the service recipient is the student, thus attracting an 18% tax rate. An expert clarifies that the colleges are the actual service recipients, challenging the department's stance and suggesting that pre-GST case laws on similar issues could provide guidance.