GST on supply of Printed Textbooks by Coaching Institute

[Mith Moh]

ABC offers professional coaching for courses like ACCA and CMA USA, which involve internationally recognized certifications in the field of finance and accounting. ABC conducts educational programmes through structured classroom lectures, wherein qualified instructors impart training in accordance with the curriculum prescribed by the respective professional bodies. Additionally, students receive study materials, such as printed books, notes, and other reference materials, which are sourced from government-recognized institutions and publishers affiliated with ACCA, IMA USA, and similar organizations. These materials are aligned with the official syllabi of the professional courses, ensuring students have access to the highest quality content necessary for their exam preparation.

Whether the Printed Textbooks supplied to students are exempt from GST?

a)When the textbooks are supplied as part of the Coaching to all enrolled students?

b) When the textbooks are supplied independent of the Coaching as optional item for enrolled students?

c) When the textbooks are supplied independent but at a concessional rate than market value?

What is the classification and GST Rate for e-materials or online materials provided to students?

[Shilpi Jain]

It is required to analyse whether the books that are sold are a composite supply with the coaching services or can be regarded as a spearate supply. In the case of latter there can be an exemption.

[Sadanand Bulbule]

Printed textbooks supplied as an integral part of coaching may qualify as a naturally bundled composite supply taxable at the rate applicable to coaching services, whereas books supplied independently - whether optional or at a concessional price - are generally classifiable as "printed books" exempt from GST if they satisfy the conditions of Heading 4901, while e-materials or online study materials are treated as taxable digital/online educational content or OIDAR/services, generally attracting 18% GST.

[Mith Moh]

In connection with textbooks being supplied at concessional rate, wouldn't it be considered as a composite supply as part of Coaching Service? because, the student cannot buy the textbooks at that concessional price without enrolling in the coaching. Isn't the separate itemization a mere valuation split of a single composite transaction?

[KASTURI SETHI]

Whether the Printed Textbooks supplied to students are exempt from GST ?

a) When the textbooks are supplied as part of the Coaching to all enrolled students ?

It is a composite supply. No exemption available for textbooks. See Advance Ruling in Ref. 2023 (13) Centax 139 (AAAR-Rajasthan}

b) When the textbooks are supplied independent of the Coaching as optional item for enrolled students ?

Exemption available. NIL rate under HSN : 4901 10 10

c) When the textbooks are supplied independent but at a concessional rate than market value ?

Exemption available NIL rate 4901 10 10

What is the classification and GST Rate for e-materials or online materials provided to students?

9984 (@ 18 %, if provided separately OIDAR Services. As a composite supply 9992 Rate 18 %

[Mith Moh]

In connection with textbooks being supplied at concessional rate, wouldn't it be considered as a composite supply as part of Coaching Service? because, the student cannot buy the textbooks at that concessional price without enrolling in the coaching. Isn't the separate itemization a mere valuation split of a single composite transaction?

[KASTURI SETHI]

This is with reference to serial no. 3.1.

Q, When the textbooks are supplied independent of the Coaching as optional item for enrolled students ?

Ans. In the backdrop of serial no.3.1, if it is so, you should not talk of independent supply of textbooks. Your question and cross -question are contradictory.

[Mith Moh]

Sir,

The scenario in 3.1 is that, ABC is providing coaching services to students and textbooks are supplied independant of coaching to "enrolled students". The supply is purely optional. There is no mandate that an enrolled student has to buy a textbook and it is invoiced separately. Both b) and c) cover the same scenario except for that in c) the textbooks are sold at a concessional rate. In either case, no student who has not enrolled can purchase textbooks. However, purchase of textbook is not mandatory and a student can opt for the course alone without purchase of textbook. When this optional supply is provided at concessional rate, isn't the separate itemization a mere valuation split of a single composite transaction?

[Sadanand Bulbule]

In the last situation explained, the factor of determination of "consideration" matters crucial and it has to be reckoned in terms of Section 15 of the CGST Act.

[KASTURI SETHI]

W.r.t. serial no.4.1

Q. When this optional supply is provided at concessional rate, isn't the separate itemization a mere valuation split of a single composite transaction ?

A. NO.

AI Summary

Composite supply and printed books exemption shape GST treatment of coaching materials, while e-materials remain taxable.
Printed textbooks supplied by a coaching institute must be tested to see whether they form part of a composite supply with coaching services or constitute a separate supply. If the books are integral to the coaching package, they are taxed with the principal service. If supplied independently, including as an optional item or at a concessional price, they may be treated as exempt printed books under Heading 4901, subject to classification conditions. E-materials and online study materials are generally taxable as digital or online services.