TaxTMI 
TaxTMI 
2021 (8) TMI 1018
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...., we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by the applicant are as under:- 2.1 Yashaswi Academy for Skills, the applicant/'YAS' is a not for Profit Company under sec. 25 of Companies Act 1956. Company activities are Charitable having registration under Sec 12AA of Income Tax Act 1961. 2.2 Applicant Company is registered as Agent under National Employability Enhancement Mission (herein after for the sake of brevity referred as 'NEEM '). NEEM agent is facilitator for extending support for mobilizing the trainees under NEEM Scheme of Government of India as per regulations under notification issued by All India Council for Technical Education (AICTE) for providing trainees on-the-job practical train....
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....ustry partner as far as providing stipend, insurance premium, uniform and safety shoes. 2.9 Rule 33 of CGST Act is as follows: Notwithstanding anything contained in the provisions of this Chapter, the expenditure or CGSTs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely, - (i) The supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorization by such recipient; (ii) The payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and (iii) The supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account. Explanation. - For the purposes of this rule, the expression "pure agent" means a person who- (a) Enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or CGSTs in the course of supply of goods or serv....
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....les by making laws to attain the objectives. Governments, established employment exchanges all over the country. The number of educated unemployed were exploding. Industries were coming up all over India. Technical education was all theory and without practical experience it was of no use. The Apprentice Act provided obligations on industries to impart practical training to qualified unemployed. The employment exchanges were not able to cope up with the work load and hence it became necessary to outsource the work However, there was apprehension of exploitation in the hands of private sector operators. Hence regulations were made to formulate the boundaries within in which such agents have to work Now let us consider the issue under consideration. Agreements under NEEM scheme 2.15 National employment enhancement mission (NEEM) is a Central Government initiative for enhancing the employability of the graduate/diploma holder in any technical/non-technical stream. To organize the activity methodically the Central Government has formulated regulation. Organization having expertise in this field is required to get itself registered as NEEM agent (facilitator) with All India Counci....
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.... is entitled for and also has charged professional service charges/administrative fees for services rendered as agent facilitator/Third Party aggregator on which applicant has charged GST. 2.23 Applicant therefore contends that it acts as pure agent for transfer of funds from industrial establishment to the trainees, by way of reimbursement. In these transactions the Applicant does not get any consideration from the trainees, and hence the amount received as reimbursement of stipend is not taxable under CGST/SGST Act. 2.24 The applicant does not wish to press other two points on which advance ruling is sought, namely: 1) amount received towards insurance premium. 2) Amount received for uniform and safety shoes. 03. CONTENTION - AS PER THE CONCERNED OFFICER: OFFICER's SUBMISSION DATED 28.01.2020:- The application has been examined and the clarification / comments on the queries raised by M/s Yashaswi Academy for Skills are as under: 3.1 As per the nature of work / activities described and submission made by M/s Yashaswi Academy for Skills, it appears that the assessee is acting as a pure agent on behalf of industry partner for the provision of....
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....s. As per the agreement with the industry partner, the uniform and safety shoes provided to the trainees are as per the requirement of the industry partner and are purchased in the name of the applicant. If any tax is liable on this transaction. It shall be collected by the actual supplier of the uniform and safety shoes and the applicant will be the recipient of supply of goods. Hence, the applicant is just a channel for the payment of the goods procured. Therefore, the reimbursement of actual amount incurred for procurement of uniform and safety shoes, by the industry partner to the applicant is not taxable in the hands of the applicant. 04. HEARING 4.1 Preliminary hearing in the matter was held on 28.01.2020. Shri G. Y. Patwardhan, Advocate and Authorized Representative, appeared, and requested for admission of the application. Jurisdictional Officer was absent. 4.2 The application was admitted. Final hearing in the matter was fixed on 27.07.2021. Shri G.Y. Patwardhan, Advocate, and Authorized Representative, appeared and made oral and written submissions. Jurisdictional Officer was absent. 4.3 Heard the matter. 05. DISCUSSIONS AND FINDINGS: 5.1 We have gone th....
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....rges fees per candidate, per month; reimbursement of Stipend paid to the trainees; reimbursement of actual CGST of uniform and safety shoes provided by the applicant to the trainees and reimbursement of the actual CGST of Insurance Premium towards Insurance policy received in the name of YAS specifying the names of students/apprentice trainee and industry partner. 5.7 Further, the applicant has also submitted that, Trainee students are paid remuneration in the form of stipend for their work and the industry is recipient of supply of services by trainees. Payment of stipend by the applicant is expenditure on behalf of industry Partner and hence the applicant qualifies as pure agent under the provisions of Rule 33 of CGST Act. 5.8 The jurisdictional officer with respect to Question No. 1 has submitted that, "the industry partner which is providing on the job training to the trainees is required to pay the stipend to the trainees and the applicant is only acting as an intermediary in collecting the same from the industry partners to the students. The service is provided by the trainers to the trainees as the trainer is liable to make payment of the consideration. This considerat....