TaxTMI 
TaxTMI 
2026 (4) TMI 1565
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....GST Act would be mentioned as being under the "GST Act". The issue raised by M/s ALLEN CAREER INSTITUTE PRIVATE LIMITED, CP-06, SANKALP, INDRA VIHAR, KOTA, RAJASTHAN-324005 (hereinafter "the applicant") is fit to pronounce advance ruling as they have deposited prescribed Fee under CGST Act and it falls under the ambit of the Section 97(2) given as under: (a) classification of goods and/or services or both (e) Determination of the liability to pay tax on any goods or services or both A. SUBMISSION OF THE APPLICANT (in brief) :- Brief facts of the case: • Allen Career Institute Private Limited (hereinafter referred to as "the Applicant") is a private limited company incorporated in India under the Companies Act, 2013, and is registered under the GST Act with GSTIN 08AAVCA8216C1ZJ. • The Applicant is a privately held education institution providing education to students for competitive exams in streams such as IIT-JEE, NEET, and other competitive examinations. The institute is headquartered in Kota, Rajasthan, and operates multiple centres in Rajasthan and other States across India. • Apart from offline coaching the App....
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.... internet; (ii) providing cloud services; (iii) provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet; (iv) providing data or information, retrievable or otherwise, to any person in electronic form through a computer network; (v) online supplies of digital content (movies, television shows, music and the like); (vi) digital data storage; and (vii) online gaming, excluding the online money gaming as defined in clause (80B) of section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017.) ;...' 2.2 Given this, OIDAR services means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply impossible to ensure in the absence of information technology. 2.3 The Applicant provides digital coaching programs through its e-learning platform, which consist of live online classes, pre-recorded courses, or a combination of both. Students pay a subscription fee to access these courses and are not required to be physically present in any classroom. The essential feature of the Ap....
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....omated, and the role of the Applicant is limited to hosting, maintaining, and enabling electronic access to the digital content. Any human involvement is limited to content creation at an earlier stage and does not constitute the dominant or essential feature of the supply at the time of delivery to the students. Accordingly, the Applicant's services lack the essential attributes of commercial training and coaching services classifiable under HSN Code 999293. 2.11 Further, the determination of whether a service qualifies as an OIDAR service is governed exclusively by the statutory definition under Section 2(17) of the IGST Act, 2017, which emphasises the automated, internet-based delivery of services with minimal human intervention, and the impossibility of such supply in the absence of information technology. 2.12 The Applicant's services satisfy all the elements of the OIDAR definition, inasmuch as they are delivered electronically over the internet, are accessible only through digital platforms, and essentially involve the online supply of video-based educational content. Merely because the subject matter of the content relates to education or skill development, the same c....
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.... supply of services in the course of inter-State trade or commerce." 2.19 Section 8(2) of IGST Act states that the supply of services shall be treated as intra-state supply, where location of the supplier and the place of supply are in same state, subject to provision of Section 12 of IGST Act. 2.20 Based on the above, the Applicant submits that it is imperative to analyze the place of supply provisions for online training services as per Section 12 of IGST Act. Section 12 of IGST Act deals with the place of supply of services where location of supplier and recipient is in India. 2.21 Section 12(3) to 12(14) determines the place of supply under specific circumstances. If a service does not fall within these provisions, then the place of supply would be determined as the residual provision under Section 12(2) of IGST Act. 2.22 As mentioned above, the Applicant is engaged in supply of OIDAR services to students who are residing across the country (i.e. within the state of Rajasthan and outside the state of Rajasthan). In this connection, the Applicant would refer to and analyze the provision of Section 12(5) of IGST Act which is related to training and performance apprais....
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....or and the students may be situated in different locations, often in different cities or states, making it impossible to determine a single place where services are performed. 2.30 In an online setting, the coaching institute may be located in one city, the trainer in another, and the students dispersed across different locations. The use of the word "actually" in Section 12(5)(b) of IGST Act implies that the service must be performed at a real-world location, which is clear for in-person training but unclear for online training. 2.31 In such circumstances, it cannot be said that the online training services are actually performed at a particular place. Thus, it is not possible to determine the place of supply of service under Section 12(5)(b) for online training services. 2.32 In the instant case, the application is located in the state of Rajasthan, the students are located across India, the server on which the courses are located in Karnataka, in case of live-courses the lecturer may be located in any state. Given this, there is no single place where services are actually performed. 2.33 The Applicant would like to draw reference to Taxation of Services - An Educatio....
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....ng services and hence, the place of supply in respect of the online coaching / training services would have to be determined in accordance with Section 12(2) of the IGST Act. 2.37 In view of the above, the Applicant submits that any of the provisions mentioned in Section 12(3) to Section 12(14) of IGST Act are not applicable. Therefore, the place of supply in respect of the online coaching/ training services needs to be determined in accordance with Section 12(2) of IGST Act. 2.38 We have reproduced the relevant extract of the provision below: "Section 12(2) The place of supply of services, except the services specified in sub-sections (3) to (14) - a) made to a registered person shall be the location of such person; b) made to any person other than a registered person shall be: 1. the location of the recipient where the address on record exists; and 2. the location of the supplier of services in other cases." 2.39 Additionally, it is respectfully submitted that the issue relating to the determination of place of supply in respect of online services, including OIDAR services supplied to unregistered recipients, now stands conclu....
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....tion 12(5) of the IGST Act. 2.44 A construction that seeks to identify a fictional "place of actual performance" for online services would be administratively impractical and contrary to the CBIC's own clarification mechanism as provided under Circular No. 242/16/2017-GST. Such an approach would undermine the clarity and predictability intended by the Circular, which specifically addresses the treatment of online or OIDAR services without reference to a notional physical location. 2.45 It is respectfully submitted that Section 12 of the IGST Act is a self-contained and structurally coherent code for determination of place of supply of services, wherein sub-section (2) lays down the general rule, and sub-sections (3) to (14) carve out specific exceptions based on the nature of services and their physical nexus. A conjoint reading of sub-sections (3), (4),(6) and (7) demonstrates a clear and consistent legislative pattern whereby the place of supply is determinable with reference to a tangible, physical location, such as the location of immovable property, the place where services are actually performed, or the venue where an event is held. These provisions are designed to addr....
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.... Act, 2017 specifically governs training services that are physically conducted in person. (ii) Section 12(2) of the Central Goods and Services Tax Act, 2017 read with Circular No. 242/16/2017-GST specifically governs online training services and services provided through the OIDAR (Online Information and Database Access or Retrieval) mechanism. Accordingly, even if both provisions are specific, the provision aligned with the actual mode of delivery applies. Therefore, Section 12(2) read with Circular No. 242 shall apply to online or OIDAR training services, while Section 12(5) shall apply only to physically conducted training services. 2.49 In this regard, the Applicant places reliance on Bangalore CESTAT decision in the case of Focus Edu Care [2024-VIL-1234-CESTAT-BLR-ST dated 26 September 2024] wherein the CESTAT addresses that the place of provision of services in case of supply of e-learning course as well as supply of providing tutors for online trainings shall be determined according to Rule 3 outlined in the Place of Provision of Services (POPS) Rules, 2012. Rule 3 serves as the general rule, which coincides with Section 12(2) of the IGST Act, establishing a ....
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....y revenue leakage or tax avoidance. On the contrary, as clarified by CBIC Circular No. 242/36/2024-GST, suppliers of OIDAR services are mandatorily required to record the State of the unregistered recipient on the tax invoice, which is deemed to be the address on record, thereby ensuring accurate determination of place of supply and correct apportionment of tax to the destination State. Conversely, forcing such services into Section 12(5), which is designed for physically performed training services, would create ambiguity, practical impossibility of identifying the place of "actual performance", and inconsistent tax treatment for identical online supplies. Therefore, classification of online training services as OIDAR services governed by Section 12(2) of IGST Act not only accords with statutory intent and administrative clarification but also advances certainty, uniformity, and the core destination-based philosophy of GST, rather than undermining it. 2.54 in view of the above arguments, the Applicant submits that the online training services provided to students across India would be classified as OIDAR services and fall within Section 12(2) of IGST Act. Accordingly, IGST woul....
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....to adjust the volume, adjust the playback speed, adjust the resolution and save the view frame being played. We have attached the snapshot of these features in the 'Document 1' attached herewith. However, the student can use the Al enabled problem 'Doubts' tab to clarify its doubts whereby the student can ask the question and the Al shall respond to the question automatically. We have attached a snapshot of the doubts page also as Document 2. As regard live videos, the sessions include real-time doubt-solving, where students interact directly with the tutor online, raise their queries on the website / app, and receive immediate clarification on the website / app. We have attached a snapshot of the session as Document 3. Q No 2-Whether facility to reply is there on comment made by the students? Allen's Answer - No, the student cannot comment on any pre recorded videos. The only option available to the student is to adjust the volume, adjust the playback speed, adjust the resolution and save the view frame being played. We have attached the snapshot of these features in the 'Document 1' attached herewith. However, the student can use the Al enabled problem 'Doubts' tab....
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....o provides digital coaching programs through its e-learning platform. The Applicant has filed an application U/S of 97(1) of CGST Act 2017 seeking on advance ruling on the following questions: (i) Whether supply of online training services (delivered through live/recorded digital platforms) shall qualify as "online information or database access retrieval service" under HISN 998433 (i.e. on-line video content) or should be covered under HSN code 999293 (i.e. commercial training and coaching Services)? (ii) Determination of the tax liability under the CGST and SGST Acts especially when the student is based in a state outside Rajasthan? 2. Comments on Merits of the case: On examination of the submissions made by the applicant and record available, as per the provisions of CGST Act 2017 and relevant rules/notifications the following is the legal positions regarding questions raised by applicant: HSN Classification: OIDAR (HSN 998433) or Commercial Training & Coaching (HSN 999293)? (i) Section 2(17) of the IGST Act requires two conjunctive conditions for OIDAR - internet-mediated delivery, and that the nature of the service renders ....
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.... services not covered by sub-sections (3) to (14); Section 12(5) is a specific provision within that range. (iii) Under Section 12(5)(b), for training services to unregistered persons, the place of supply is where the services are actually performed. On the Applicant's own admitted facts - headquarters, faculty, course development, platform management and billing are all at Kota, Rajasthan; syllabi are designed, lectures recorded, live classes conducted, study materials dispatched and invoices raised all from Rajasthan. The service is performed in Rajasthan. A student in another State receives the benefit there - but Section 12(5)(b) speaks of the place of performance, not receipt. Since both the supplier's location and place of supply are in Rajasthan, the supply is intra-state under Section 8(2) of the IGST Act. (iv) CBIC Circular No. 242/36/2024-GST was issued specifically for OIDAR services and cannot govern a categorically different class of services. The Applicant's reliance on Focus Edu Care [2024-VIL-1234-CESTAT-BLR-ST/ is equally misplaced - that ruling was under the service tax regime and POPS Rules, 2012, a legally distinct framework inapplicable under ....
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....ulatively satisfied: • The service is delivered over the internet or an electronic network; and • The nature of the service is such that its supply is essentially dependent on information technology and impossible to render without such technology. (ii) While the applicant satisfies the first condition, it fails to meet the second condition. Coaching for competitive examinations such as NEET and IIT-JEE has traditionally been imparted through physical classroom teaching - it is not technology-born. The adoption of an online platform merely alters the mode of delivery and does not change the essential nature of the service. The "impossibility test" must be applied to the intrinsic character of the service and not to the medium through which it is delivered. The service being delivered is interactive and outcome-based structured teaching, not mere access. (iii) Classification under GST must be determined based on the dominant nature and substance of the service, and not merely on the mode of delivery. The applicant provides structured, teacher-led examination preparation involving: I. Live interactive classes II. Curated a....
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.... as OIDAR. (vi) The applicant has declared following details of Services offered by the Business in his registration S. No. Service Accounting Code Description of Services 1. 999293 Commercial training and coaching services (vii) Applicant has issued Tax invoices mentioning following details: Description of services: Commercial training and coaching services # (# Including Composite supply of Study Material, Uniform and Kit). Applicant has himself declared his service to be Commercial training and coaching services and charged and collected tax accordingly. Finding on Classification In view of the above, the services provided by the applicant do not qualify as OIDAR services and are correctly classifiable under HSN 999293 - Commercial Training and Coaching Services. B. Place of Supply Issue: Whether the supply is intra-State (CGST + SGST) or inter-State (IGST) (i) The applicant's contention regarding applicability of IGST is premised on classification of the service as OIDAR. If it were OIDAR, then Section 12(2) of IGST Act 2017 would apply, which states that recipient's location is t....
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.... 8(2) of the IGST Act, attracting CGST @ 9% and SGST @ 9% under HSN 999293, and not IGST @ 18%. Conclusion In light of the foregoing facts and legal analysis, it is concluded that: (i) The supply of online coaching services delivered through live and/or recorded digital platforms is appropriately classifiable under HSN 999293 - Commercial Training and Coaching Services, and does not qualify as OIDAR. (ii) The place of supply is within the State of Rajasthan, and accordingly, the supply is an intra-State supply, liable to CGST @ 9% and SGST @ 9%, irrespective of the location of the students. The jurisdictional officer also submitted some document through special messenger i.e. 1. invoice number 5731 receipt no. 24059936 of motion education Pvt. Ltd. 394, Rajeev Gandhi Nagar, KOTA, GSTN/UIN-08AAICM4637L2ZZ, student lead opened through I.D. of Mr. Pawan Vijay ([email protected]) and a copy of Aadhar of Ayansh Gupta. 2. Invoice no. 4582 of the same taxpayer as mentioned in point no.1 with all enclosure as mentioned in point no. 1. 3. Invoice no. 44431 of the same taxpayer as mentioned in point no.1 with all enclosure as menti....
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.... file. F. DISCUSSIONS AND FINDINGS 1. We have carefully examined the statement of facts, the application filed by the applicant, the submissions made during the hearing, and the comments from the jurisdictional Tax Authority. We also considered the issues involved for which the advance ruling is sought, along with other relevant facts including comments made by jurisdictional officer and documents submitted by him. 2. M/s. Allen Career Institute Private Limited, CP-06, SANKALP, INDRA VIHAR,KOTA, RAJASTHAN-324005 (hereinafter referred to as "the /Applicant") is a privately held education institution providing education to students for competitive exams in streams such as IIT-JEE, NEET, and other competitive examinations and registered under the GST Act with GSTIN 08AAVCA8216C1ZJ. 3. The issue raised by the applicant is fit to pronounce advance ruling as they have deposited prescribed Fee under CGST Act and it falls under the ambit of the Section 97(2) given as under: (a) classification of goods and/or services or both, and (e) Determination of the liability to pay tax on any goods or services or both 4. After consideration we observe that- a) The applicant ha....
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.... 8. The sample video available on internet shows that it gives option to the students to react on the content and also give facility to reply the comment. This shows that the activity carried out by the taxpayer of providing commercial training and coaching is an interactive activity and not merely to access and retrieve online information and database. Two Screenshot of the video is captured and print out kept on the record. 9. Every online services not considered as OIDAR under the GST Law. Under GST OIDAR is a specific subset of online services where the services are dependent on Information Technology for example Human dependent services where a human provides, advice or service via the internet e.g. a doctor conducting a live consultation are generally not OIDAR as the human, not the internet, provide the core service likewise professional services of an accountant and a lawyer delivering advice through e-mail is generally not considered OIDAR. It is obvious that core business of the taxpayer is to train and coach particular participant to crack a particular examination. This way this squarely cover under example given above. 10. In continuance of P.H. query the applica....
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....ing services. The Applicant's reliance on the general rule under Section 12(2) of the IGST Act is legally misplaced, as that sub-section strictly applies only when services are not covered by the specific provisions of sub-sections (3) to (14). Because the supply inherently involves training and coaching, it is mandatorily governed by the specific Section 12(5) of the IGST Act. 15. As per Section 12(5)(b) of the IGST Act, the place of supply of services in relation to training and performance appraisal provided to an unregistered person shall be the "location where the services are actually performed." Based on the facts placed on record, the Applicant's headquarters, technical infrastructure, faculty conducting the live and recorded classes, content development, and administrative operations are all centralized and executed from Kota, Rajasthan. Furthermore, the physical dispatch of study materials originates from Rajasthan. Therefore, the actual "performance" and provision of the coaching service occur strictly within the State of Rajasthan, which legally separates the statutory place of performance from the geographical location where the unregistered student merely consumes ....