TaxTMI 
TaxTMI 
2026 (5) TMI 699
X X X X Extracts X X X X
X X X X Extracts X X X X
.... under Heading 9992 (Education Service) ? Q.2 Whether or not, on the facts and in the circumstances of the case, the Exemption under SLNo.72 of Notification No. 12/2017-Central Tax (Rate) Dated 28-06-2017, as amended, is available to the Petitioner for supplies made by the Petitioner to OSDA? Q.3 Whether, on the facts and in the circumstances of the case, the supplies made by the Petitioner is more appropriately classifiable under Heading 9973 (Leasing or Rental Services)? Q.4 Alternatively, whether, on the facts and in the circumstances of the case, the supplies of User License to access online content of Coursera, proprietary digital platform made by the Petitioner is classifiable under Heading 9984 (Online Content Services)? 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the OGST Act. The present application has been filed under Section 97(1) of the CGST Act, 2017 and OGST Act, 2017 se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4-12-2023, entered into between OSDA and M/s Coursera Inc., USA, the Petitioner, as a Sub-Contractor of M/s Coursera Inc., shall distribute/supply Coursera User Licenses to OSDA and undertake implementation of User License. The User License will enable technical students to access digital skills courses as well as other skill-based programs under the Nutana Unnata Abhilasha ("NUA") Odisha Scheme of the Government of Odisha. 2.7 The salient features of the MOU dated 24-12-2023 entered into between OSDA and Coursera Inc., are as under:- (i) The MOU is entered into for supply of Coursera User Licenses (minimum 5000 user licenses) for a period of one year. The Coursera will provide super Admin rights to OSDA to access educational content in Coursera proprietary digital platform; (ii) The said User Licenses supplied to OSDA by Coursera shall enable technical students across colleges and universities to access courses on digital and other skill-based programmes, thereby providing them an opportunity to learn from the world's best courses in emerging technologies such as Artificial Intelligence, Machine Learning, Industrial [OT, Data Analytics, Engineering, Digital Ma....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... open content offerings to be mutually agreed upon in writing by Coursera and OSDA "Courses" or "specialization" means courses and specialization from the world's top universities and instructors, for consumption via the proprietary platform developed by Coursera ("Platform") "User License" means the right for a single use to access the content services for unlimited number of Enrollments "Enrollment" means registration to participate in a single course and such Enrollment shall be deemed used once a User registers for a course. If a course or specialization becomes unavailable prior to the end of the Terms due to Coursera and its agreement with its content partner, Coursera may replace such course or specialization. The courses and specialization offered in the Coursera for campus catalog are determined by such factors as availability, pricing, and/or other restriction. As of the date hereof, Stanford and University of Pennsylvania are not available to OSDA through Coursera for campus. That, Coursera Inc., USA and the Petitioner (Unitech Engineers) entered into an Agreement dated 26-12-2023 (with Managed Service Provider (MSP) Addendum thereto) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pplies the User License to the Petitioner, Coursera raises its invoice/bill on the Petitioner and the Petitioner pays the Coursera's Bill irrespective of whether it is realized from OSDA or not. The Petitioner upon supply of Coursera products to OSDA issues its own tax invoice on OSDA and the Petitioner receives payment from OSDA directly. The Petitioner acts as a principal of its own right, and the relationship between the parties and the transactions in the instant case in substance are on principal to principal basis and the Petitioner is not an "intermediary" of Coursera. 2.10 That, in accordance with the said MOU dated 24-12-2023, the OSDA issued Work Orders vide 4765 dated 29.12.2023 & 4233 dated 13.08.2024 for supply of Coursera User License with 18% GST. Further, the Petitioner raised Tax Invoice No. UE/RK/25-26/093 Dated 14-04-2025 on OSDA as agreed upon classifying the said supply under description of service "Other Education and Training Services, nowhere else -classified" (SAC 999294, charging GST@18% (CGST 9% + SGST 9%). Thereafter, the Petitioner issued another Tax Invoice No. UE/RK/25-26/559 dated 21-07-2025 for supply of 10,000 Coursera User License to OSDA, clas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ucation Services). The Jurisdictional Authority concurs with the Applicant's own submission that the supply of Coursera User License is not classifiable under Heading 9992 (Education Services). This conclusion is supported by the following factual and legal considerations: 1.2 The core obligation of the Applicant is limited to the supply of a 'User License' that grants OSDA access to the digital content hosted on Coursera's proprietary platform. The Applicant does not impart, provide, or deliver any education, training, coaching, or instruction to the students or to OSDA. The supply is of a right of access - not of a teaching or training service. 1.3 Under the MOU dated 24.12.2023, Coursera provides rights to OSDA to access its platform. The platform hosts courses and specializations from worldclass universities and instructors. However, neither the Applicant nor Coursera is obligated under the MOU to deliver any Education and Training to the technical students. The courses are made available; the act of teaching is performed by third-party universities and instructors on Coursera's platform, not by the Applicant. 1.4 The CBIC Explanatory Notes t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that training programme must be borne by Administration. 2.3 Ground 1 - Classification under Heading 9992 is absent: As submitted in Reply to Question No. I above, the supply of User License is not classifiable under Heading 9992. Since classification under Heading 9992 is itself the pre-condition for this exemption, the exemption is not available on this ground alone. 2.4 Ground 2 - OSDA is not the 'State Government: The exemption under S1. No. 72 applies to services provided directly to the Central Government, State Government, or Union Territory Administration. OSDA is an autonomous body registered under the Societies Registration Act, 1860. It is not the State Government of Odisha. It cannot be equated with the State Government for the purpose of an exemption notification, which must be construed strictly. 2.5 Ground 3 - OSDA does not qualify as 'Government for this exemption: Explanations 4(ix) and 4(x) of Notification No. 11/2017-CT (Rate) define 'Governmental Authority' and 'Government Entity' respectively. Critically, the exemption under SI. No. 72 of Notification No. 12/2017-CT (Rate) does not extend its benefit to supplies made to 'Government E....
X X X X Extracts X X X X
X X X X Extracts X X X X
....License' defined in the MOU as 'the right for a single use to access the content services for unlimited number of enrollments'. This is a grant of a non-exclusive, non-transferable, revocable right to access the digital content of Coursera's proprietary platform. The essential character of the transaction is the licensing of a right of access - which falls squarely within Heading 9973 (Leasing or rental services with or without operator, including licensing services for intellectual property and similar products). 3.3 The Scheme of Classification under Notification No. 11/2017-CT (Rate) provides under Heading 9973: Group 99733 - Licensing services for the right to use intellectual property and similar products 997331 - Licensing services for the right to use computer software and databases 997339 - Licensing services for the right to use other intellectual property products and other resources, nowhere else classified. 3.4 The CBIC Explanatory Notes for Group 99733 clarify: "This group includes permitting, granting or otherwise authorizing the use of intellectual property products and similar products ... Note: This covers rights to exploit those products, such as licensing t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arged GST @18% on all its Tax Invoices. Q.4. Alternatively, whether, on the facts and in the circumstances of the case, the supplies of User License to access online content of Coursera proprietary digital platform made by the Petitioner is classifiable Heading 9984 (Online under Content Services). Submission:- Classification under Heading 9984 is possible but less specific than Heading 9973. 4.1. Heading 9984 covers 'Telecommunications, Broadcasting and Information Supply Services', and Group 99843 thereunder deals with 'On-line Content Services' including SAC 998439 ('Other on-line contents, nowhere else classified'). The Explanatory Notes describe SAC 998439 as including 'software that is intended to be executed on-line, except game software' and content delivered by subscription, membership fee, pay-per- play or pay-per-view. 4.2 However, the Jurisdictional Authority is of the considered view that Heading 9973 (SAC 997339) is a more specific and appropriate classification for the following reason: The predominant element of the transaction is the 'grant of a User License' - a right to access Coursera's intellectual property-based platform. The specific classificatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r providing the aforementioned digital content to OSDA. 5.4 The user license supplied by Coursera to OSDA through applicant shall enable technical students across colleges and universities to access courses on digital and other skill-based programmes, thereby providing them an opportunity to learn from the world's best courses in emerging technologies such as Artificial Intelligence, Machine Learning, Industrial [OT, Data Analytics, Engineering, Digital Manufacturing, Robotics, 3D Printing, GIS, Cyber Security, AR/VR, Data Warehouse Development, Cloud Development, and i0S/ Android Application Development, etc. 5.5 The OSDA will procure user license from Coursera through the applicant and as such the applicant acts as a distributor or sub-contractor for M/s. Coursera Inc., USA. The work order shall be issued by OSDA to the applicant and the applicant shall raise invoices to OSDA in INR for realization of payment for supply of Coursera user license. 5.6 The applicant has raised invoices to OSDA classifying the service as "other educational and training services, nowhere else classified" (SAC 999294) in some invoices and classifying "licensing service for right to use compute....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erein it has been observed that; - Coursera grants to Coursera channel partner (herein M/s. Unitech Engineer) a-non-exclusive, non-transferable, Non-sublicensable, revocable rights during the terms of this Agreement. - The products of the Coursera are licensed not sold. The products are subjected to copyrights, trademarks, trade secret and other intellectual Property Rights. Coursera channel platform shall not use any Coursera intellectual property or confidential information shared to create a competitive product or service. From the above Agreements, it appears that, the applicant in the case in hand, acts as intermediaries/sub-contractor between OSDA and Coursera for supply of user-based licenses enabling designated users to access online courses. Now the issue before us to classify the nature of service in the above transaction between OSDA and the applicant. 5.10 As far as classifying the said transaction as Educational Service (Question No. 01 of in the Application) is concerned, we find that, heading 9992 applies where: The supplier is engaged in imparting education or training. However, in the present case, the core obligation of the Applicant ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing 9973 as the predominant element of the transaction is the 'grant of a User License' - a right to access Coursera's intellectual property-based platform. The specific classification of a licensing service (Heading 9973) is more precise than the residual 'online content' classification (SAC under Heading 9984). As per the Explanatory Notes: where a service is capable of differential treatment for any purpose based on its description, the most specific description shall be preferred over a more general description.' In view of the above findings, we have arrived in a considered conclusion that, the supply of Coursera User Licenses by the applicant to OSDA is more appropriately classifiable under Heading 9973, specifically under SAC 997331 ("Licensing services for the right to use computer software and databases"), as it involves the transfer of a non-exclusive right to access a proprietary digital platform. 6.0 In view of the above, we pass the following order: RULING Q.1. Whether or not, on the facts and in the circumstances of the case, the supplies of Coursera User License made by the Petitioner to OSDA is classifiable under Heading 9992 (Education Service)? Ans:....