TaxTMI 
TaxTMI 
2026 (9) TMI 1005
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....ection 103(1) of the CGST Act, 2017 and the RGST Act, 2017, this Advance Ruling pronounced under Chapter XVII of the Acts shall be binding only: (a) on the applicant who had sought it in respect of any matter referred to in Section 97(2) of the Acts; and (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the CGST Act, 2017 and the RGST Act, 2017, this Advance Ruling shall be binding unless the law, facts or circumstances supporting the original ruling have changed. 4. Under Section 104(1) of the CGST Act, 2017 and the RGST Act, 2017, where the Authority finds that the Advance Ruling has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of the Acts or the Rules made thereunder shall apply to the applicant as if such Advance Ruling had never been made. 5. Any appeal against this Advance Ruling shall lie before the Appellate Authority for Advance Ruling, Rajasthan, in terms of Section 100 of the CGST Act, 2017 and the RGST Act, 2017. Such appeal ....
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....private limited company, or any other registered entity - and requests that the invoice be issued in such entity's name, considering that they are paying the consideration. 1.6 In the ordinary course of operations, the Applicant is likely to receive requests to issue a valid GST tax e-invoices with IRN in the name of a GST registered person if the parents / guardian or any business enterprise is registered for GST purpose. 1.7 Considering the consideration is received from the recipient (i.e. parents or guardians or business enterprise) who are liable to pay the course fees for student, the Applicant intends to treat such registered person as the "recipient" within the meaning of Section 2(93)(a) of Central Goods and Services Act, 2017 ("CGST Act"). 1.8 Upon receipt of a 15 digit active GSTIN, the Applicant is likely to issue a GST compliant tax invoice capturing the GSTIN of such registered person. 1.9 The Applicant determines the place of supply for such transactions in accordance with Section 12(5)(a) of the IGST Act, 2017, treating the location of the registered person as the place of supply. Consequently, the Applicant will report all such tax invoices in GSTR-1 as....
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....onditions and restrictions as may be specified in the said notification." 2.3 In this regard, the Government vide Notification No. 13/2020-Central Tax dated 21 March 2020 (as amended from time to time) has notified that registered person, other than a government department, a local authority, a Special Economic Zone unit and those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds five crore, shall generate E-invoice in respect of supply of goods or services or both to a registered person or for exports. Relevant extract of Notification No. 13/2020-Central Tax is reproduced below: "G.S.R. 196(E).- In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred as said rules), the Government on the recommendations of the Council, and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 70/2019-Central Tax, dated the 13th December, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (....
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.... and requests that the invoice be issued in the name of parent / guardian / business enterprise. 2.9 GST law does not expressly mandate verification of the recipient's GSTIN by the supplier while issuing an invoice. In the absence of any specific statutory requirement in this regard, the supplier is generally expected to rely on the GSTIN as furnished by the recipient in the ordinary course of business. This implies that, where a GSTIN Is furnished by the recipient, the supplier is entitled to rely upon the same as a valid identifier for compliance purposes, subject only to reasonable and prima facie verification. Such reliance would ordinarily be displaced only in cases of evident inconsistencies or defects, such as an invalid structure (e.g., not conforming to the prescribed 15-digit format) or inactive status on the GST portal. 2.10 While not explicitly required by law, the Applicant submits that its due diligence obligation is limited to verifying the active status of the GSTIN furnished through the GST Common Portal to ensure that such GSTIN can be reported in GST returns and such supplies can be classified as B2B supplies. 2.11 The GST framework is a self-executing c....
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....clude an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied;" 2.16 The Applicant submits that the determination of the "recipient of services" must be guided foremost by the statutory definition provided under Section 2(93)(a) of CGST Act, which unequivocally provides that, where consideration is payable for a supply of services, the recipient shall be the person who is liable to pay such consideration. 2.17 Accordingly, the liability to discharge consideration assumes paramount importance and constitutes the primary and determinative factor in identifying the recipient of services for GST purposes. 2.18 The Applicant submits that the student is merely the end-user or beneficiary of the service. The GST law does not equate "beneficiary" with "recipient" where consideration exists. Since admission / course fees are provided for consideration, clause (a) of Section 2(93) of CGST applies exclusively, thereby excluding the student from being treated as the recipient. 2.19 Notification No. 13/2020 does not stipulate any obligation on the Applicant to validate the business purpose behind the recipient's GSTIN. Accordingly, th....
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....inct from the contracting or paying party does not, in itself, confer the status of 'recipient' upon such person under CGST Act. The statutory framework does not recognise "economic benefit" or "ultimate consumption" as the decisive criterion, particularly where the contractual obligation and consideration flow are clearly identifiable and legally enforceable. 2.26 This statutory position aligns with commercial reality, where the economic burden of the service is borne entirely by the parent or guardian or business enterprise, and the Applicant structures its transactions, pricing, and recovery mechanisms accordingly. GST law recognises the person who bears economic liability rather than mere physical recipient of service. 2.27 Commercially, the Applicant will raise invoices exclusively on recipient liable to pay consideration (i.e. the parent or guardian or business enterprise). Any payment defaults, disputes, or recovery proceedings will be directed against the parent. There exists no independent billing, liability, or recovery mechanism against the student. These practical aspects serve as strong evidentiary indicators of the intended and actual recipient of services. 2....
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.... the service provider and is contractually obliged to make the payment. 2.33 Reliance is placed on the judgement of Kerala High Court in case of Intertek India Private Limited [2026-VIL-573-KER dated 8 June 2026] wherein it was held that the petitioner discharged the entire liability towards the consideration for the transaction and also paid the tax, thus, on account of the same, the petitioner became qualified to be treated as the "recipient" as defined under Section 2(93) of the Act. 2.34 Further, reference is drawn to the ruling of Tamil Nadu Appellate Authority for Advance Ruling in case of Rajes Rama Varma [2020 (42) G.S.T.L. 278 (App. A.A.R. - GST - T.N.) dated 18 August 2020] wherein the applicant was engaged in providing professional and consultancy to US client of Doyen Systems (Principal). It was held that the recipient of services is the Principal since the consideration is paid by the Principal and the same cannot be directly claimed from US client, 2.35 Reliance is placed on the judgement of Bombay High Court which was affirmed by Hon'ble Supreme Court in case of K.C. Overseas Education Pvt. Ltd. [(2025) 34 Centax 222 (S.C.)/2025 (102) G.S.T.L. 195 (S.C.) dat....
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....amended from time to time does not stipulate the applicant to validate the GSTIN of GST registered customer. 2.41 Consequently, the Applicant, as supplier of services, is mandatorily required to issue a tax e-invoice along with IRN for such supplies in compliance with the prescribed framework. The applicability of e-invoicing is thus triggered by the status of the recipient and not by the nature of the end-beneficiary of the service. GST law does not provide an option to applicant to not follow the requirements laid down by Notification No. 13/2020-Central Tax dated 31 March 2020 (as amended from time to time). 2.42 Accordingly, the supplier of services cannot decline or avoid issuance of an e-invoice along with IRN as per Notification No. 13/2020-Central Tax dated 31 March 2020 as amended from time to time on the ground that the services are rendered to a student. Once the conditions prescribed under the notification are satisfied, particularly the provision of a valid GSTIN by the recipient, the requirement to issue an e-invoice becomes compulsory as per Notification No. 13/2020-Central Tax dated 31 March 2020 (as amended from time to time), leaving no scope for the supplie....
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....the law. 2.48 In the present case, the Applicant is planning to raise GST compliant tax e-invoice along with IRN on the recipient liable to pay consideration capturing the GSTIN and other relevant particulars as prescribed under Section 31 of CGST Act read with Rule 46 and 48 of CGST Rules, Subsequently, such recipient (i.e. parents or guardians or business enterprise) liable to pay consideration may be claiming ITC on such invoices, however, the Applicant is not legally bound to verify the eligibility of such ITC. 2.49 Section 16 of CGST Act states that every registered person should be entitled to claim ITC on goods and services used or intended to be used in the course or furtherance of his business. 2.50 Further, the registered person should be entitled to claim ITC on goods and services only after fulfilment of following conditions: a) Possession of valid GST invoice b) Invoice details are furnished by the supplier in their GST returns c) Goods and services are received d) Tax on such supply has been paid to the Government e) GST returns are filed by the recipient 2.51. Section 17(5) opens with: 'Notwithstanding anything....
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....as this would require access to, and evaluation of, the recipient's commercial activities and intent, which lie beyond the statutory obligations of the supplier. 2.57 Though, coaching fees for a student appears as personal expenditure in nature, the determination of whether ITC is admissible requires examination of the recipient's internal records and business nexus - which are not accessible to the Applicant. Having said that, there are multiple reasons for a registered person to avail such services viz: a. Employee Welfare / HR Policy: Coaching fees reimbursed to employees or their dependents as part of a documented welfare or retention policy, constituting legitimate business expenditure under Section 37 of the Income Tax Act, 1961; b. CSR Obligations: Expenditure on education or skill development under Section 135 of the Companies Act, 2013 read with Schedule VII thereof; c. Talent Development / Scholarship Programmes: Where a business entity sponsors meritorious students - including children of employees or business associates - as part of a documented talent investment or scholarship programme forming part of its business promotion strategy; ....
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....s to the supplier's statutory obligations. 2.63 The GSTN system itself serves as the primary verification mechanism. The supplier verifies GSTIN validity on the portal; the invoice auto-populates in GSTR-2B; invoice matching, return scrutiny, and audit mechanisms under Sections 65, 66, 73, and 74 of CSGT Act serve as systemic checks against any downstream discrepancies. The supplier should not be required to substitute for these built-in safeguards through manual investigation. 2.64 The GST framework is designed as a technology-driven, self-policing system, where the supplier's role is limited to accurate disclosure and tax payment. The recipient's ITC is verified through system-based validations, including GSTR-2B auto-population; Invoice matching under Section 16(2)(aa) of CGST Act and data analytics and audit mechanisms. The existence of these robust systemic controls clearly indicates that the legislature never intended to impose parallel verification responsibilities on suppliers. 2,65 As per Section 155 of CGST Act, the burden to prove the eligibility of ITC under GST law lies with the recipient of service and not on the supplier as per Section. The Applicant submits....
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....g GSTIN and in compliance with Notification No. 13/2020-Central Tax dated 31 March 2020 as amended from time to time, not at the Applicant's initiative or suggestion 2.70 The Applicant submits that its due diligence obligation is limited to verifying the validity and active status of the GSTIN furnished through the GST Common Portal (verified also through API) to ensure it is able to generate GST compliance invoice with IRN under Notification No. 13/2020-Central Tax dated 31 March 2020 as amended from time to time, The GST system provides real-time verification of GSTIN status (active / suspended / cancelled) at the time of raising GST compliance E invoicing with IRN under Notification No. 13/2020-Central Tax dated 31 March 2020 as amended from time to time. Once the Applicant confirms the GSTIN is valid and active, no further investigation is warranted or contemplated by law or by Notification No. 13/2020-Central Tax dated 31 March 2020 as amended from time to time. CONCLUSION In view of the above analysis, it is concluded that Notification No. 13/2020-Central Tax dated 31 March 2020 (as amended), read with Rule 48(4) of CGST Rules, is applicable to the Applicant, in resp....
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.... dated 31 March 2020 (as amended from time to time) is affected by lack of clarity regarding admissibility or otherwise of input tax credit in the hands of the recipient or without any further obligation to investigate the recipient's business purpose, ITC eligibility, or the nature of the expenditure? D. COMMENTS OF THE JURISDICTIONAL OFFICER:- Comments received from the Office of Deputy Commissioner, State Tax, Circle-E, ZONE- KOTA Divisional Kar Bhawan, KOTA, Rajasthan vide letter Sr.No. 114, Dated 13.07.2026 are as under:- The point-wise comments, being the jurisdictional officer in respect of the applicant registered in this Circle, on the two questions raised in the captioned application are submitted hereunder. Each question, as posed by the applicant, is first reproduced and the comment of the Department is then set out against it. It may be noted at the outset that the notification in question, being Notification No. 13/2020-Central Tax, is dated 21.03.2020 (and not 31.03.2020 as described at places in the application), and that the applicant's submissions in Annexure-B proceed on a foundational premise as to the identity of the "recipient" of the supply, on....
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....der built into the question itself, namely, "in case of supplies to parents or guardians or business enterprises ... who are liable to pay consideration." That framing presupposes the very matter that is contested - that the fee-paying parent, guardian or business enterprise is the "recipient" of the coaching service under Section 2(93)(a), and that the student is merely the beneficiary. This premise is not legally sustainable. B.3 The supply in question is coaching / educational service, which is rendered to, and is wholly consumed by, the enrolled student. The applicant's own narration confirms this: at admission it collects the details of the student, the enrolment is of the student, and the GSTIN of a third party, if any, is collected only later on request (paras 1.5 and 2.6 of the Annexures). The "recipient" under Section 2(93) must be identified in relation to the actual supply; where the service is provided to and enjoyed by the student, the student is integral to, and cannot be divorced from, the identity of the recipient. B.4 Section 2(93)(a) cannot be read in isolation, as though the mere payment of consideration converts any registered payer into the recipient. The....
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....stination- and consumption- based scheme of the GST. B.7 Form cannot be permitted to override substance. The mere capturing of a registered person's GSTIN and the issuance of an invoice in that person's name does not, of itself, transform what is in substance a business-to-consumer educational supply rendered to a student into a business-to-business supply. The e-invoicing obligation is attracted only where the supply is genuinely made to a registered recipient; it cannot be invoked, nor a B2B character claimed, on the strength of an Invoicing arrangement that does not reflect the true recipient of the service. B.8 The comment of the Department on Query 1 is, therefore, as follows: Notification No. 13/2020 applies to the applicant in respect of genuine business-to-business supplies made to a registered recipient, and to that extent the applicant's e-invoicing obligation is not in doubt. However, Query 1 does not admit of the unqualified affirmative answer implicit in its framing. It does not follow, and it is not correct, that every parent, guardian or business enterprise who pays the fee and furnishes a GSTIN is thereby the "recipient" of the coaching service. That premise, ....
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....-side credit cannot be converted into a shield for an invoicing arrangement that does not reflect the true recipient of the service. B.12 The comment of the Department on Query 2 is, therefore, as follows: to the limited extent the question asks whether the applicant's obligation under Notification No. 13/2020 is affected by the admissibility of input tax credit in the recipient's hands, the answer is in the negative, the two operating independently. That being settled, no further or affirmative ruling is warranted; and in particular no finding should be recorded that endorses the recipient-classification premise addressed under Query 1, the more so in view of the applicant's own acknowledgement that the underlying fee is personal in nature. PART C- STATEMENT UNDER THE FIRST PROVISO TO SECTION 98(2) C.1 As specifically called for in your reference, it is reported that, on verification of the records of this office, the factual position regarding whether the question raised is already pending or decided in any proceedings in the applicant's case is as under [to be confirmed and completed from records]: (a) Audit / scrutiny / investigation: NONE (b) Any pro....
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.... mentioned as being under the "GST Act". 2. 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. 3. The applicant, M/s ALLEN CAREER INSTITUTE PRIVATE LIMITED, CP-06, SANKALP, INDRA VIHAR, KOTA, Rajasthan-324005, is a private limited company registered with the GST department having GSTIN 08AAVCA8216C1ZI. The applicant is engaged in the provision of commercial coaching services to students preparing for competitive examinations such as IIT-JEE and NEET, both at its physical centres in Rajasthan and other States and through digital/online modes via its website and mobile application. The applicant proposes to introduce additional batches of commercial coaching courses and envisages that the consideration for such courses would be paid by parents, guardians or sponsoring business enterprises, some of whom may be registered under GST and may request issuance of tax invoices/e-invoices in their name against their GSTIN. 4. The issue ra....
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....rectly or indirectly, on the identity of the recipient or the place of supply of any particular transaction. 7. Further, Section 31(2) of the CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017 requires a registered person supplying taxable services to issue a tax invoice containing the prescribed particulars, Including the GSTIN of the recipient where the recipient is registered, Rule 48(4) of the CGST Rules, 2017 provides that the invoice shall be prepared by such class of registered persons as may be notified, by including the particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number (IRN) on the Common Portal. In exercise of the powers under Rule 48(4), Notification No. 13/2020-Central Tax dated 21.03.2020 was issued, as amended from time to time. 8. Under Notification No. 13/2020-Central Tax dated 21.03.2020, as amended, vide Notification No. 10/2023-Central Tax dated 10.05.2023, a registered person, other than a government department, a local authority, a Special Economic Zone unit and those referred to in sub-rules (2), (3), (4) and (4A) of Rule 54 of the CGST Rules, 2017, whose aggregate turnover in any preceding financial year from 201....
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....ases and were decided on their own facts and cannot be applied in general terms. 10. As regards to Query 2, the GST law clearly segregates the compliance obligations of the supplier from the entitlement of the recipient to input tax credit. The obligation to prepare an e-invoice under Rule 48(4) of the CGST Rules, 2017 read with Notification No. 13/2020-Central Tax dated 21.03.2020 is triggered upon satisfaction of the conditions prescribed therein, namely, the status and turnover of the supplier and the supply being made to a registered person; it is not made conditional, by the notification or otherwise, upon the admissibility of input tax credit in the hands of the recipient, which is governed separately by Sections 16 and 17 of the CGST Act, 2017, and in respect of which the burden of proof lies on the person claiming the credit in terms of Section 155 of the CGST Act, 2017. To this limited extent, the supplier-side compliance operates independently of the recipient-side credit. At the same time, however, this does not mean that any transaction of the applicant stands accepted as a B2B supply, nor does it amount to any finding on the admissibility of credit in the hands of a....