TaxTMI 
TaxTMI 
2026 (9) TMI 1812
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....ced. 4. Facts of the issue and Applicant's contention: 4.1 The applicant submits that they provide commerce-focused professional coaching programmes for courses such as Chartered Accountancy (CA), Association of Chartered Certified Accountants (ACCA), Certified Management Accountant (CMA India), Certified Management Accountant (CMA USA), Company Secretary (CS), Certified Public Accountant (CPA USA) and Diploma in International Financial Reporting Standards (DipIFRS - ACCA). The applicant also offers integrated programmes wherein coaching for professional qualifications is combined with online undergraduate and post-graduate degree programmes conducted in collaboration with University Grants Commission (UGC) recognised universities. The coaching programmes are offered through classroom as well as online modes of learning. 4.2 Applicability of GST on education programme and training services: With regards to the applicability of GST on educational programmes and training services, the applicant submits that the coaching programmes comprise structured classroom and/or online coaching sessions delivered by qualified faculty covering the syllabus prescribed by the respectiv....
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.... 66 of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017, the applicant submits that the collection and remittance of such examination fees and related charges should not attract GST in their hands. 4.3.3 Accordingly, the applicant seeks a ruling on whether the collection and remittance of examination fees, registration fees, subscription fees and other related charges to the respective professional bodies and universities, without retaining any markup or charging any separate facilitation fee, would attract GST and, if so, the applicable rate of tax and classification. 4.4 Applicability of GST on supply of printed study materials and online learning resources: The applicant submits that the coaching programmes include the supply of printed study materials, digital learning resources, recorded lectures, question banks, revision materials and other academic content designed in accordance with the syllabus prescribed by the respective professional bodies. The printed study materials and online learning resources are supplied as an integral part of the coaching programme and are not available for independent purchase by persons who are not enrolled in the applicant&#....
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....udents by way of any adjustment to the agreed course fee. 4.5.3 Accordingly, the applicant seeks a ruling on whether the foreign exchange gain or loss arising on account of the collection and remittance of examination fees, registration fees, subscription fees and other related charges to foreign professional bodies attracts GST and, if so, the applicable rate of tax and the appropriate Service Accounting Code (SAC). 4.6 Tax liability on redemption of training fees received from universities: The applicant submits that, in addition to providing professional coaching programmes, they offer integrated graduation and post-graduation programmes in collaboration with University Grants Commission (UGC) recognised universities. Further, it was submitted that, the applicant is engaged as a Training Partner for the approved programmes, under which they provide training, coaching, academic support and the necessary infrastructure for conducting such programmes, while the respective universities are responsible for admissions, regulatory compliances, conduct of examinations and award of degrees. 4.6.1 The applicant submits that the tuition fees for the university programmes are colle....
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....is of the submissions made by them along with the application as well as at the time of personal hearing. 7. Discussion and Conclusion: 7.1 The matter was examined in detail. Before proceeding to answer the questions raised in the application, it is necessary to decide the admissibility of the application for Advance ruling. Coming to the scope of advance ruling, as per clause (a) of Section 95 of the CGST Act, the term "advance ruling" means a decision provided by this Authority to the applicant on matters or on questions specified in sub-section (2) of Section 97 of the CGST Act in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. From the above, it is evident that an applicant can seek an advance ruling in relation to supply of goods or services or both undertaken or proposed to be undertaken by them. Section 97 of the CGST Act specifies the subjects on which an application for advance ruling can be made. Section 97 of the CGST Act reads as follows:- (1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such ....
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.... under clause (b), and the determination of the liability to pay tax under clause (e) of Section 97(2) of the CGST Act, 2017. Accordingly, the question is admitted. 7.2.4 The fourth question, regarding the applicability of GST on foreign exchange fluctuations, relates to the determination of the value of supply under clause (c) and whether a particular activity amounts to a supply of goods or services or both under clause (g) of Section 97(2). Accordingly, the question is admitted. 7.2.5 The fifth question, relating to the applicability of GST on the redemption of training fees received from universities, involves the classification of services under clause (a), the applicability of an exemption notification under clause (b), and the determination of the liability to pay tax under clause (e) of Section 97(2). Accordingly, the question is admitted. 7.3 The first issue for determination is whether the education programme and training services provided by the applicant are exempt from GST. The applicant has contended that the education and training programmes conducted by them in relation to professional courses such as ACCA, IMA (USA) and similar qualifications are exempt fr....
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....sed by any law for the time being in force; (iii) education as a part of an approved vocational education course. 7.3.3 Further, "approved vocational education course" is defined under clause (h) of para 2 of Notification No. 12/2017-CT(Rate) dated 28.06.2017, as amended, as given below: (h) approved vocational education course means,- (i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Education and Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or (ii) a Modular Employable Skill Course, approved by the National Council for Vocational Education and Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship; 7.3.4 Admittedly, the applicant is neither engaged in providing pre-school education or education up to higher secondary school or equivalent, nor does it provide education as part of an approved vocational education course. Consequently, the applicant does not fall within the ambit of sub-....
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..... Accordingly, it is clear that the applicant does not come within the ambit of "educational institution" contained in paragraph 2(y) of the Notification and therefore do not fulfil the eligibility criteria for exemption under Serial No. 66 of the Notification No. 12/2017-Central Tax (Rate). 7.3.9 This view is supported by the decision of the Kerala Appellate Authority for Advance Ruling in Logic Management Training Institutes Put. Ltd., wherein it was held that institutions conducting degree courses leading to qualifications recognised by law fall within clause (ii) of paragraph 2(y), whereas private coaching institutes imparting preparatory coaching for examinations conducted by other bodies do not become "educational institutions" merely on that account. Accordingly, from the facts and circumstances discussed above, it is clear that the exemption available under Serial No. 66 of the said Notification is not applicable to the education programme and training services supplied by the applicant. 7.4 The second issue for determination is whether there is any liability under the Goods and Services Tax laws on the applicant in respect of the collection and remittance of exami....
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.... (a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; (b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; (c) does not use for his own interest such goods or services so procured; and (d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for the supply he provides on his own account. 7.4.2 Section 15 of the Central Goods and Services Tax Act, 2017 says that generally transaction value, i.e., the total amount charged should be considered as the taxable value. Rule 33 carves out a limited exception whereby expenditure incurred by a supplier on behalf of the recipient in the capacity of pure agent can be excluded from the value of supply provided the conditions prescribed therein are satisfied. 7.4.3 In the present case, though the applicant has submitted that the examination fees, registration fees, etc. were collected from the students and remitted to the professional b....
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....ng the Principal Supply and should be considered as supply of coaching and training services in terms of Section 8 of the CGST Act. It therefore, means that contention of the applicant that the supply of printed books was exempt from GST under Serial No. 119 of Notification No. 2/2017-Central Tax (Rate), dated 28.06.2017 cannot be accepted as the supplies cannot be artificially segregated into Supply of Training & Coaching services and supply of study materials & resources when it is case of composite supply. 7.5.3 This view is also supported by the decision of the Kerala Appellate Authority for Advance Ruling in Logic Management Training Institutes Pvt. Ltd., wherein it was held that the supply of study materials and other educational resources as part of a coaching programme does not alter the essential character of the transaction, the principal supply remaining commercial training and coaching services. The inclusion of printed books, notes or digital learning resources as part of the coaching package does not convert the transaction into an independent exempt supply of books or educational services. 7.6 The fourth issue for determination is whether the differential am....
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.... for such fees collected from the University under SI. No. 66 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 but have not specified the sub-category under which they are claiming such exemption. 7.7.2 As already discussed for Question No. 1, the applicant does not qualify as an "educational institution" under clause (y) of paragraph 2 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and consequently, is not eligible for the exemption available under Serial No. 66(a) of the said Notification. Therefore, let's now examine if they are covered under Serial No. 66(b) of the said Notification, the provisions of which are reproduced as under: "(b) to an educational institution, by way of,- (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; (v) supply of online educational journals or periodicals:" 7.7.3 On considering the facts of the case, even i....
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....ve professional bodies and universities are received by the applicant in the capacity of a pure agent within the meaning of Rule 33 of the Central Goods and Services Tax Rules, 2017. Accordingly, this Authority is unable to hold that such amounts are liable to be excluded from the value of taxable supply under Rule 33. The admissibility of such exclusion shall depend upon the fulfilment of all the conditions stipulated under the said Rule. Question No. 3. Whether the notes / materials including printed books published by Government-recognized institutions like ACCA, IMA USA, etc. and notes from online facilities of the said institutions like ACCA, IMA USA, etc. which are approved by Govt of India provided to students is subject to GST? Whether there is any tax liability on selling of textbooks to its students? RULING: The Printed textbooks, printed study materials and digital learning resources are not an independent supply, but rather part of Commercial Training and Coaching Services, making it a composite supply with the latter being the Principal supply. Therefore, they do not qualify for exemption under Serial No. 119 of Notification No. 2/2017-Central Tax (Rate) dated 28....