In re Symmetric Infrastructure Private Limited (GST AAR Rajasthan)
Q.1 Applicant supplies services of coaching to students which also includes along with coaching, supply of goods/printed material/test papers, uniform, bags and other goods to students. Such supplies are not charged separately but a consolidated amount is charged, the major component of which is imparting of coaching. In such circumstances, whether such supply shall be considered, a supply of goods or a supply of services?
Ans:- Supply by the Applicant will be considered ” Supply of Service”.
Q. 2. If the answer to the aforementioned first question is supply of service, whether such supply shall be considered as composite supply? If yes. what shall be the principal supply?
Ans:- Yes, such supply shall be considered as Composite supply, and Coaching service shall be principal supply.
Q.3. Applicant provides coaching service under a business model through Network Partners as per sample agreement attached, containing obligations of Applicant and Network partners. Accordingly, the network partner provides the services to the students on behalf of Applicant. In such a case, who shall be considered as supplier of service and recipient of service under the agreement?
Ans: – Applicant will be service provider to the students and Network partner will be service provider to the applicant.
Q.4 Subject to Q. No. 3 above, what shall be the value of service provided by Applicant to students and by network partner to Applicant?
Ans: – Total consolidated amount charged for which Tax invoice generated by the applicant will be the value of service supply by the applicant.
Q 5. Whether both, Applicant and network partner can avail eligible ITC for their respective supplies?
Ans:- Applicant can avail eligible ITC as per provisions of GST Act, 2017.
Also read Ruling on Same issue by AAR Rajasthan on application by In re Resonance Eduventures Limited in which they taken a different view and held Supply of Coaching Services as Mixed Supply while in this ruling they held the same as Composite Supply-Supply of Coaching Services with Goods is mixed supply: AAR Rajasthan
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, RAJASTHAN
Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
