Case Law Details
In re 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.
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Sir,
Kindly refer to my article published on your website on 16.1.2022, titled,
“Educational expenses-Contradictory Advance Rulings of AAR Rajasthan”, wherein I drew attention to the ruling dated 28.12.2021 tendered by the same AAR of Rajasthan in,
Resonance Eduventures Limit, Kota (Raj) (2022) 37 J.K.Jain’s GST & VR 19, with similar facts,
where it has been held that Coaching Services to students including supply of goods/printed material/test papers, uniform, bags and other goods to students, which are not charged separately but a consolidated amount is charged, the major component of which is imparting of coaching will be treated as “Mixed Supply” of goods & services liable to highest rate of tax.
My View.─In my view, it is a case of ‘Mixed Supply’ & the Ruling given in the case of Symmetric Infrastructure Private Limited by AAR Rajasthan, is wrong.
For further details, one can refer my analysis on Page R-8 published in the magazine (2022) 37 J.K.Jain’s GST & VR.
CA Om Prakash Jain s/o J.K.Jain, Jaipur
Tel No. 9414300730