2026-VIL-161-AAR
  1. Home
  2. 2026-VIL-161-AAR

SGST Advance Ruling Authority

GST - Kerala AAR – Scope of phrase “Educational institution” - GST Exemption on Education and Training Programs - Coaching and Training for Professional Qualifications - Applicant provided coaching and training services for professional courses such as Chartered Accountancy, ACCA, CMA, CPA and similar qualifications offered by government-recognised professional bodies - Whether applicant qualifies as educational institution under Notification No. 12/2017 and whether coaching services for externally-conducted professional qualifications are exempt from GST - HELD - Applicant does not qualify as educational institution within meaning of clause (y) of paragraph 2 of Notification No. 12/2017 because applicant is not providing education directly as part of curriculum leading to recognised qualification - Educational institution means institution providing education as part of curriculum for obtaining qualification recognised by law. Applicant provides coaching and training to prepare students for examinations and qualifications conducted and awarded by professional bodies and universities, but itself neither conducts examinations nor awards qualifications - Fact that qualifications for which coaching imparted are recognised by law and courses conducted by government-acknowledged professional bodies is irrelevant. Essential requirement is that applicant must itself provide the prescribed curriculum and award the degree or qualification - Applicant acts as coaching institute offering preparatory coaching for examinations conducted by external bodies which does not bring it within definition of educational institution. There is distinction between conducting degree courses leading to recognised qualifications and providing preparatory coaching for examinations conducted by other bodies - Exemption under Serial No. 66 of Notification No. 12/2017-CT(R) not applicable to applicant's education programme and training services – Ordered accordingly - GST on Collection and Remittance of Examination Fees - Applicant collected examination fees, registration fees, subscription fees and other related charges from students payable to professional bodies and universities and remitted same without markup - Whether collection and remittance of such fees without charging separate consideration attracts GST and whether applicant qualifies as pure agent - HELD - Applicant has not established that examination fees and other charges collected from students and remitted to professional bodies and universities were received in capacity of pure agent within meaning of Rule 33 of CGST Rules, 2017 - Rule 33 provides that where supplier acts as pure agent of recipient of supply, expenditure or costs incurred by supplier can be excluded from value of supply if all prescribed conditions satisfied. Conditions require that supplier acts as pure agent under contractual agreement, that payment made on behalf of recipient be separately indicated in invoice, and that supplies procured as pure agent be in addition to services supplied on own account - Applicant has not clarified whether examination fees collected were under authorisation from students to act as pure agent or whether such amounts separately indicated in invoices issued to students - In absence of these material facts, Authority cannot hold that applicant acted as pure agent. Accordingly, amounts collected for examination fees and other charges cannot be excluded from taxable value of services supplied by applicant unless all conditions of Rule 33 are satisfied - GST on Textbooks and Study Materials - Applicant provided coaching and training with printed study materials, digital learning resources, recorded lectures and academic content as integral part without separate charge - Whether supply of textbooks and study materials qualifies for exemption or forms part of composite supply - HELD - Printed textbooks, printed study materials and digital learning resources are not independent supply but rather integral part of composite supply of commercial training and coaching services. Supply of textbooks and study materials along with coaching and training form composite supply where coaching and training services constitute principal supply - Supplies cannot be artificially segregated into supply of training services and supply of study materials when nature of transaction is composite supply. Fact that single consolidated fee charged for complete coaching programme including classroom sessions, printed materials and digital resources reinforces that materials form integral component of overall educational service. Study materials supplied only to students enrolled in applicant's courses and not available for independent purchase. Exemption available under Serial No. 119 of Notification No. 2/2017 for printed books cannot be claimed as supply does not qualify as independent supply of books - Printed study materials and resources as part of composite supply attract GST rate applicable to principal supply which is commercial training and coaching services. Supply therefore not eligible for exemption under notification provisions relating to books - GST on Foreign Exchange Fluctuations - Forex Gain or Loss - Whether Constitutes Consideration for Supply - Foreign exchange fluctuations arising on course registration and examination fees paid to foreign professional bodies - Whether foreign exchange differential retained by applicant constitutes consideration for supply and attracts GST - HELD - Differential amount arising on foreign exchange fluctuations in respect of course registration fees, examination fees, subscription fees and other charges payable to foreign professional bodies and retained by applicant does not constitute consideration for any taxable supply made by applicant - Section 2(102) of CGST Act provides that services include activity relating to conversion of money only if separate consideration charged for such activity. Foreign exchange movement can result in gain or loss and therefore cannot represent separate consideration. Occasional gain from forex fluctuations even if retained by applicant falls outside GST framework as no certain nexus exists between consideration and services rendered by applicant - Foreign exchange gain or loss is recognized in accounting records in accordance with accounting standards and neither passed on to nor recovered from students. Therefore differential amount arising on forex fluctuations not required to be included in taxable value of supply. Since no corresponding taxable supply exists for said amount, question of applicable SAC does not arise - GST on Redemption of Training Fees from Universities - Taxability of Support Services to Educational Institutions - Redemption of Training Fees - Applicant acted as training partner for university programmes providing training, coaching, academic support and infrastructure, receiving consideration as percentage of tuition fees collected - Whether support services provided to universities attract GST and applicable rate - HELD - Amounts received from universities as consideration for education and training activities carried out by applicant constitute consideration for taxable supply under Heading 9992 and are liable to GST at 18% in absence of applicable exemption - Applicant does not qualify as educational institution and therefore services provided to universities cannot claim exemption under Serial No. 66(a) of Notification No. 12/2017 which applies only to services provided by educational institutions. Services provided do not fall within categories specified under Serial No. 66(b) relating to transportation, catering, security, cleaning, admission or examination services to educational institutions -The activities of applicant in providing support services to universities are not covered under any exemption category. Redemption of training fees received from universities represents consideration for support services provided whic
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?