The Authority of Advance Ruling ruled that Educational and Training Services are ‘Supply of Services’ under GST if employer-employee relationship is not established.
The applicant is an individual having temporary user ID 082100000156AR4 under the Goods and Services Tax Act since 16.03.2021 and located at 26/B-5/H/803, Saryu Apartment, Jaipur, Rajasthan302033. The applicant was exhibiting details of supplying educational related services etc. in his returns furnished in FORM GSTR-3B and FORM GSTR-1 for the respective tax periods and was accordingly paying respective Goods and Services tax on the same. The applicant has now received a new offer from a prospective service recipient for providing educational related services etc from his place located at 26/B5/H/803, Saryu Apartment, Jaipur, Rajasthan-302033.
The applicant sought the advance ruling on the issue of whether the services under consideration will be covered under entry 1 of schedule III of RGST/ CGST Act or not?
The coram of J. P. Meena (Central Tax) and M. S. Kavia (State Tax) found that there is no establishment of the term ’employment’. Hence, activity or transaction between service provider i.e. applicant and service receiver i.e. M/s Mentors Eduserv does not constitute employee-employer relation.
The coram further found that the activity or transaction is not covered under entry no. 1 of the Schedule III of the act and resulted in a ‘supply of service’ as per Section 7 of the CGST Act, 2017 and tax will be leviable under section 9 of the CGST Act, 2017 and valuation thereof will be done as per section 15 of the CGST Act, 2017.
The coram ruled that no, services under consideration will not be covered under entry 1 of schedule III of RGST/ CGST Act, 2017.