Shanti Prime Publication Pvt. Ltd.
Composite supply of service—Rate of tax—In the instant application, applicant is a subsidiary of the British Council which is the U.K.'s International Organization for cultural relations and educational opportunities. Applicant has agreed to provide ‘Exam Support Services’ and Student Facilitation Services to BCUK.
The question before authority is that Whether all the activities involved in the exam support services constitute a mixed supply or a composite supply? And
What will be rate of GST applicable on these exam support services?
Held that— A perusal of the pan-A, B & C of schedule-I appended to the copy of proposed agreement submitted on record, reveals the type of services as mentioned in part-B and part-C or the schedule-I are the services which are proposed to the provided by the applicant - Under part-C of schedule-I to the agreement it is specified that the Applicant will also provide student facilitation services.
Since the above services are for conducting the IELTS exams and are so bundled with each other that these cannot have an independent existence and therefore these are composite supply of services. Since the principle supply is of the service of conducting exams it is rightly classifiable under service code 999299 group 99929 and heading 9992 as education support service and therefore taxable @ of 18% (9% CGST and 9% HGST) vide sr. 30 of N/N. 11/2017 Central Tax (Rate) dated 28.06.2017 and corresponding State N/N. 46/ST-2 Dt. 30.06.2017.
Ruling— the activity involved in the exam support service as proposed at schedule-I part-A and B of the proposed agreement constitute a composite supply.
Since the principle supply is conducting of IELTS exam it is covered under Service Code 999299 Group 99929 and Heading 9992 as education support service and therefore taxable @ of 18% (9% CGST and 9% HGST) vide sr. no. 30 of notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 and corresponding State notification no. 46/ST-2 Dt. 30.06.2017. BC Examinations & English Services India Pvt. Ltd., In Re...  2 TAXLOK.COM 157 (AAR-Haryana)