Classification of service— In the instant case, the applicant in their written submission stated that they were providing Educational and Training Services to M/s Mentors Eduserv, Bihar and were paying tax under category of Other Educational and Training Services under HSN 999294 of chapter 99 of the tariff code which are taxable @ 18% under GST law.

Further, they stated that they have been advised by the Income Tax authority that the service provided by them is in the nature of employer and employee. Therefore, it will be out of the purviews of GST Act as per entry 1 of schedule III read with Section 7(2).

The applicant wants to know whether the services under consideration will be covered under entry 1 of schedule III of RGST/ CGST Act or not.

This authority found that agreement has been entered into on a "principal to principal" basis and there is no scene in respect of any employment. Hence, it can be said that there no Service is provided by an employee to the employer in the course of or in relation to any employment in the instant case.

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. Thus, we find that this 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.

Held that— Services under consideration will not be covered under entry 1 of schedule III of RGST/ CGST Act, 2017.