Levvy of GST— In the instant case, the applicant i.e. Team lease education foundation (TLEF) submits that it is an approved NEEM (National Employability Enhancement Mission) Facilitator under the All India Council for Technical Education Regulations, 2017.  

Question on which Advance Ruling sought—

1. Whether, the Applicant is acting as a pure agent of the Industry partner to the extent of reimbursement received towards stipend paid to Trainees on behalf of Industry partner as part of training agreement and therefore the said reimbursement is not chargeable to GST?

2. Whether, the Applicant is acting as a pure agent of the Industry partner to the extent of reimbursement received against cost of employee compensation insurance obtained for the benefit of Trainees by the Applicant and reimbursed by the Industry partner as per the training agreement and therefore the said reimbursement is not chargeable to GST?

The issue before us to decide is whether TLEF is pure agent of Industry Partner with respect to Stipend and Insurance.

Held that— 

1. TLEF is pure agent of Industry Partner to the extent of reimbursement of the actual amount Stipend incurred by it and thereby said reimbursement amount is not leviable to GST.

2. TLEF is not pure agent of Industry partner for Insurance premium amount, as TLEF does not satisfy clause (d) to the explanation of Rule 33 CGST Rules. Thereby, insurance amount reflected its invoices, shall not be deducted from arriving at taxable value and thereby leviable to GST.