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The activity of collecting exam fee (charged by any university or institution) from students and remitting the same to that particular university or institution without any value addition to it is a service as a pure agent and hence the value is excluded from the taxable value.

Valuation of Supply — The Applicant provides services in the field of education and set up of coaching and training classes/ Centres in relation to the same. In this process the applicant collects certain amount as exam fee from the students and remits the same to the respective institute or college or universities without any profit element.  The Applicant sought Advance ruling in respect of its services and applicability of tax. The Authority ruled out that the activity of collecting exam fee (charged by any university or institution) from students and remitting the same to that particular university or institution without any value addition to it is a service as a pure agent and hence the value is excluded from the taxable value of the applicant as per Rule 33 of the Central GST Rules / Karnataka GST Rules. — Arivu Educational Consultants Pvt. Ltd., In Re… [2019] 16 TAXLOK.COM 124 (AAR-Karnataka)