Exam Support services will be Taxable at 18%: AAR Haryana

Exam Support services will be Taxable at 18%: AAR Haryana

The Authority of Advance Ruling of Haryana has given a ruling for the exam support services will be taxable at 18%. The applicant M/s. BC Examination and English Services Limited Private limited is providing the support services for conducting the exams. The applicant is the subsidiary of the British Council which is the UK’s International Organization for the Cultural relationship and Educational Opportunities. 

Query by the Applicant

Tere are two questions raised by the applicant:

1. Whether All the activities Involved in the exam support services constitute a mixed supply or a composite supply?
2. What will be the Tax rate applicable under GST on the exam support services?

Download the full Ruling with the explanation by clicking the Image:

Ruling by the AAR

1. As observed on the facts, the activity involved in the exam support service as proposed at Schedule-I part-A and Part-B of the proposed agreement constitute a composite supply.
2. Since the principal supply is conducting the IELTS exam. It is covered under the service code 999299, Group 99929 and Heading 9992 as education support services. Therefore Taxable @ 18%(9% CGST and 9% HGST) vide sr. no. 30 of the notification 11/2017 Central Tax(Rate) dated 28/06/2017 and corresponding State notification No. 46/ST-2 dated 30/06/2017.