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Service rendered without element of any charge may not qualify for GST
TIWN
Service rendered without element of any charge may not qualify for GST
PHOTO : TIWN

New Delhi, July 16 (TIWN) Service rendered by an individual or institution for facilitating overseas payments without any element of service charge may not be liable to pay GST, a tax authority has held.

The Kerala Authority of Advance Ruling (AAR) has ruled that no GST is payable on payment of examination fee made on behalf of students as a pure agent without any element of service charge for such service, either from the students or the agency where the fee is being routed.  The order has wider ramifications as it would make several other facilitation services provided in various sectors tax free. But legal experts said that the exemption may be specific in nature as a service rendered by an education institute for students.  The AAR order came on an application of Cigma Medical Coding Private Ltd, engaged in providing training for students in medical coding. The medical coding examination is conducted and certified by the American Academy of Professional Coders (AAPC) having its headquarters in Salt Lake City, Utah, the US.

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