Hello, I am not clear whether a franchisee is supposed to pay GST on the share of revenue received by them from the company.
In my case, the service offered by the company is NSDC approved Vocational training courses. These are provided by the company to the students via various franchisee centers. The amount of fees collected by franchisee centers are directly deposited to company's bank account and a week later, the franchisee receives their share from the total collected revenue.
I am aware that Vocational training programs under NSDC are excluded from GST levy, however it is not clear whether the share of funds received by franchisee would be liable to GST?
Since the franchisee holds an agreement with the company and borrows the company's name, logo etc to run/operate its training center providing vocational courses, shouldn't it also be excluded from GST levy?
Please help and guide.
Thank you.
CAclubindia
