2018 (9) TMI 1040 - AAR - GST

Exemption from GST - Executive Post Graduate Programme in Management (EPGP) - applicability of exemption notification no.12/2017 Central Tax (Rate) and corresponding notification under MPGST Act, 2017 - legal status of the IIMs post enactment of IIM Act 2017, which came into effect from 31st January 2018. Whether the course - Executive Post Graduate Programme in Management (EPGP), after enactment Indian Institute of Management Act 2017 notified effective from 31st January 2018, is exempted from Goods and Service Tax? In case of exemption to EPGP, will total amount of fees collected towards EPGP for the academic session 2018-19 is exempted, whether collected before or after enactment of IIM Act 2017 or only amount collected after enactment of IIM Act 2017? Held that - The language of entry no.67 is quite clear and leaves no ambiguity whatsoever. This entry seeks to exempt various education programmes conducted by IIMs, except the Executive Development Programme, from payment of GST. It is thus clear that irrespective of enactment of IIM Act 2017, the intention of the legislature was no to tax the flagship education programmes conducted by these Institutions. However, specific exclusion of Executive Development Programme from exemption has been made loud and clear, leaving no scope for any interpretation or reading between the lines. Tthe exclusion of Executive Development Programme from exemption becomes even more prominent and emphatic. Moreover, there is no iota of ambiguity in the language of the impugned notification. Further, the principle of Strict Interpretation of the statute has been propounded by the Hon ble Supreme Court in catena of judgments, and one has to strictly go by what is written in the statute. Ruling - The Executive Post Graduate Programme will not be eligible for exemption from GST as the same has been categorically excluded from exemption under Entry No.67 to the Notification No.12/2017-Central Tax (Rate) and corresponding notification under MPGST Act, 2017 - the Executive Post Graduate Programme being conducted by the Applicant shall be chargeable to GST, irrespective of enactment of IIM Act 2017.

Summary

Issues involved:
- Applicability of GST exemption to Executive Post Graduate Programme in Management (EPGP) after the enactment of Indian Institute of Management Act 2017.
- Clarification on whether the fees collected for EPGP for the academic session 2018-19 are exempted from GST, irrespective of collection timing.

Analysis:

Issue 1: Applicability of GST exemption to EPGP:
The case involved a dispute regarding the exemption of the Executive Post Graduate Programme in Management (EPGP) from Goods and Service Tax (GST) after the enactment of the Indian Institute of Management Act 2017. The applicant argued that post the enactment of the Act, the EPGP provided by the institute should qualify for exemption under Notification No. 12/2017-Central Tax (Rate). However, the Department's view, as provided by the Joint Commissioner, CGST & Central Excise, stated that the EPGP does not qualify for exemption under the said notification. The Authority analyzed the legal status of IIMs post the enactment of the Act and examined the specific entries in the notifications to determine the eligibility for exemption.

Issue 2: Fees collection for EPGP and GST exemption:
The second issue raised was related to the collection of fees for the EPGP for the academic session 2018-19 and whether the fees, regardless of the collection timing (before or after the enactment of the IIM Act 2017), are exempt from GST. The Authority considered the specific entries in the notifications and the nature of the EPGP program to determine the applicability of GST exemption to the fees collected for the EPGP.

Authority's Findings:
After careful consideration of the submissions made by the applicant, the Department's view, and the relevant provisions of the notifications, the Authority made the following rulings:
1. The Executive Post Graduate Programme is not eligible for exemption from GST as it has been expressly excluded from exemption under Entry No. 67 of Notification No. 12/2017-Central Tax (Rate).
2. The Executive Post Graduate Programme conducted by the Applicant is chargeable to GST, irrespective of the enactment of the Indian Institute of Management Act 2017.
3. The ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104(1) of the GST Act.

In conclusion, the Authority clarified the applicability of GST exemption to the Executive Post Graduate Programme and addressed the issue of fees collection for the program, providing a detailed analysis based on the relevant legal provisions and notifications.