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2018 (9) TMI 1041 - AAR - GSTExemption from GST - affiliation to specified universities and providing degree courses to students under related curriculums - N/N. 12/ 2017 Central Tax dated 28.06.2017. Whether the services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums are exempt from Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 Central Tax dated 28.06.2017? Held that - Since the Services provided by an educational institution to its students, faculty and staff is exempt from tax under the Central Goods and Services Tax Act and the applicant qualifies as an educational institution in so far as those courses for which affiliation has been obtained from the University in the State of Karnataka and for which University Curriculum is prescribed and the qualifications recognized by the law for the time being in force is given after the conduct of examinations by such University, the applicant is exempted from Goods and Services Tax. Similar notification is also present in the Karnataka Goods and Services Tax Act and hence the exemption is applicable mutatis mutandis under the Karnataka Goods and Services Tax Act also. Ruling - The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums to its students exempt from Central Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28.06.2017 subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force. The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums to its students exempt from Karnataka Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 State Tax (Rate) dated 28.06.2017 subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.
Issues involved:
1. Interpretation of exemption under entry no. 66 of Notification No. 12/2017 - Central Tax dated 28.06.2017 for educational services provided by an institution in affiliation with universities. 2. Determination of whether services provided by the applicant in affiliation with specified universities for degree courses are exempt from Goods and Services Tax. Analysis: Issue 1: Interpretation of exemption under entry no. 66 of Notification No. 12/2017 - Central Tax The applicant, a private limited company, sought an advance ruling on whether the services provided in affiliation with universities for degree courses are exempt from GST under entry no. 66 of the Notification No. 12/2017 - Central Tax. The applicant's contention was that by affiliating with a university and imparting education as per the university's curriculum, they qualify as an educational institution providing services leading to qualifications recognized by law. The ruling authority analyzed the definition of "educational institution" under the notification, which includes education as part of a curriculum for obtaining a recognized qualification. Since the applicant's courses lead to qualifications recognized by law and are conducted in affiliation with universities, they are considered an educational institution eligible for the exemption. Issue 2: Determination of GST exemption for services provided by the applicant The ruling authority examined the specific services provided by the applicant in affiliation with universities for degree courses. They referenced the entry no. 66 of Notification No. 12/2017 - Central Tax, which exempts services provided by an educational institution to its students, faculty, and staff. Since the applicant's services meet the criteria of being part of a curriculum leading to recognized qualifications and are conducted in affiliation with universities, they are deemed to be exempt from Central Goods and Services Tax. The ruling also extended this exemption to Karnataka Goods and Services Tax, as a similar provision exists under the state tax regulations. In conclusion, the ruling authority determined that the services provided by the applicant in affiliation with universities for degree courses are exempt from both Central Goods and Services Tax and Karnataka Goods and Services Tax under entry no. 66 of the respective notifications, subject to the condition that the education services must be part of a curriculum leading to recognized qualifications.
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