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2018 (11) TMI 662 - AAR - GSTLiability of GST - education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force - long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru - reverse charge mechanism - supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru - Applicability of entry no. 66 in the presence of specific entry no. 67. Held that - The two competing entries of N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 relevant to the issue are Entry no. 66 and 67. Both these entries relate to services falling under the Heading 9992. The Heading 9992 appears at serial number 581 in the Annexure Scheme of Classification of Services attached to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. There are six Groups of various Education Services under the Heading 9992 covering all services from pre-primary education services to specialized education services. All educational services provided by an institute, which leads to a qualification/ degree, recognized by the law, for the time being in force, are exempt from payment of GST - both Serial no. 66 and 67 are related to all educational services covered under the same Heading 9992. This leads us to the inescapable conclusion that Serial Number 67 has been carved out specifically and only for the educational services provided by the Indian Institutes of Management. The Indian Institutes of Management have been segregated from all other educational institutes and the educational services provided by them are subject to different treatment in terms of exemptions. Therefore in so far as educational services provided by Indian Institutes of Management are concerned, the provisions contained in Serial no. 67 alone shall apply. Ruling - There is no exemption from GST on long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru. There is no exemption from GST on supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru.
Issues Involved:
1. Exemption of GST on long duration post graduate diploma/degree granting programs offered by IIMB. 2. Exemption of GST on the supply of online educational journals or periodicals to IIMB under reverse charge mechanism. Detailed Analysis: 1. Exemption of GST on Long Duration Post Graduate Diploma/Degree Granting Programs Offered by IIMB: The applicant, an educational institution, sought an advance ruling on whether their long duration post graduate diploma/degree granting programs, other than those specifically mentioned in Sl.No.67 of Notification No.12/2017 – Central Tax (Rate) dated 28th June 2017 as amended by Notification No.2/2018 dated 25th January 2018, are exempt from GST output liability. The applicant argued that these programs should be considered as education provided as part of a curriculum for obtaining a qualification recognized by the Indian Institute of Management Act, 2017. The ruling clarified that the long duration programs specifically mentioned under entry no. 67 of the said notification are exempt from GST. These include: - Two-year full-time Post Graduate Programs in Management for the Post Graduate Diploma in Management. - Fellow Program in Management. - Five-year integrated program in management. The applicant contended that other programs not covered under entry no. 67 should be exempt under entry no. 66, which pertains to services provided by educational institutions leading to qualifications recognized by law. However, the ruling emphasized that entry no. 67 has been specifically carved out for educational services provided by Indian Institutes of Management (IIMs). This specific treatment means that only the programs listed under entry no. 67 are exempt from GST. Therefore, the provisions of entry no. 66 do not apply to IIMs. The judgment concluded that the long duration programs not listed under entry no. 67 are not exempt from GST. 2. Exemption of GST on Supply of Online Educational Journals or Periodicals to IIMB Under Reverse Charge Mechanism: The applicant also sought a ruling on whether the supply of online educational journals or periodicals to IIMB is exempt from reverse charge liability of GST under Sl. No.66 of Notification No.12/2017 – Central Tax (Rate) dated 28th June 2017 as amended by Notification No.2/2018 dated 25th January 2018. The ruling reiterated that entry no. 66 pertains to general educational services provided by educational institutions, which include the supply of online educational journals or periodicals. However, since IIMs have a specific entry (no. 67) in the notification, the provisions of entry no. 66 do not apply to them. The judgment concluded that the supply of online educational journals or periodicals to IIMB is not exempt from GST under the reverse charge mechanism. Conclusion: The ruling provided clear answers to the questions posed by the applicant: - Question (a): The long duration post graduate diploma/degree granting programs offered by IIMB, other than those specifically mentioned in Sl.No.67 of Notification No.12/2017 – Central Tax (Rate), are not exempt from GST output liability. - Question (b): The supply of online educational journals or periodicals to IIMB is not exempt from reverse charge liability of GST under Sl. No.66 of Notification No.12/2017 – Central Tax (Rate). This ruling is valid subject to the provisions under section 103(2) until and unless declared void under section 104(1) of the GST Acts.
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