2022 (8) TMI 45 - AAR - GST

Scope of Advance Ruling application - Levy of GST - services provided by the supplier to the Board of Secondary Education in relation to conduction of examination - Services of providing printing of Answer sheets, Question papers, OMR sheets, Graphs, Certificates, Mark sheets etc. - Services provided by way of online examination form filling - Service provided by way of annual maintenance to the computers exclusively used for examination purposes - Service of operator provided by supplier for operating computer system - Services provided by way of processing of result through marks allotted in examination - exemption as per N/N.12/2017-CT(Rate) read with explanation in paragraph 3 clause (iv), and read with Circular No. 151/07/2021-GST dated 17 th June, 2021 or not? HELD THAT - The applicant is the recipient of various services namely Services of providing printing of Answer Sheets', Question papers, OMR sheets, Graphs, Certificates, Mark-sheets etc., Services provided by way of online examination form filling, Services provided by way of annual maintenance to the computers exclusively used for examination purposes, Services of operator provided by suppliers for operating computer system, Services provided by way of processing of result through marks allotted in examination from various suppliers in relation to conduction of examination. As per Section 95 of CGST Act, 2017; this authority shall decide on matters or on questions specified in sub-section (2) of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken, by the applicant and Authority means the Authority for Advance Ruling, constituted under Section 96. Thus Section 95 allows this authority only to decide on matters or on questions in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant i.e. in the subject case this application can be entertained only if the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant itself In this case, the supplies of Services are being undertaken or proposed to be undertaken not by the applicant but by the various supplier(s) to the applicant. These suppliers are distinct persons as per the provisions of the GST Act. This authority is constituted to decide on matters or questions specified in sub-section (2) of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant - the applicant is not a supplier in the present case, the applicant as per the contracts is a receiver of services supplied by the various suppliers. This authority can only pass rulings on supplies being undertaken or proposed to be undertaken by the supplier-applicant only. Therefore, this authority cannot entertain the subject application as the applicant is not a supplier of goods or services or both, rather is a recipient of services in the present case. The subject application for advance ruling made by the applicant is not maintainable and hereby rejected under the provisions of the GST Act, 2017.

Summary

Issues Involved:
1. Applicability of a notification issued under the provisions of the GST Act.
2. Determination of the liability to pay tax on services provided to the Board of Secondary Education in relation to the conduction of examinations.

Issue-Wise Detailed Analysis:

1. Applicability of Notification No. 12/2017-CT(Rate) and its Amendments:

The applicant, Board of Secondary Education, Rajasthan (RBSE), sought clarity on whether services provided to it in relation to the conduction of examinations are exempt under Notification No. 12/2017-CT(Rate) as amended by subsequent notifications. The services in question include printing of examination materials, online form filling, annual maintenance of computers used for examinations, operator services for computer systems, and result processing services.

The applicant argued that as per Notification No. 12/2017-CT(Rate) and its amendments, particularly Notification No. 2/2018-Central Tax (Rate) and Notification No. 14/2018-Central Tax (Rate), services provided to educational institutions for the conduct of examinations are exempt from GST. The applicant emphasized that RBSE qualifies as an educational institution for the limited purpose of conducting examinations, as clarified in these notifications and Circular No. 151/07/2021-GST.

2. Determination of GST Liability on Specific Services:

The applicant listed specific services and sought a ruling on their GST exemption status:
- Printing of Answer Sheets, Question Papers, OMR Sheets, Graphs, Certificates, Mark Sheets.
- Online Examination Form Filling.
- Annual Maintenance of Computers used exclusively for examinations.
- Operator Services for Operating Computer Systems.
- Processing of Examination Results.

Comments from Jurisdictional Officer:

The Joint Commissioner, State Tax, Ajmer, commented that:
- Services related to printing examination materials and online form filling appear exempt under S. No. 66(b)(iv) of Notification No. 12/2017-CT(R).
- Services related to annual maintenance of computers and operator services do not appear exempt.
- Services related to processing examination results appear exempt under the same notification.

Findings, Analysis, and Conclusion:

The Authority for Advance Ruling (AAR) examined the submissions and the provisions of the GST Act. It noted that:
- The applicant is the recipient, not the supplier, of the services in question.
- As per Section 95 of the CGST Act, the AAR is authorized to rule on matters related to the supply of goods or services by the applicant.
- The application can only be entertained if the supply is undertaken or proposed to be undertaken by the applicant itself.

Given that the applicant is a recipient of services and not the supplier, the AAR concluded that it does not have the jurisdiction to rule on the matter. The authority emphasized that it can only pass rulings on supplies being undertaken by the applicant-supplier.

Ruling:

The AAR ruled that the application for advance ruling by the applicant is not maintainable and is hereby rejected under the provisions of the GST Act, 2017. The authority did not delve into the merits of the case due to the applicant's status as a recipient rather than a supplier of services.