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2022 (10) TMI 865 - AAR - GSTExemption from GST - education services to student's through its own online platform - transaction between applicant and individual student on a one to one basis - providing education up to Higher Secondary School - exemption under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate). HELD THAT - The first kind of educational institution defined in clause (y) of Para 2 of Notification. No. 12/2017 CT (Rate) dated 28.06.2017 is an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Education is not defined in the CGST Act but as per Apex Court decision in SOLE TRUSTEE, LOKA SHIKSHANA TRUST VERSUS COMMISSIONER OF INCOME-TAX, MYSORE 1975 (8) TMI 1 - SUPREME COURT , education is process of training and developing knowledge, skill and character of students by normal schooling. The entry exempts educational institutions from pre-school to higher secondary school or an educational institution which is equivalent to a 'school'. Admittedly, the applicant is not a formal school, but an institution providing special training / coaching to students who are enrolled in formal schools for education up to higher secondary or equivalent. Even though the activity; training and coaching undertaken by the applicant can be claimed to be education services in layman's understanding, those activities do not qualify to be classified under any of the Groups; 99921 - Pre-primary education services; 99922 - Primary education services or 99923 - Secondary education services as core educational services provided by schools up to higher secondary or equivalent - institutions providing services by way of education as a part of curriculum for obtaining a qualification recognized by any law for the time being in force and those engaged in providing education as a part of an approved vocational education course are covered by the definition of educational institution in sub-clauses (ii) and (iii) respectively of clause (y) of Para 2 of the said notification. The training provided by the applicant neither leads to grant of any qualification recognised by any law for the time being in force nor is part of an approved vocational education course. Therefore the applicant is not covered under the scope of definition of educational institution in Para 2 (y) of Notification No. 12/2017 CT (Rate) dated 28.06.2017. Accordingly, the applicant is not eligible for the exemption as per the entry at SI. No. 66 of the said notification.
Issues Involved:
1. Whether the transaction between the applicant and individual students on a one-to-one basis falls under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate). 2. Whether providing education up to Higher Secondary School falls under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate). Issue-wise Detailed Analysis: Issue 1: Transaction Between Applicant and Individual Students on a One-to-One Basis The applicant, M/s Tutor Comp Info Tech Private Limited, provides educational services via its online platform to individual students, institutions, and government entities. The services include customized study materials, diagnostic assessments, and personalized lesson plans. The applicant contends that these services should be classified under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate), which exempts services provided by an educational institution to its students, faculty, and staff. The term "educational institution" is defined under clause (y) of Para 2 of the said notification, which includes institutions providing pre-school education, education up to higher secondary school, education as part of a curriculum for obtaining a qualification recognized by law, and approved vocational education courses. The applicant argues that their services qualify as systematic instruction and training, thus meeting the definition of "education." However, upon examination, it was determined that although the applicant provides educational services, these do not qualify as core educational services provided by formal schools. The services are classified under Heading 9992 - Group - 99929 - SAC - 999293 as commercial training and coaching services, which do not fall under the scope of an "educational institution" as defined in the notification. Therefore, the transaction between the applicant and individual students on a one-to-one basis does not qualify for the exemption under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate). Issue 2: Providing Education Up to Higher Secondary School The applicant also claims that providing education up to Higher Secondary School should be exempt under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate). The notification exempts services provided by educational institutions up to higher secondary school or equivalent. The applicant is not a formal school but provides special training and coaching to students enrolled in formal schools. The training provided does not lead to any qualification recognized by law nor is it part of an approved vocational education course. Consequently, the applicant does not meet the definition of an "educational institution" under sub-clauses (i), (ii), or (iii) of clause (y) of Para 2 of the notification. As the applicant's services are classified under commercial training and coaching services, they do not qualify for the exemption provided to educational institutions under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate). Ruling: The applicant is not an educational institution as defined in clause (y) of Para 2 of Notification No.12/2017 CT (Rate) dated 28.06.2017. Therefore, the services provided by the applicant are not exempt under SI.No.66 of the said notification.
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