9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 1182 - AAAR - GSTExemption from GST - educational institutions or not - pre and post Examination services being provided to the Educational Boards and Universities (including Open Universities) - services provided on sub-contract basis - Sl.No. 66(b) of the Notification No. 12/2017-Central Tax (Rate), dt. 28-06-2017 - HELD THAT - The applicant sought ruling about whether the exemption is available to them in case of the services provided on sub contract basis i.e. the applicant provides pre and post examination services to the main contractor who in turn provides the said services to the Educational Boards and Universities (including Open Universities). However, since in the present case the main contractor to whom the applicant is to provide services as sub-contractor is not an educational institution, though the services are allegedly being provided to the Educational Boards and Universities by the main contractor, the exemption contained in the impugned notification is not available to the applicant. When exemption contained in a notification is to be claimed, an applicant is to satisfy the conditions prescribed therein. The wordings of any notification have to be strictly read to allow or deny any exemption. The applicant, M/s Magnetic Infotech Private Ltd., as a sub contractor, is not eligible to claim exemption as available under Notification No. 12/2017-(R), dt. 28.6.2017.
Issues Involved:
1. Applicability of GST exemption to the applicant for pre and post-examination services provided to Educational Boards and Universities. 2. Availability of GST exemption for services provided on a sub-contract basis to the main contractor who then provides these services to Educational Boards and Universities. Issue-wise Detailed Analysis: 1. Applicability of GST exemption to the applicant for pre and post-examination services provided to Educational Boards and Universities: The applicant, engaged in providing pre and post-examination services to various educational institutions, sought an advance ruling to determine if these services are exempt from GST. The services include data processing for examinations, result preparation, and generation of statistical data and reports. According to the Telangana State Authority for Advance Ruling, the service relating to the conduct of examinations is exempt from GST as per Sl.No. 66(b) of Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017. Both members of the lower authority agreed that these services, when provided directly to educational institutions, are exempt from GST. 2. Availability of GST exemption for services provided on a sub-contract basis to the main contractor who then provides these services to Educational Boards and Universities: The second issue raised was whether the GST exemption applies when the applicant provides these services on a sub-contract basis to a main contractor, who in turn provides the services to educational institutions. The lower authority members had divergent views on this matter: - One member opined that since the service itself is exempt, this exemption can be claimed by any taxable person, including a sub-contractor. - The other member argued that the exemption is only applicable when services are provided directly to an educational institution. Since the main contractor does not qualify as an educational institution, the exemption does not extend to sub-contractors. Given the lack of consensus, the issue was referred to the Appellate Authority for Advance Ruling (AAAR) for a decision. Appellate Authority's Decision: The AAAR examined the relevant provisions and the notification. It noted that the exemption is available when services are provided "to" an educational institution for services relating to admission or conduct of examination by such institution. The AAAR concluded that since the main contractor is not an educational institution, the sub-contractor (applicant) cannot claim the exemption, even if the services ultimately benefit an educational institution. The wording of the notification must be strictly interpreted, and the exemption cannot be extended to sub-contractors. Order: The AAAR ruled that the applicant, M/s Magnetic Infotech Private Ltd., as a sub-contractor, is not eligible to claim the GST exemption available under Notification No. 12/2017-(R), dated 28.6.2017. The appeal was disposed of accordingly.
|
