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2019 (4) TMI 382 - AAAR - GSTExemption from GST - educational institute or not - long duration post graduate diploma/degree granting programs offered by the IIMB, other than those specifically mentioned in Sl.No 67 of Notification No 12/2017 CT(Rate) dated 28th June 2017 - supply of online educational journals or periodicals to the IIMB - Held that - All IIMs (which includes IIMB) became eligible for exemption as an educational institution with effect from 31st January 2018 under entry Sl.No. 66 of Notification No.12/2017 CT(R). However, post 31st January 2018, the exemption under Sl.No. 67 loses its relevance since the IIMs are now covered under the entry Sl.No 66. However, the entry Sl.No.67 was deleted only with effect from 01.01.2019 vide Notification No. 28/2018 CT (R) dated 31.12.2018. Therefore, during the period January 2018 to 31st December 2018 both the entries at Sl. No. 66 and 67 were in force granting exemption to the services provided by IIMs. It is trite law that if there are two or more exemptions available to an assessee, he can claim the one which is more beneficial to him - during the period 31st January 2018 to 31st December 2018, IIMB can avail the exemption under either Sl.No. 66 or Sl.No. 67 of Notification No 12/2017 CT(R) dated 28.06.2017 as amended. With effect from 31st January 2018, the long duration Post graduate diploma/degree programs offered by IIMB, where a degree/ diploma is conferred as recommended by the Board of Governors as per the power vested on them under the IIM Act, 2017, will be eligible for exemption from GST by virtue of Sl.No 66 of the Notification No 12/2017 CT(R) dated 28.06.2017 as amended. Supply of online educational journals or periodicals to the IIM - plea of the Appellant is that since they are to be considered as an educational institution post enactment of the IIM Act, 2017, the supply of online journals and periodicals to their institution should be given the benefit of exemption under Sl.No 10 of Notification No. 09/2017 IT(R) - Held that - IIMB is an educational institution as defined in clause 2(y) of the Notification No 12/2017 CT (R) dated 28.06.2017 and it is an educational institution which offers qualification recognized by law. Therefore, the receipt of online journals and periodicals by IIMB from a person located in a non-taxable territory will be eligible for exemption from payment of IGST in terms of Sl.No 10 of Notification No 09/2017 IT (R) dated 28.06.2017 as amended - In the case of online journals and periodicals received by IIMB from domestic service providers, the exemption from payment of GST will be available to the domestic suppliers on intra-state supplies by Virtue of Sl.No. 66 (b) (v) of Notification No. 12/2017 CT (R) dated 28.06.2017, and exemption on inter-state supplies will be available Vide Sl.No. 69 of Notification No 09/2017-IT (R) dated 28.06,2017 as amended vide Notification No 02/2018 IT (R) dated 25.01.2018.
Issues Involved:
1. GST exemption on long-duration post-graduate diploma/degree programs offered by IIMB. 2. GST exemption on the supply of online educational journals or periodicals to IIMB under reverse charge. Issue-wise Detailed Analysis: 1. GST Exemption on Long-Duration Post-Graduate Diploma/Degree Programs: The primary issue was whether the long-duration post-graduate diploma/degree programs offered by IIMB are exempt from GST in light of the enactment of the IIM Act, 2017. The IIM Act, 2017, which came into force on 31st January 2018, declared IIMs as institutions of national importance and empowered them to grant degrees. The appellant argued that post the enactment of the IIM Act, 2017, IIMB qualifies as an "educational institution" under clause 2(y) of Notification No 12/2017 CT(R) dated 28.06.2017, thereby making all its courses eligible for GST exemption under Sl.No. 66 of the said Notification. The Authority for Advance Ruling (AAR) initially held that IIMs were not considered "educational institutions" as defined in clause 2(y) of Notification No 12/2017 CT(R) and were only eligible for exemption under a specific entry at Sl.No. 67 for certain programs. However, post the enactment of the IIM Act, 2017, IIMs were recognized as educational institutions capable of awarding degrees recognized by law. Consequently, from 31st January 2018, IIMs, including IIMB, became eligible for exemption under Sl.No. 66 of Notification No 12/2017 CT(R). The ruling clarified that during the period from 31st January 2018 to 31st December 2018, IIMB could avail exemption under either Sl.No. 66 or Sl.No. 67 of Notification No 12/2017 CT(R) as both entries were in force. This was supported by the CBIC Circular No 82/01/2019 GST dated 01.01.2019, which stated that if multiple exemptions are available, the assessee can claim the one more beneficial to them. 2. GST Exemption on Supply of Online Educational Journals or Periodicals: The second issue was 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 CT(R) dated 28th June 2017. The appellant contended that since IIMB qualifies as an "educational institution" post the enactment of the IIM Act, 2017, it should be eligible for exemption under Sl.No. 10 of Notification No 09/2017 IT(R) dated 28.06.2017, which exempts services received from a provider located in a non-taxable territory by way of supply of online educational journals or periodicals to an educational institution. The ruling confirmed that IIMB, being an educational institution as defined under clause 2(y) of Notification No 12/2017 CT(R), is eligible for exemption from payment of IGST on the receipt of online journals and periodicals from a supplier located in a non-taxable territory under Sl.No. 10 of Notification No 09/2017 IT(R). Additionally, for domestic supplies, the exemption from payment of GST is available to domestic suppliers on intra-state supplies under Sl.No. 66(b)(v) of Notification No. 12/2017 CT(R) and on inter-state supplies under Sl.No. 69 of Notification No 09/2017-IT(R). Conclusion: The appellate authority set aside the ruling of the Karnataka Authority for Advance Ruling and concluded that: a) From 31st January 2018, the long-duration post-graduate programs offered by IIMB are exempt from GST under Sl.No. 66 of Notification No 12/2017 CT(R). During the period from 31st January 2018 to 31st December 2018, IIMB can avail exemption under either Sl.No. 66 or Sl.No. 67 of Notification No 12/2017 CT(R). b) IIMB is eligible for exemption from payment of IGST on the supply of online journals and periodicals received from a person located in a non-taxable territory under Sl.No. 10 of Notification No 09/2017 IT(R). The appeal was disposed of on these terms.
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