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2019 (9) TMI 984 - AAR - GSTExemption from GST - consideration received by the school from the participant school(s) for participation of their students and staff in the conference - entry No. 66 or entry No. 1 or entry No. 80 or any other entry of the Notification No. 12/2017 - Central Tax (Rate) - appropriate category of the service - appropriate Tax Rate - Place of supply of services - exemption provided to service providers of catering, security, cleaning, house-keeping, transportation etc. to an educational institution upto higher secondary be available to the Service Providers of the Applicant for services related to such conference - ITC on input services. Will the consideration received by the school from the participant school(s) for participation of their students and staff in the conference would be exempted under Entry No. 66 or Entry No. 1 or Entry No. 80 of the Notification No. 12/2017-Central Tax (Rate)? - HELD THAT - It is clear that Supply of all services to an Educational Institution are not exempt. Only the specified services are exempt. For example, even the entrance examinations conducted by an Educational Institution will not be exempt, if there is no specific clause for its exemption - Similarly, supply of services pertaining to transportation of students, faculty and staff is exempt only because of eligibility of an Educational Institution for exemption for educational services for pre-school education and education up to higher secondary school or equivalent - supply of such services to an Educational Institution for any other purpose, say for education beyond higher secondary level, shall not be exempt. If not exempted then what would be the appropriate category of the service and the appropriate Tax Rate? - HELD THAT - The authority is of opinion that various services provided for organizing an educational conference / gathering of students and staff of other Schools, shall be liable to tax at the rate applicable to the respective services. For example, the catering services shall be liable to tax @ 5% (2.5% 2.5%) without eligibility for Input tax credit. Similarly, the services of security or cleaning or house-keeping services shall be liable to tax @ 18%. What would be the Place of Supply for such services? - HELD THAT - According to the provisions of the Act to decide the Place of supply is beyond the jurisdiction of AAR. Whether exemption provided to service providers of catering, security, cleaning, housekeeping, transportation etc. to an educational institution up to higher secondary be available to the Service Providers of the Applicant for services related to such conference? - HELD THAT - Authority is of the opinion that Exemption provided to service providers of catering, security, cleaning, house-keeping, transportation etc. to an educational institution up to higher secondary shall not be available for services provided for such conference. Whether ITC would be eligible of all the input services availed for the purpose of the above conference? - HELD THAT - On this question the provision of the act very clear that no ITC shall be available on food and catering, as rate is 5% without ITC. ITC in respect of other services shall be available as per provisions of the GST Act and the Rules.
Issues Involved:
1. Exemption of consideration received by the school for the conference under various entries of Notification No. 12/2017-Central Tax (Rate). 2. Appropriate category and tax rate if not exempted. 3. Place of supply for such services. 4. Availability of exemptions for service providers of catering, security, cleaning, housekeeping, transportation to the Applicant for the conference. 5. Eligibility of Input Tax Credit (ITC) for input services availed for the conference. Detailed Analysis: Issue 1: Exemption of Consideration Received by the School The Applicant sought clarification on whether the consideration received for the conference would be exempt under Entry No. 66, Entry No. 1, or Entry No. 80 of Notification No. 12/2017-Central Tax (Rate). The Authority clarified that: - Supply of all services to an educational institution is not exempt; only specified services are. - Entry 1 pertains to services by an entity registered under Section 12AA of the Income-tax Act by way of charitable activities, which is not applicable to the Applicant. - Entry 80 pertains to services by way of training or coaching in recreational activities relating to arts, culture, or sports by charitable entities registered under Section 12AA of the Income-tax Act, which is also not applicable to the Applicant. - Entry 66 pertains to services provided by an educational institution to its students, faculty, and staff. However, the activities of holding an educational conference for students and staff of other schools do not fall under this category. Issue 2: Appropriate Category and Tax Rate The Authority opined that various services provided for organizing the conference would be liable to tax at the rate applicable to the respective services. For example, catering services would be taxed at 5% without eligibility for ITC, and security or cleaning services would be taxed at 18%. Issue 3: Place of Supply The Authority stated that determining the place of supply is beyond the jurisdiction of the Advance Ruling Authority (AAR). Issue 4: Availability of Exemptions for Service Providers The Authority concluded that exemptions provided to service providers of catering, security, cleaning, housekeeping, transportation, etc., to an educational institution up to higher secondary would not be available for services provided for the conference. Issue 5: Eligibility of Input Tax Credit (ITC) The Authority clarified that no ITC would be available on food and catering services as the tax rate is 5% without ITC. ITC for other services would be available as per the provisions of the GST Act and the Rules. Ruling: 1. The consideration received by the school for the conference is not exempt under Entry No. 66, Entry No. 1, Entry No. 80, or any other entry of Notification No. 12/2017-Central Tax (Rate) and is chargeable to GST. 2. Various services provided for organizing the conference will be taxed at the rate applicable to the respective services. 3. Determining the place of supply is beyond the jurisdiction of AAR. 4. Exemptions for service providers to an educational institution up to higher secondary are not available for services provided for the conference. 5. ITC is not available for food and catering services; ITC for other services is available as per GST provisions. This ruling is valid subject to the provisions under section 103(2) until declared void under Section 104(1) of the GST Act.
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