2020 (4) TMI 597 - AAR - GST

Requirement of registration - examination to get admission for study at Rashtriya Military College, Dehradun etc. held by the State Examination Board - activities of conducting various types of examinations - N/N. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended - HELD THAT - Notification no. 12/2017-Central Tax (Rate) dated 28.06.17 (Sr.No.1), as amended, clearly provides exemption to Services by an entity registered under section 12AA of the Income-tax Act, 1961(43 of 1961) by way of charitable activities. However, the applicant do not fall in the category of Charitable activities - The benefit of exemption is not available to the State Examination Board under entry no. 66 (b)(iv) to the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 read with Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 as the exams conducted by the applicant are planned and conducted by the State Examination Board on its own accord and its not the services provided to an educational institute - State Examination Board is liable for registration as it does not falls under Section 23(a) of Central Goods and Services Tax Act, 2017 - State Examination Board is liable for registration as provided under Section 22 of Central Goods and Services Tax Act, 2017. Whether the applicant is required to be registered under the Act. - HELD THAT - Yes, the applicant is required to be registered under the Act. Whether any tax liability arises from the work done by it? - HELD THAT - Yes, the amount will be taxable.

Summary

Issues:
1. Determination of the liability to pay tax on any goods or services or both.
2. Whether the applicant is required to be registered.

Analysis:

Issue 1: Determination of the liability to pay tax on any goods or services or both
The applicant, State Examination Board, conducts various examinations for different purposes, including teacher recruitment, promotions, scholarships, and admissions. They argued that as an entity registered under section 12AA of the Income Tax Act, their activities should be exempt from GST under Notification No. 09/2017 Integrated Tax (Rate). Additionally, they claimed that their services to educational institutions for conducting exams fall under entry 66 of Notification No. 12/2017 Central Tax (Rate). The Central Goods & Services Tax Commissionerate supported the applicant's claim, subject to possessing the necessary certificates. However, the Authority observed that the applicant's activities did not qualify as charitable activities under the relevant notifications. Consequently, the Board was not eligible for the claimed exemptions.

Issue 2: Requirement for registration
The Authority ruled that the State Examination Board is liable for registration under the Central Goods and Services Tax Act, 2017. Despite the applicant's arguments for exemptions based on their registration status and services to educational institutions, the Board's activities did not align with the criteria specified in the notifications. Therefore, the Board was deemed liable for registration and tax obligations under the Act.

In conclusion, the Authority for Advance Ruling in Gujarat determined that the State Examination Board was not exempt from GST on its examination-related services and was required to register under the Central Goods and Services Tax Act, 2017. The ruling clarified the tax liability and registration requirements for the Board based on the specific provisions of the relevant notifications and legal framework.