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TMI Blog2018 (9) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... . Similar notification is also present in the Karnataka Goods and Services Tax Act and hence the exemption is applicable mutatis mutandis under the Karnataka Goods and Services Tax Act also. Ruling:- The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums to its students exempt from Central Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 – Central Tax (Rate) dated 28.06.2017 subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force. The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums to its students exempt from Karnataka Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 – State Tax (Rate) dated 28.06.2017 subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force. - AAR No. KAR ADRG 20/2018 - - - Dated:- 13- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST and has issued a Notification No. 12/ 2017 Central Tax (Rate) dated 28th June 2017 to that effect. c. Entry No. 66 of the said notification exempts services provided by education institutions to its students, faculty and staff. The said notification also defines an educational institution as follows: Educational institution means an institution providing services by way of, - (i) Pre-school education and education up to higher secondary school or equivalent; (ii) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) Education as a part of an approved vocational education course. d. The applicant submits that the operational and legal framework of the Education sector in respect of higher education is as follows: Governance of educational institutions is undertaken by the State Governments State Government is empowered to set up Universities University is in essence an administrative body which regulates the education curriculum within its geographical jurisdiction University is empowered to affiliate colleges and other institutions which are thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification recognized by any law for the time being in force; (iii) Education as a part of an approved vocational education course. i. The essence of the above exemption is that the institution in question must qualify as an educational institution . Once this condition is fulfilled, the services provided by such institution to its students and faculty shall by default be eligible for the above exemption. j. The National Academy of Customs, Indirect Taxes and Narcotics has issued a write up on Educational Services from which the following is extracted: What is the meaning of education as a part of curriculum for obtaining a qualification recognized by law? It means that only such educational services are in the negative list as are related to delivery of education as a part of the curriculum that has been prescribed for obtaining a qualification prescribed by law. It is important to understand that to be in the negative list the service should be delivered as part of curriculum. Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be covered. Training given by private coaching i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under clause (iii) above. As per the contention of the applicant, he is getting the institution affiliated to a University in the State of Karnataka and is also proposing to impart education as a part of a curriculum provided by the University and the examination would be conducted by the University and qualifications which are recognized by law would be issued to the successful candidates. Hence the institution would qualify as an educational institution for the purposes of such courses only which lead to a qualification recognised by any law for the time being in force. (d) Entry No. 66 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28.06.2017 gives the applicable rate of tax on services and the same reads as under Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per ent.) Condition 66 Heading 9992 Services provided (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,- (i) transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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