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TMI Blog2019 (4) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... ons 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 rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to declare certain institutes of management to be institutions of national importance with a view to empower them to attain global standards of excellence in management, management research and allied areas of knowledge. 2. In the light of the enactment of the IIM Act, 2017, IIMB applied for an advance ruling before the Authority for Advance Ruling on 09.05.2018 on the following questions: a) Whether the 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 as amended by Notification No 02/2018 dated 29 January 2018, are exempted from GST output liability, being education as a part of a curriculum for obtaining qualification recognized by any law for the time being in force, in the light of the enactment of the IIM Act, 2017? b) Whether supply of online educational journals or periodicals to the IIMB is exempted from reverse charge liability of GST under SI.NO 66 of Notification No 12/2017 CT(Rate) dated 28th June 2017 as amended by Notification No 02/2018 dated 25th Jan 2018, being education as a part Of a curriculum for obtaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to train individual who will excel in their area of research through publication of high-quality work of international standard. 5 years 2 Post Graduate Program in Management (PGP) is designed to equip the student with skill and capabilities that will enable them to reach responsible global position in management. The PGP revolves around the principle that world class business leaders are not mass produced; they are nurtured and developed in a practical application oriented, user friendly environment. This is a flagship MBA degree equivalent program where students are admitted through CAT. 2 years 3 Post Graduate Program in Public Policy and Management (PGPPM) catalyzed by the Government of India and United Nations Development Program, the PGPPM is packed with path breaking insights about winning policy and making management strategies. 1 years 4 Post Graduate Program in Enterprise Management (PGPEM) is a weekend management program, designed for middle and senior level working professionals. Participants learn from wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the IIM Act w.e.f. 31.01.2018, the Applicant should be considered as an educational institution ? The AAR, West Bengal held that the Applicant is an educational institution within the meaning of sub-clause (ii) of clause 2(y) of the exemption notification No 12/2017 CT(R) dated 28.062017 in terms of the IIM Act and the Applicant is eligible for benefit of exemption under Entry No 66(a) of the said Notification. 4.5. Placing reliance on the above Advance Ruling, the appellant states that they qualify as an educational institution as defined under clause 2(y) of the Notification No 12/2017 CT (R) and are eligible for exemption under entry No. 66(a) of the Said exemption notification since IIMB is also recognized by the IIM Act and Offers the same courses; that the CGST Act and the relevant Notification has not taken into consideration the enactment of the IIM Act, 2017; that based on the existing Notification No 12/2017 CT (R), exemption in Sl.No 67 will be applied for the courses mentioned in Sl.No. 1 2 of the above Table and exemption in Sl.No. 66 will be applied for the courses mentioned in Sl.Nos 3, 4 and 5 of the above Table. They further submitted that since IIMB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urement of the online journals are eligible for the exemption under Sl.No. 10 of the Notification No 09/2017 (IT) dated 28.06.2017. DISCUSSIONS FINDINGS: 6. We have gone through the records of the case and taken into consideration the submissions made by the Appellant in their grounds of appeal and at the time of the personal hearing. 7. The two issues for determination before us are: a) Whether the long duration post graduate diploma/degree granting programs offered by the IIMB, other than those programs specifically mentioned in SI.No. 67 of Notification No 12/2017 CT(Rate) dated 28th June 2017, are exempted from GST in the light of the enactment of the IIM Act, 2017? b) Whether supply of online educational journals or periodicals to the IIMB is exempted from reverse charge liability of GST under SINO 66 of Notification No 12/2017 CT(Rate) dated 28th June 2017 in the light of the enactment of the IIM Act, 2017? 8. Since both the issues revolve around the entries at SINO 66 and 67 of Notification No 12/2017 CT(R) dt 28.06.2017, we reproduce the relevant text of the said notification. Table 2 Sl.No. Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try Sl.No 66 with effect from 25.01.2018 reads as under: Table 3 Sl.No. Chapter, Section, Heading Group or Service Code (Tariff) Description of Services Rate (per cent) Condition 66 Heading 9992 Services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; (b) to an educational institution, by way of,- (i) transportation of students, faculty and Staff; (it) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; (v) supply of online educational journals or periodicals: Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b) shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear Post Graduate program in Management offering the Post Graduate Diploma in Management is the flagship program across all IIMs. This two-year post Graduate program in Management is equivalent to an MBA degree. The Fellow Program in Management is equivalent to a Ph.D. degree. Many IIMs offer Executive Education Certificate Program for working professionals. This Executive Certificate Programs are not considered as equivalent to any MBA. Only the diploma level programs are considered as equivalent to an MBA degree. Being Societies, IIMs were not authorized to award degrees (which as per Indian law can be conferred only by Universities and deemed-to-be- universities) and hence, IIMs were awarding diplomas and fellowships in management. These diplomas and fellowships were only equivalent to an MBA or Ph.D. and the equivalence was not universally accepted. Since the diplomas and fellowships given by IIMs were not qualifications recognized by any law in India, they were not considered as an educational institution in terms of the definition at clause 2(y) of Notification No 12/2017 CT(R), However, having due regard to the fact that certain programs of IIMs are akin to university degr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, he can claim the one which is more beneficial to him. Therefore, during the period 31 st January 2018 to 31 st 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. This has also been clarified by the CBIC vide Circular No 82/01/2019 GST dated 01.01.2019. The relevant para of the Circular is reproduced hereunder: 5. For the period from 31st January, 2018 to 31st December, 2018, two exemptions, i.e. under Sl. No. 66 and under SI. Nov 67 of notification No.12/2017- Central Tax (Rate), dated 28.06.2017 are available to the IIMs. The legal position in such situation has been clarified by Hon ble Supreme Court in many cases that if there are two or more exemption notifications available to an assessee, the assessee can claim the one that is more beneficial to him. Therefore, from 31st January, 2018 to 31st December, 2018, IIMs can avail exemption either under SI. No 66 or SI. No. 67 of the said notification for the eligible programmes. In this regard following case laws may be referred- I. H.C.L Limited vs Collector of Customs [2001 (130) ELT 405 (SC)] = 2001 (3) TMI 971 - SU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- Table Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 1 2 3 4 5 10 Chapter 99 Services received from a provider of service located in a non- taxable territory by - (a) -------------; (b) --------------; or (ba) way of supply of online educational journals or periodicals to an educational institution other than an institution providing services by way of- (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course; Nil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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