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TMI Blog2021 (3) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... nation Board, it is seen that the state emblem of India (the adaptation of the Lion Capital of Ashoka) as well as the Swachh Bharat emblem which indicates that the applicant is a Government of Gujarat enterprise or a Government of Gujarat body - Thus, it appears that the State Examination Board is a Board which is fully controlled by the Government of Gujarat through the Members of the said Board who are all appointed by the Government of Gujarat and are all State Government employees and therefore, the said Board appears to be a Government body wholly owned by the State Government of Gujarat. There is an entry at Sr.No.17 of the list of functions entrusted to a Panchayat vide Article 243G of the Constitution which reads as Education, including primary and secondary schools. It is also found that the applicant themselves have referred to the said entry in their submission stating that the services provided by them are in relation of discharge of functions covered under the aforementioned Entry at Sr.No.17 only - As per the definition, Education is the act or process of imparting knowledge, especially at a school, college or university. On comparing the functions of the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Sr.No.66(a) and 66(aa) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 as amended from time to time. - GUJ/GAAR/R/105/2020 - - - Dated:- 5-11-2020 - SANJAY SAXENA AND MOHIT AGRAWAL, MEMBER Present for the applicant : Shri Devam Sheth C.A BRIEF FACTS The applicant M/s. State Examination Board is located Opposite State Government Library, Sector-21, Gandhinagar-382021. The applicant has stated that on formation of Gujarat State on 01.05.1960, a department named Education and labour department came into existence and social welfare, labour, prohibition, excise and employment were included in Education Department and later subjects were gradually taken away from the Education and Labour Department on administrative grounds; that since August, 1976, Education Department came into existence as separate secretariat department, which looks after education including primary education, continuous education, literacy education, secondary education, higher education, technical education, pharmacy education. 2. The applicant has submitted that the Policy Structure of Education Department is as under: (i) Continuous education and literacy are importan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef Secretary, Government of Gujarat, Block-1, Gandhinagar. Govt.service. 02. Addl. Chief Secretary, Education Department, Govt. Of Gujarat. Addl. Chief Secretary, Education Department, Block-5, 7th Floor, Sachivalaya, Gandhinagar. Govt.service. 03. Commissioner of School. Commissioner of schools, Block-12, 2nd Floor, Dr.Jivraj Mehta Bhavan, Gandhinagar. Govt.service. 04. Additional Secretary, Education Department, Government of Gujarat. Addl. Secretary, Education Department, Block-5, 7th Floor, Sachivalaya, Gandhinagar. Govt.service. 05. Deputy Secretary Deputy Secretary, Education Department, Block-5, 7th Floor, Sachivalaya, Gandhinagar. Govt.service. 06. Chairman S.E.B. Chairman, State Examination Board, Opposite Government Library, Sector-21,Gandhinagar. Govt.service. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... teacher to appoint in BAL MANDIR (Pre Primary School). 02. Diploma in Elementary Education (D.El.Ed.)-2 years course (Old name PTC) Std.12th passed Course for the teacher to appoint in Primary school(Std.1 to Std.8) 03. Art Teacher Diploma(ATD)-2 years course. Std.12th passed who have Drawing subject in SSC and HSC. Course for the drawing teacher to appoint in Primary and Secondary Schools. 04. Applied Arts 5 years course Std.12th passed (who have Drawing subject in SSC and HSC) or ATD. Course for the drawing lecturers to appoint in ATD colleges or Art colleges or Institutes. 05. Drawing and Painting 5 years course Std.12th passed (who have Drawing subject in SSC and HSC) or ATD. Course for the drawing lecturers to appoint in ATD colleges or Art colleges or Institutes. 06. Sculpture 5 years course Std.12th passed (who have Dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Forest guard examination for forest department. 2.Clerk for PGVCL. 3. Jail Sipahi for Home Department. 4. Stenographer for GIDC. 5. Environment officer and Scientific officer for GPCB. 6. CRC, BRC and URC for Education department. 7. School Inspector for Education Department. 17. Teacher Eligibility Test-1 (TET-1) 12th Higher Secondary(HSC) + D.El.Ed. Eligibility test to appoint for the Job of Teacher in Primary school (Std.1 to Std.5). 18. Teacher Eligibility Test-1 (TET-2) Graduate + B.Ed/ D.El.Ed. Eligibility test to appoint for the Job of Teacher in Upper Primary school (Std.6 to Std.8). 19. Head Teacher Aptitude Test (HTAT) Graduate + B.Ed/ D.El.Ed + 5 years experience of teaching. Eligibility test to appoint for the Job of Teacher in Primary and Upper Primary school. 20. Teacher Aptitude Test (TAT(Sec.)) Graduate + B.Ed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Relevant portion of NotificationNo.12/2017-State Tax(Rate) dated 30.06.2017 reads as under: No.(GHN-41)GST-2017/S.11(1)(7)-TH:- In exercise of the powers conferred by sub-section (1) of section 11 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the State tax leviable thereon under sub-section (1) of section 9 of the 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:- Sl.No. Chapter Description of Service Rate Condition 5. Chapter 99 Services by a Governmental Authority by way of any activity in relation to any func ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, therefore, State Government means the Governor or the officers subordinate to him who exercise the executive power of the State vested in the Governor and in the name of the Governor. 10. The applicant has submitted that the President/Chairman of the Governing Body of State Examination Board is established by the State Government i.e. by the Education Department of Government of Gujarat and it is fully controlled by Members of State Examination Board who are appointed through the offices of Government of Gujarat including President of the Governing Board i.e. Education Minister of State of Gujarat; that thereafter, they would refer to the last and third dimension to the exemption entry talks about any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India which is enlisted below: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Mino ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mely:- Sl.No. Chapter Description of Service Rate Condition 66. Chapter 99 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; ; NIL NIL Relevant portion of NotificationNo.12/2017-State Tax(Rate) dated 30.06.2017 reads as under: No.(GHN-41)GST-2017/S.11(1)(7)-TH:- In exercise of the powers conferred by sub-section (1) of section 11 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the State tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students. 16. The applicant has submitted that it can be understood from the above that State Examination Board is a State Educational Board and will be treated as Educational Institution as far as this exemption notification is concerned; that third dimension of the exemption entry talks about services being provided to the students and it should be noted that the persons apply for the examination are the students either cleared Std.4th, Std.6th, Std.8th, Std 9th, Std.10th, Std.12th etc. or Graduates or having age 11 years to 13 years; that looking to all the dimensions, it can be said that the applicant is eligible to claim exemption benefit under Entry No.66(a)(aa) of Notification No.12/2017-Central Tax(Rate). The applicant has also stated that they have already received an Order from Authority of Advance Ruling vide No.GUJ/GAAR/R/16/2019 dated 28.08.2019 with respect to previous application for advance ruling and that this is a fresh application for advance rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t examination, graduate level and post graduate level examinations and awarding different professional Diploma and Certificates for General knowledge, knowledge of different subjects like Sports, Drawing, Architecture of the students studying in the various schools and high schools and that the main functionality to conduct examination for different aspects such as: (1) Jobs (TET, HTAT, TAT(S), TAT(HS), HMAT). (2) Scholarships (Primary, Secondary, National Talent Search). (3) Services (Department Exam and Panchayat Class III) and (4) Certificates (Drawing, Diploma in Home Science etc.). The type of examinations held by the applicant, the eligibility criteria for appearing in these exams and the benefits of clearing the exams is detailed in para-5 above. The applicant has asked the following question seeking Advance Ruling on the same: Whether the applicant is eligible to claim exemption benefit under Sr.No.5 and Sr.No.66 (a) (aa) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017? 21. On going through the submissions of the applicant as well as the questions raised by them seeking Advance ruling on the same, we find that the main issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing services not classified elsewhere. 601. 999295 Services involving conduct of examination for admission to educational institutions. 602. 999299 Other educational support services. 22. Next, we need to refer to Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. As per the said notification, exemption is granted to the intra-State supply of services described in column (3) of the Table of the notification from payment of GST subject to the conditions specified in the corresponding entry in column (5) of the said Table. Sr. No. 5 of the said notification reads, as under: Sl.No. Chapter Description of Service Rate Condition 5. Chapter 99 Services by a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution. NIL NIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at State Examination Board will be an autonomous independent body under State Department of Education for conducting various examinations. The applicant has also submitted a copy of resolution dated 26.10.1999 passed by the Government of Gujarat (in Gujarati) wherein it has been mentioned that the State Government of Gujarat has declared State Examination Board as an autonomous body wherein it has been stated that henceforth, the State Government Budget will provide only for the salary of the employees of the said Board and would provide for the administrative expenses of the Board for one year only, after which the Board will have to make it s own arrangements vis-a-vis administrative expenses through exam fees etc. Besides, on the homepage of the website of State Examination Board, we can see the state emblem of India (the adaptation of the Lion Capital of Ashoka) as well as the Swachh Bharat emblem which indicates that the applicant is a Government of Gujarat enterprise or a Government of Gujarat body. Looking to all the facts mentioned above, it appears that the State Examination Board is a Board which is fully controlled by the Government of Gujarat through the Members of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14.Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 25. On going through the aforementioned lists, we find that there is an entry at Sr.No.17 of the list of functions entrusted to a Panchayat vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducted by them, wherein the successful candidates would be eligible for appointment as teachers in primary, secondary or higher secondary schools. Further, departmental exams are also being held by the applicant for the working Government employees, which are for their confirmation or for their promotion. Hence, these exams, being qualifying exams or exams, which results in the employment of the successful candidates, cannot, by any stretch of imagination be covered under the Entry Education, including primary and secondary schools . However, the 7 exams conducted by the applicant (listed at Sr.Nos.9 to 15 of the list of exams as at para-5 above) and as detailed below, can be said to be pertaining to education including primary and secondary schools . They are listed as follows: (i) Elementary Drawing Grade Exam (for Std.4th pass students) for Certificates for drawing skill. (ii) Intermediate Drawing Grade Exam (for 8th pass students) for Certificates for drawing skill. (iii) Primary Scholarship Exam (for students pursuing std. 6th) which pertains to scholarship of ₹ 750/- per year for standards 6th to 8 th (iv) Secondary Scholarship Exam (for students ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services supplied by the applicant in respect of these exams are eligible for the benefit of exemption available at Sr.No.5 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017. 28. Now, the next issue to be decided is as to whether the applicant is eligible for exemption as available under Sr.No.66(a) and (aa) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 as amended. On going through the aforementioned entry of the said notification, it is seen that the said notification has been amended vide notifications No.02/2018-Central Tax(Rate) dated 25.01.2018. After this amendment, Entry No.66 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 reads as under: Sl.No. Chapter Description of Service Rate 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... para-5 above. Most of the exams pertain to employment for the successful candidates i.e. the clearing of these examinations would either make the successful candidates eligible for the posts of the jobs of teachers or lecturers in various government or private schools/colleges or result in them getting employed in various posts of teachers, lecturers, stenos, clerks for PGVCL, forest guards, Jail Sipahi for Home Department, Stenographers for GIDC, CRC/BRC/URC for Education Department, School Inspector for Education Department, Environment Officer and Scientific Officer for GPCB etc. The applicant is also conducting exams such as Teachers Eligibility Tests, wherein the successful candidates would be eligible for appointment as teachers in primary, secondary or higher secondary schools. Further, Teachers Aptitude Tests are also being conducted by them, wherein the successful candidates would be eligible for appointment as teachers in primary, secondary or higher secondary schools. Further, departmental exams are also being held by the applicant for the working Government employees, which are for their confirmation or for promotion. Besides these, the applicant is also conducting vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the aforementioned Sr.No.66(a) and (aa), the primary criteria of being an Educational Institution as defined in para-2(y) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 has to be fulfilled/satisfied, failing which, the applicant will not be considered eligible for availing the benefit of the said exemption. Since, as discussed earlier, the applicant does not get covered under the definition of Educational Institution thus rendering themselves ineligible for the benefit of the aforementioned exemption, we conclude that the applicant is not eligible for the benefit of exemption of GST available under Sr.No.66(a) and 66(aa) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 as amended from time to time. 32. In the light of the aforesaid circumstances, we rule as under: R U L I N G Question : Whether the applicant is eligible to claim exemption benefit under Sr.No.5 and Sr. No. 66(a) (aa) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017? Answer: (i) The applicant is eligible to claim exemption benefit under Sr.No.5 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017(as amended from time to time), in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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