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TMI Blog2021 (11) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... ion by such institution . It appears from the entire scheme of the ASSET that the schools have the minimal role in it. In the terms and conditions attached with the School Summary Form (EB / ARO) 2019 submitted by the applicant, one of the conditions is that, Fees from the students should be charged as per the offer availed by your school . It therefore appears that the schools are required to collect the fees for ASSET from the students, as determined by the applicant and remit the same to the applicant. As mentioned in the School Summary Form (EB / ARO) 2019, it appears that the schools are offered 10% Discount towards Administration cost - It is therefore evident that the schools are not conducting the ASSET, rather the schools are facilitating the applicant to conduct ASSET for which the schools get some amount towards administration cost. Whether the ASSET can be said to be conducted by schools, even if it is used to evaluate the performance of students for giving internal marks by the schools? - HELD THAT:- The schools may find ASSET to be a good tool to evaluate students level of understanding of different subjects and may also find the detailed reports given by the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ". 2.1 The applicant submitted in the application for Advance Ruling that it deals in the products and solutions mainly intended to be used by primary and secondary schools for the assessment and learning. ASSET is examination tool for educational assessment of student in class 3rd-10th Standards across India and outside India. They provide the question bank of various subjects which are set by them based on the class level, board (like state or CBSE or ICSE etc.) and the methodology adopted by the school for teaching, to the Schools and it is called "ASSET" which stands for "Assessment of Scholastic Skills through Educational Testing". The applicant submitted that it is a scientifically designed, skill-based assessment Exam. Rather than testing rote learning, it uses multiple-choice question to focus on measuring how well SKILLS and CONCEPTS have been understood by the students. The basic nature of ASSET service is an examination to be conducted by Education Institution (School) but outsourced to the Educational Initiatives (EI) i.e. to the applicant. The assessment generates examination reports for students, indicative of their progress and topics that require attention and impr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct of online examination by schools and it does not have any other use than in conducting a specific examination. The applicant is, therefore not liable to pay tax on the service provided to the Educational institution. 2.4 The applicant submitted that every activity of educational institution by which it examines progress or test qualification or knowledge of student would fall under meaning of examination by the educational institution. In the instant case, applicant is providing contents to the school for conducting examinations and after examination, provides reports on performance of students. These reports are used by the schools for evaluation of the students. Thus in view of the above, service provided by the applicant is in relation to conduct of examination. 3. The GAAR, vide Advance Ruling No. GUJ/GAAR/R/27/2020 dated 02.07.2020, inter-alia observed that, the applicant is supplying "ASSET" multiple question to the Schools for the students of 3rd to 10th Standards and such schools are providing education to the students up to higher secondary standard. Therefore these schools fall under the definition of Educational Institution as defined under sub-clause (i) of clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons too apart from printing them, accordingly similar kind of service was provided by the service provider to Educational Institutions. In view of the foregoing, the GAAR has ruled as follows :- Question :…… Ans: Yes, exemption is available in view of the above discussion in respect of ASSET services provided to educational institution. 4. Aggrieved by the aforesaid ruling, the Assistant Commissioner, Central Goods and Services Tax, Division - VII, Ahmedabad - South Commissionerate (Jurisdictional Officer) (herein after referred to as the "appellant" or the "Department") has filed the present appeal. 4.1 It has been submitted in the grounds of appeal that the aforesaid Advance Ruling is based on erroneous interpretation that the appellant provides service to an educational institute by way of service related to admission or conduct of examination by, such institute, up to higher secondary. Thus Authority of Advance Ruling has erroneously granted the benefit of Exemption of GST under Sr. No. - 66(b)(iv) of the Notification No. - 12/2017-Central Tax (Rate) dated 28.06.2017 and Entry No. - 69(b)(iv) of Notification No. - 9/2017-Integarted Tax (Rate) dated 28.06.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate and city level. (ii) It provides in depth of section's performance, skill analysis highlights areas of improvement for section. (iii) Assess and inform students understanding of concepts and about critical learning gaps. (iv) What should teachers do to improve classroom instruction. (v) Provides insight more in Mybooks i.e. Student Mybook, Teacher Mybook and Management Mybook. (vi) Student Mybook consists of following : Response Sheet, Skill Profile and Remediation target, Strength and Weakness with remediation planning, Practice question for learning check. (vii) Teacher Mybook consist performance table for student responses, Skill summary for remediation target, CWA question with remediation planning, practice question for learning check. (viii) Management Mybook offers benchmarking of the whole school at city, regional and national level. (ix) POST ASSET analysis with a focused 1 day workshop is conducted by special trainers. 4.3 It has been submitted that as per the dictionary meaning of Examination, "Examination is a formal test that you take to show your knowledge or ability in a particular subject or to obtain a qualification." However, the ASSET being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a personalised report which highlights their strong and weak skills. Practice questions for the weak skills are also provided. 4.5 From the above referred information, ASSET is a benchmarking test for school and not examination conducted by the school in respect of their core activity i.e. Education upto the level of higher Secondary. Further, GAAR has observed that "ASSET exam is conducted without any pre / post teaching business with the school" and "under ASSET, they do not provide any pre or post exam teaching to the students", whereas in Management Mybook 2018, it has been mentioned that the ASSET provides 'feedback' on real learning to student. They also provide them personalized report which highlights their strong and weak skills and practice question for weak skill in order to reinforce concepts in weak skills. 4.6 Further, it has been submitted that the applicant, in Student Mybook 2018 explained to parents, "what is ASSET". Content of the Student Mybook 2018 is reproduced below for ready reference - Make ASSET your child's ASSET ! Dear parent, This Mybook is a personalized and comprehensive tool that will not only help you understand your child's performance bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19 (11) TMI 157), it was held that supply of printing question papers is eligible for exemption under Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. In these cases, the supplier received orders for printing of question papers, with the content of questions provided to them. However, in the instant case, the applicant has been preparing the questions too apart from printing them. Further, the applicant's activity is not limited to that extent and they are further involved in chain of events like providing reports to students, teacher and management, personalized practice questions to the students and continuous academic support team to help the school teachers make the most out of the insights derived, plan remedial measures and to make necessary adjustments to their teaching plans. Thus they are not merely involved in providing the question papers to the schools. 4.9 It has been submitted that in view of the above, the ASSET Assessment Programme of the applicant does not satisfy the condition that the supply of service (ASSET) provided by them is in relation to the examination conducted by the educational institution. Therefore they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in relation to a particular subject, the essence of the meaning is to be construed in view of the subject in relation to which the meaning are narrated. Therefore, the term 'examination' and 'assessment' when viewed from the academic perspective indicate that the same are synonyms and both the terms indicate that the subject is put to attest or like tool which would help in ascertaining the knowledge level of the subject in a particular subject. The department's view that they have provided an 'assessment programme' instead of 'examination' by using so many words, falls flat inasmuch as 'assessment' and 'examination' in academic perspective mean one and the same thing. 5.2 The applicant has submitted that Examination does not start and end with just writing answers to set questions, but it also involves analyzing the result in details so as to offer the student, parents and the entire class a structured report. Schools are free to choose when and how to take these exams and whether to outsource some or whole part of it to agencies like them. Further, Section 29(2)(h) of the Right to Education Act stipulates that while laying down the curriculum and evaluation procedure, the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion does not take away the point that ASSET is an examination. 5.5 The applicant has submitted that providing full time support for school and teachers with regard to ASSET tool does not change the fact that they are rendering service in relation to conducting an examination. Further, it is submitted that one day workshop is conducted for the sole purpose of explaining to the teachers as to how to analyse the reports generated after the class has taken ASSET exam. This is required because the reports are very detailed and it is important that the teachers need to be trained on how to analyze it. They don't have any kind of interaction with the students whatsoever hence the question of providing training to students does not arise. 5.6 The applicant has submitted that department has raised another observation that the company is into building products that focus on diagnostic assessment and personalized learning and not in preparation of examination. In this regard, it is submitted that ASSET does not have any trait of rendering personalized training and department does not bring any evidence whatsoever on record to prove that ASSET is personalized training of students. The conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t which states that, ASSET shall form mandatory part of their examination and evaluation of the students. Schools have themselves agreed that ASSET shall form part of their examination system. The fact that they provide question paper in physical as well as online format to the school and also the other fact that if any school took ASSET, it is mandatory to take for all the students in a class and they are not at a liberty to take it for few students only, have not been taken into consideration. 5.12 The applicant has submitted that the above facts clearly point out that they have provided service to schools in relation to conduct of examination and as such the service is squarely covered under Sr. No. 66 of Notification No. 12/2017-Central Tax (rate) dated 28.06.2017. Further, it is submitted that they provide ASSET package which is mandated by the schools to be used in their examination system. ASSET test the skill of all the students in the class and provides a detailed report card like the exam results with percentile etc. Entry 66 does not say that exemption shall be available to a person who provides only exam papers, it sanctions the exemption to ALL services provided in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition (1) (2) (3) (4) (5) 6 Heading 9992 or Heading 9963 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; (ii) 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) shall apply to an educational institution other than an institution providing services by way of preschool education and education up to higher secondary school or equivalent: Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... got printed by the applicant and not by the schools. 8.2 On going through the School Summary Form (EB / ARO) 2019 submitted by the applicant, it appears that the ASSET test is taken twice a year, i.e. 'Summer Round' and 'Winter Round'. In the said School Summary Form (EB / ARO) 2019, the ASSET Test dates have been mentioned as 'Summer Round - 5th to 9th August, 2019' and 'Winter Round - 2nd to 6th December, 2019'. It has also been mentioned in the said Form that the 'Test dates as specified should be strictly followed by the school'. Thus, the dates of the ASSET are fixed by the applicant and not by the schools. The contention of the applicant that the schools are free to choose when and how to take these exams, is therefore, found to be contradictory to the documentary evidence. 8.3 In the School Summary Form (EB / ARO) 2019 submitted by the applicant, the details of 'Package' has been mentioned as follows :- 13. PACKAGE Subjects Number of Students class wise Total Amount 3 4 5 6 7 8 9 10 English + Maths + Science ₹ 600 Social Studies ₹ 250 NA NA Hindi ₹ 250 NA NA NA Gross Total Less : 10% Discount / Administration Cost Dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appear to have any role in it. This indicates that neither the ASSET is an examination conducted by the schools, nor the role of the applicant that of providing services relating to conduct of examination by the schools. 9.2 The Student Mybook 2018 explaining "what is ASSET" has been addressed to the parents. Had the ASSET been a case of providing services to schools only, there would not have been any occasion for the applicant to communicate with the parents of the students. 9.3 The Student Mybook contains a set of personalized practice questions, which are unique for each student taking ASSET inasmuch as no other student taking ASSET would get exactly the same set of question. Thus, in case of ASSET, the role of the applicant is even beyond conducting of test, evaluating the answers and preparing the results. This aspect also becomes prominent from the fact that the applicant provides full time support for schools and teachers with regard to ASSET, conducts one day workshop for teachers to explain them how to analyse the reports generated after the class has taken ASSET exam as the teachers need to be trained on how to analyze the reports, which are very detailed. 10. It app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ects viz. English, Mathematics and Science and other optional subjects viz. Social Studies and Hindi. It is not forthcoming how the performance of students can be evaluated for giving internal marks in case where the students have taken ASSET only for group of subjects viz. English, Mathematics and Science and not for optional subjects viz. Social Studies and Hindi. 11.3 The applicant has also contended that ASSET is conducted by the schools by using their infrastructure and the applicant merely provides the question papers and test materials. We observe that the physical infrastructure of the schools is used to conduct various examinations, however, such usage of physical infrastructure of schools cannot be the basis to determine who conducts examination. Even the Central and State Educational Boards which conduct Standard X and XII examinations (prepares and get printed question papers, gets the answer sheet evaluated and declares the results) use the infrastructure of various schools. However, in such cases also, the examinations are said to be conducted by the Central and State Educational Boards, and not by the schools. For the same reason, explanation IV inserted to Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices are sought to be taxed at the standard rate of 18%." We find that the aforesaid 'Flyer' echoes the spirit behind exemption granted to various specified educational services and levy of Goods and Services Tax on other educational services. Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) grants exemption to various educational services. We have elaborately discussed hereinabove whether the services provided by the applicant in the form of ASSET is covered under the said Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate). Obviously, each and every educational service has not been exempted from the Goods and Services Tax. Therefore, reliance placed by the GAAR on the said 'Flyer' highlighting the content which says that "Auxiliary services received by such educational institutions for the purpose of education up to Higher Secondary level is also exempt from GST", to arrive at the conclusion that the services have been provided to the schools in relation to conduct of examination of students by such educational Institutes, is found to be misplaced. 11.6 Further, when the ASSET is found to be conducted by the applicant and not by the schools, the phrase "relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs are set and printed by the applicant, its timings are fixed by the applicant, answers are assessed and result is given by the applicant. Thus, in case of ASSET, the entire gamut of activities is carried out by the applicant. It is evident that the facts in the cases of Edutest Solutions Pvt. Ltd., The Bangalore Printing and Publishing Co. Limited and Datacon Technologies are quite different than the present case and therefore the said decisions are not found to be applicable in the present case. 13.2.1 The applicant has relied upon the Ruling in case of Attest Testing Service Ltd. [2019 (29) GSTL 528 (AAR-GST)] in support of their contention that the service provided by them in ASSET is providing subject wise exam papers and evaluate the result of students who take this exam and it is composite in nature. 13.2.2 The issue before us is not whether the supply in the form of ASSET is a composite supply or otherwise. Therefore, we do not intend to delve further into this aspect. 13.2.3 Even otherwise, in the case of Attest Testing Services Pvt. Ltd., it was held that the exemption under Entry 66 of Notification No. 12/2017-Central Tax (Rate) would be available to the applicant on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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