9911796707
TMI Blog2022 (2) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... Since he is not registered under the GST Act presently, he is considered as an unregistered person. The applicant is a Professor of Law at the National Law School of India University, Bengaluru and is engaged in classroom teaching and training for students and other personnel. 3. The applicant has sought advance ruling in respect of the following questions: a. Whether the income earned from conducting Guest Lectures, amounts to or results to as taxable supply of services? b. Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as taxable supply of service to be taxed at Nil rate as per Heading 9992? c. Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at (Integrated Tax) 18% under Heading 9983? 4. Admissibility of the application: The question is about "determination of the liability to pay tax on any goods or services or both" and hence is admissible under Section 97(2)(e) of the CGST Act 2017. 5. BRIEF FACTS OF THE C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India and State Government of Karnataka and International Institutions such as UNDP, or otherwise. iv. In February, 2019 the applicant was advised to register himself under the GST Regime as their total income exceeded Rs. 20,00,000/-in the financial year 2018-2019, from his activities such as delivering of Guest Lectures at Institutions of International and National Repute, recognized by the UGC, and sponsored by Government of India and teaching interconnected activities under a Project sponsored by the United Nations Development Programme. v. Owning to the Income having exceeded Rs. 20,00,000/ - in the Financial Year 2018-19, the applicant registered himself with GSTIN 29AFZPB2086B1ZB as on 05/ 03/ 2019. vi. However, the Applicant understands that the delivery of guest lectures and teaching Services to Universities and Projects funded by Government of India and State Governments are Taxable Supply of Services within the meaning of Section 2(109), as such seeks the clarification of the Hon'ble Advance Ruling Authority on the aforesaid facts and circumstances of the Applicant. 2. The applicant has filed an application before the Advance Ruling in Form GST ARA-01 on 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any law: It means such educational services 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 note that the service should be delivered as part of curriculum. Conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification. Services provided by way of education as a part of a prescribed curriculum for obtaining a qualification recognized by a law of a foreign country would not be covered in this entry. The course should be recognized by an Indian Law. In the context of vocational education / training / skill development courses (VEC) offered by an institution (as an independent entity in the form of society or any other similar body), qualification implies a Certificate, diploma, Degree or any other similar Certificate. Under Central Goods and Services Tax Act - CGST (12 of 2017) core education services provided by educational institutions, as mentioned below, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation. (iii) Heading 9983 or any other Heading of Chapter 99 (Sl.No.48 of the Notification 12/2017 CT Rate dated 28.06.2017) exempt - Taxable services, provided or to be provided, by a Technology Business Incubator or a Science and Technology Entrepreneurship Park recognised by the National Science and Technology Entrepreneurship Development Board of the Department of Science and Technology, Government of India or bio-incubators recognised by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India. From the above and on study of the relevant provisions of CGST Act 2017, relevant notification and submissions made by the applicant, it appears that:- (i). The applicant primarily engages in Classroom Teaching and Training for Students and other personnel, delivers guest lectures at Institutions of International and National Repute, recognized by the UGC, and sponsored by Government of India and teaching-interconnected activities under a Project sponsored by the United Nations Development Program and also provides Teaching a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd to avail the exemption. As per the question, the taxpayer only requests to know whether Income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results in Supply of Taxable Services. As per the information supplied by the applicant, Income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka to be taxed at Integrated Taxed 18% under Heading 9983 as no information is forthcoming whether the training is being provided to Central Government, State Government or Union Territory Administration, to merit classification under 9992, wherever fee is charged by the education institution, the service proved is not exempt. Q.3. Whether the Income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at Integrated Taxed 18% under Heading 9983? (SAC 9983-Other professional, Technical and business services) Ans.03. The question may be seen in two different contexts: 1. As per Notification No.12/ 2017- Central Tax ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, beliefs of a particular society, country, and as such any law or legal awareness and the like amount to the ideals of the country and 'art' may be defined to include something that requires skill. 6.4 The applicant is of the view that the training and education provided by him is on Law, Legal Awareness and the like, relate to arts and culture and is engaged for recreational purposes to break the monotony of the classroom lectures, by engaging guest faculty who are able to convey the subtleties of the law in a recreational manner, thereby breaking the ice for the recipients. 6.5 The applicant in view of the above submits that the Guest Lectures and Training activities provided by him on Law and Legal awareness amounts to services by way of training or coaching in recreational activities relating to arts or culture, and as such amount to non-taxable supply. 6.6 The applicant submits that he provides teaching, training, and interconnected activities under research and training programmes granted by GOI and GOK. The applicant further submits that the services provided by him are pure services and falls under Item 3 of Notification No.12/2017 - "Pure services (excluding w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 11 (4) states that any notification published by the Central Government under Section 11 (1) and 11 (3) of CGST Act, 2017 shall be treated as order under the Karnataka GST Act, 2017 and as such the same not being amenable to levy of SGST. 7. The applicant has submitted MOU between Ministry of Environment, Forest and Climate Change, Government of India and Centre for Environmental Law Education, Research and Advocacy (CEERA), National Law School of India University towards project granted to National Law School. 8. In view of the above, the applicant states that the services rendered by him like teaching and training programmes are prima facie non-taxable supply of services for the purposes of the Central Goods and Services Tax Act, 2017. PERSONAL HEARING/ PROCEEDINGS HELD ON 26-11-2021 9. Sri Rohith R. Kamath, Advocate & Authorised Representative of the applicant appeared for personal hearing proceedings held on 26-11-2021 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 10. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aching in recreational activities relating to arts or culture as per entry No.80 of Notification No.12/2017-Central Tax (Rate) dated: 28.06.2017 is not tenable. 15. The applicant is a Professor of Law at National Law School of India University who also provides guest lectures on law and law awareness and the same are covered under "other professional, technical and business services" which is taxable at 18% GST as per entry No.(ii) of 21 of Notification No.11/2017 Central Tax (Rate) dated: 28.06.2017 which is reproduced below: Sl.No. Chapter, Section, Heading Description of Services Rate (percent.) Condition 21 Heading 9983 (Other professional, technical and business services) (ii) Other professional, technical and business services other than (i) above 9 - 16. The applicant states that he provides teaching and training and interconnected activities under Research and Training Projects granted by the Government of India and State Government of Karnataka. The applicant likes to know whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to taxable supply of service to be taxed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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