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TMI Blog2022 (7) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... ER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Karnataka Secondary Education Examination Board (hereinafter referred to as the applicant), 2nd Floor, 6th Cross, Malleswaram, Bangalore-560 003, having GSTIN 29AAAGD0301E1DG have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act. 2. M/s. Karnataka Secondary Education Examination Board is an independent Board with statutory powers established by the Karnataka Secondary Education Examination Board Act, 1966 for the purpose of holding and conducting certain public examinations. The Applicant is also registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). 3. The applicant has sought advance ruling in respect of the following questions: i. Whether the Applicant is an "educational institution" and ought to be treate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of the said Act. 5.3 The Applicant states that the functions of the Board involve the conduct of the SSLC Examination. As such, the applicant performs all activities in relation to the conduct of examinations, declaration of results and so on, and for this purpose it engages in procurement activities for stationery and examination materials and outsources activities like maintenance of computer hardware and software. 5.4 The Applicant states that their main activities are printing of examination papers, answer booklets/answer scripts, marks cards, examination admit cards, Circulars pertaining to the activities and functioning of the Board etc. in different formats, for which the Board maintains full ownership of all content to be printed, but the actual printing activity itself is done by third parties decided on a process of tender invitation and competitive bidding. 6. Applicant's Interpretation of Law: 6.1 The applicant's contention is that it ought to be classified as an educational institution stems from the following: 6.1.1 Section 21(aa) of the Karnataka Education Act, 1983 defines "educational institutions" as follows: (aa) "educational institutions" means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court also held that examination are an indispensable component of education, without which such education is incomplete. Therefore, to say that Boards/Universities are not "educational institutions" would amount to divorcing examinations from education. 6.1.6 Clause (1) of Section 66D of the Finance Act may be examined in the light of the above. Sub-clause (i) of clause (1) refers to pre-school education and education upto higher secondary school or equivalent. When the sub-clause says education upto higher secondary school or equivalent, it goes without saying that it includes the examination leading to conferment of a certificate of having passed the higher secondary school or equivalent. Similarly when sub-clause (ii) says education as a part of the curriculum for obtaining a qualification recognized by any law for the time being in force, it is apparent that the Legislature meant the entire process of preparation of curriculum to the holding of examination leading to obtaining of a qualification recognized by any law for the time being in force. If the contribution of the Boards/Universities is excluded, there would be no curriculum for obtaining a qualification nor would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to include all services provided to educational institutions within its ambit, and subject them to Nil rate of GST. 6.2.3 The Applicant submits that the incidental services supplied to the Applicant would be supply of services, which are also liable to Nil rate of GST as per the Notification quoted above. PERSONAL HEARING / PROCEEDINGS HELD ON 10-02-2022 & 14-03-2022 7. Shri Veerabasana Gouda S, Chartered Accountant and Duly Authorised Representative appeared for personal hearing proceedings held on 10-02-2022 & 14-03-2022 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. 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 and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; Further, Section 95 (c) of the CGST Act 2017 defines "Applicant" as any person registered or desirous of obtaining registration under the said Act. 14. It could be easily inferred from above that any person registered or desirous of obtaining registration under CGST Act 2017 can seek advance ruling only in relation to the supply of goods or services or both being undertaken or proposed to be undertaken. 15. In the instant case, we observe that the Applicant, i.e Karnataka Secondary Education Examination Board, is not a supplier. Thus the Authority refrains itself from giving any ruling in respect of the same. 16. In view of the foregoing, we pass the following RULING i. The Applicant is an "Educational institution' for the limited purpose of providing services by way of conduct of examination to the students, as per clause (iv) of Notification No. 14/2018-Central Tax (R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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