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TMI Blog2022 (10) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... NO.08, Krishna Nagar Colony, Kakaguda Village, Wellington Road, Picket, Secunderabad, Hyderabad, Telangana- 500009 (36AACCM2333F1ZV), is being referred to the Appellate Authority for Advance Ruling for the state of Telangana in terms of Section 98(5) of the CGST/TGST Act, 2017 for hearing. X X X X Extracts X X X X X X X X Extracts X X X X ..... g it, purifying it. Processing the examination results by applying all the rules and generating the result sheet, tabulation of result and declaration of result, then issuing the marks memos to the students. The same procedure is followed for the supplementary exams to be conducted for the failed candidates. Scope of work for State Education Boards: 6. The scope of services from the contract entered with Director of Government Examinations (DGE), Nampally, Hyderabad, Telangana is mentioned below. Scope of work: The entire project work can be broadly divided into two parts. i. Pre-examination work ii. Post-examination work Pre-examination and Post examination work is required to be carried out in the premises of DGE, Telangana in the room allocated for the purpose. The applicant cannot sub-let any part / item of work to other agencies as the work is very sensitive, time bound and most confidential in nature. Relevant clauses enumerating the scope of service to be provided by the applicant are extracted herein below: Data Processing: The data processing consists of data entry and other activities. The applicant should arrange sufficient required equipment for scanning o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the prescribed format on CDs in order to print SSCs with variable data with images (photos). vi. Pass memos on printed stationery 7. The applicant has to establish the processing unit at designated location, deploy the required manpower, arrange required stationery as per the specifications of DGE, printing & supply of OMR Sheets, Attendance Sheets, submission of various reports, etc. Scope of work for Universities: 8. The Scope of work from the contract entered between the applicant and the Controller of Examinations, Osmania University, Hyderabad, Telangana is mentioned below. The scope of work for Digitization of answer scripts and onscreen evaluation: a) Scanning of answer scripts b) Uploading of the scanned answer scripts data into server. c) On-screen evaluation of answer scripts d) Providing of marks data for result processing Responsibilities of University: i) The University shall provide necessary accommodation, infrastructure, stabilized electric power, power backup, Air conditioning, furniture and other basic facilities like internet bandwidth to carryout the scanning of answer books, storage facility for storing the answer books and transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the University Scope of work for Open Universities: Scope of work for open Universities 9. The applicant has also entered into contracts with open Universities for providing pre and post examination services. The scope of work under the contract entered with the Registrar, Yeshwantrao Chavan Maharashtra Open University, Nashik, Maharashtra is mentioned below. Scope of Examination Management System: The applicant shall provide - a) Pre-Examination services covering exam scheduling, hall ticket generation, generation of attendance sheets, summary, daily report, Jr. Supervisor report and collected fee management, etc. b) Customized software for question bank development as per blue print of YCMOU time to time and training to the item writers and all concern, QP generation, uploading QP. c) Digital valuation services include pre-CAP, scanning of AB, making available for evaluation, identifying CAP centres as per need throughout Maharashtra State, with necessary IT infrastructure, Controlling the CAP centres, Evaluators mapping as per the list given by the Open University. d) Post examination services covering result processing, moderation, gracing, verifying missing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following questions for Advance Ruling and their interpretation on the questions as under: a. Whether GST exemption is available to the applicant in respect of the pre and post Examination services being provided to the Educational Boards and Universities (including Open Universities)? b. If answer to Q. No.1 is affirmative, whether the exemption is available to the applicant in case the services are provided on sub-contract basis i.e. the applicant provides pre and post examination services to the main contractor who in turn provide the said services to the Educational Boards & Universities (including Open Universities)? Applicant's understanding: 15. The applicant believes that the supply of pre and post examination services to educational institutions like Educational Boards, Universities (including open Universities) are in relation to admission to, or conduct of examination by the said institutions. Accordingly, the services being provided to the educational institutions would fall under Sl. No. 66(b)(iv) NN-12/2017 and eligible for exemption from payment of GST. 16. In case of provision of pre and post examination services by the applicant as a sub-contracto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course, 20. Thus, from the above definition, it is understood that any institution which provides education for obtaining a qualification recognized by any law is treated as an educational institution. Further, any service provided relating to admission to, or conduct of examination by, such institution is eligible for exemption. 21. In the present case, the applicant has entered into agreements with State Education Boards and Universities (including open universities) in different states for providing pre and post examination services. 22. As per the scope of work under the agreements entered between the applicant and educational institutions, the applicant shall arrange required equipment for scanning of ICR forms & OMR sheets viz. Servers, ICR Scanners, OMR Scanners, PCs along with the Printers, Modems, UPS, etc. The secured office area and power will be provided by the service recipient viz. educational institute. 23. The activities being carried out by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said universities. The open universities directly impart education to students through contact classes. The course material and books are directly supplied by the Open Universities to the students. The degrees or diplomas are also granted by the Open Universities. The Open Universities are also established by law and the qualifications awarded by them are recognized by law. 30. The applicant submits that in case of State Education Boards and Universities, the education boards/universities conduct the examinations and grant certificates/degrees to the students and the affiliated colleges only facilitate for imparting the education to the students. 31. The applicant also submits that the term "education' is very wide and it would include imparting of study, learning, conduct of examination and grant of certificates or degrees to the students by the education boards and universities including open universities. 32. The applicant submits that the Hon'ble Supreme Court in the case of Gujarat University vs. Krishna Ranganath Mudholkar [AIR 1963 SC 703], held that the expression education' is of wide import and includes all matters relating to imparting and controlling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould mean the entire process of learning, including examination and grant certificate or degree or diploma, as the case may be and would not be limited to the actual imparting of education in schools, colleges or institutions only. Unless the School Boards hold examinations, the education of school students would not be complete, so is the case with college students, whose education would be complete only when the University conducts examinations and awards degrees or diplomas. It is the School Boards which issue the Secondary and Higher Secondary School Certificates after holding examinations and the University which confers degrees/diplomas etc. after holding examinations. Unless a student holds a certificate issued by a Board, his or her school education would not be complete, similarly, without a degree or diploma being conferred by the University, college education would not be complete. Therefore, examinations 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. 35. The term 'educational institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant degrees/certificates to the students. For this purpose, the educational boards are availing pre and post examination services from the applicant. 44. The applicant submits that the services such as data processing, generation of hall tickets, result processing, scanning of OMR sheets, printing of Memos, etc., provided to the State Education Boards would qualify as services relating to conduct of examination by the educational institutions (State Education Boards in this case). 45. Thus, the second condition specified under Sl. No. 66(b)(iv) of the NN - 12/2017 is also fulfilled. Accordingly, the applicant submits that in this case, exemption is applicable to the applicant in respect of the pre and post examination services being provided to the State Education Boards. Services provided to Universities: 46. The applicant has also entered agreements with various Universities for providing pre and post examination services. As submitted above, the Universities impart education to the students and the colleges affiliated to the said universities act as facilitators. The University prescribes the syllabus and provide the same to the colleges. The Universities conduct examination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing education, conducting examinations and granting certificates/degrees to the students as part of a curriculum for obtaining a qualification. Therefore, the said Universities are also covered under the definition of 'educational institute' as provided under NN-12/2017 52. The services being provided by the applicant to the Universities are in relation to conduct of examination. Accordingly, in this case also the two conditions viz. services are provided to educational institutes and the services are in relation to conduct of examination are fulfilled. 53. Further, the applicant submits that there would not be any distinction between Education Boards and Universities for providing exemption when the same services are provided by the applicant to the Education Boards and Universities. Accordingly, the applicant submits that exemption would also be available to the applicant in respect of the pre and post examination services being provided to the Universities. 54. Thus, the applicant submits that the services being provided to the Universities are also covered under Sl. No.66(b)(iv) of the NN-12/2017 and the applicant is eligible for the exemption. 55. The applicant als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional boards be treated as exempted supply of service. The relevant extract from the ruling given by the Andhra Pradesh Advance Ruling Authority in the said is reproduced below. In the instant case, the educational institutions as referred to by the applicant for whom the supplies of the services of printing of examination related material are made intended to be made are Mumbai university examination Committee, Bihar University Examination Committee, JNTU, Kakinada. All of the three institutions invariably fall under the category of educational institution" as they fulfil the criterion of 'institution providing services by way of, - (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;! Further, with reference to the services provided by the applicant, they are nothing but 'services relating to admission to, or conduct of examination by, such institution' falling under Sl.No.66 of the said exemption notification of No. 12/2017-CGST [Rate) dated 28.06.2017 as amended. 63. The applicant also places reliance on the following cases wherein it was held that the provision of service of scanning of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Advance Ruling to grant an opportunity of personal hearing to serve the principles of natural justice. 69. The applicant also respectfully prays that they may be permitted to file additional material / written submissions at the time or after the personal hearing as may be required. III. Personal Hearing: The Authorized representatives of the unit namely Sri S. Purushotham, Accountant & G. Jagannath, Advocate, authorized representatives of the firm attended the personal hearing held on 27-04-2022. The authorized representatives reiterated their averments in the application submitted and contended as follows: 1. That, they are making supplies under Clause (IV) of (b) of Sl.No.66 of Notification 11 of 2017 which was amended subsequently vide Notification No.2 of 2018 to omit the phrase 'upto higher secondary education' from the provision to the said entry. They are desirous of ascertaining their eligibility for exemption under the said provision. 2. That, they are also executing the above service as sub-contractor and are desirous of ascertaining whether the said exemption extends even to the sub-contractor. IV. The opinion expressed by Sri S.V. Kasi Visweswara Rao, Addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upto higher secondary education' from the provision to the said entry : "Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent". After omission of the phrase 'upto higher secondary education' service provide to all educational institution the services provided to Universities is also covered under this entry. Further the entry 66(b) regarding this service is abstracted as under: "Services provided - … (b) to an educational institution, by way of,- … (iv) services relating to admission to, or conduct of examination by, such institution." Thus the service relating to admission to or conduct of examination is exempt when provided to such educational institution. Therefore as a service itself is exempt, this exemption can be claimed by any taxable person including a sub-contractor. In view of the above discussion, the questions raised by the applicant are clarified as below: Questions Ruling 1. Whether GST exemption is applicable to applicant in respect of the pre and post Examination service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds under S. No. 66 (b) (iv) of Notification No. 12/2017-CT(R). As seen from the averment of the applicant they claim to supply services which are related to conduct of examination. And the Sl.No.66 of Notification No.12 of 2017-Central Tax (Rate), dt: 28-06-2017 provides for exemption for services related to admission to or conduct of examination by such institution. Further the proviso to the entry at Serial No. 66(b) read as follows earlier to its modification vide Notification No.2 of 2018 to omit the phrase 'upto higher secondary education' from the provision to the said entry : "Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent". After omission of the phrase 'upto higher secondary education' service provide to all educational institution the services provided to Universities is also covered under this entry. Further the entry 66(b) regarding this service is abstracted as under: "Services provided - … (b) to an educational institution, by way of,- … (iv) services relating to admission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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