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TMI Blog2022 (10) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... icant and individual student on a one to one basis; and (ii) providing education up to Higher Secondary School; falls under SI.No.66(a) of Notification No.12/2017 - Central Tax (Rate). 4. Contentions of the Applicant: 4.1. The applicant submits that they are offering education services to student's through its own online platform. The applicant provides services in the following categories;- a. Educational services to individual students. b. Educational services to institutions and the students. c. Educational services to Government. 4.2. The applicant submitted the process of registration and the nature of services rendered by them in detail. In order to register the students has to visit website of the applicant the student submits the application, the resource person of the applicant namely; www.tutorcomp.com and enter the necessary particulars in the application. On submission of the application the student will be contacted by the resource person of the applicant. After ascertaining the particulars, requirement of the student, the academic coordinator (teacher) will be allocated to each student. Academic coordinator will assess the details filled in and speak to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant is an organization having a well defined organization structure consisting of advisory board, resource persons, infrastructural facilities and the applicant has 75+ educators i.e., instructors, 500+ students. Hence the applicant clearly qualifies as an institution. Next condition is that the said institution should provide "education" up to Higher Secondary School or equivalent. Education is the systematic instruction, schooling or training given to the young persons in preparation for the work of life. It also connotes the whole courses of scholastic instruction which a person has received. Education connotes the process of training and developing the knowledge, skill, mind and character of students by format schooling. Education is necessary to develop the personality of a person as a whole and in totality as it provides the process of training and acquiring the knowledge, skills, developing mind and character by formal schooling. State of Orissa Vs. Mamata Mohanty. (2011) 3 SCC 436. 4.6. Further in P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537), the Hon'ble SC observed that:- 81. "Education.'' according to Chambers Dictionary is "bringing u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers and capabilities of human beings; (c) is not merely the instruction received at school or college but the whole course of training moral, intellectual and physical. And it is sometimes used as synonymous with learning'". Further it is also contended that these judgments also make it clear schooling is not the only method of providing education, and any kind of systematic training constitutes "education". Therefore any training or instruction given to the young for their preparation constitutes education. In respect of the exemption relating to education services of pre-school and up to higher secondary; the course need not have a curriculum, the qualification need not have legal recognition or approval, the words; "by way of " indicates that the exemption is broad and the emphasis is on the stage of education. The objective is to increase the speed of basic education, reduce the cost and make it free from all taxes. The exemption of sub-clause (i) is without any condition unlike many stipulations for (ii) and (iii) in the definition of educational institution in the same exemption notification. The exemption is targeted towards school education in all forms and as per the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory; (iii) security or cleaning or house-keeping 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 pre-school 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 providing services by way of, - (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course. Nil Nil 7.2. The educational services are classified under Heading 9992 in Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. As per the Scheme of Classification of Services under GST notified as Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 the education service under Heading 9992 are further sub-divided into six groups comprising of pre - primary, pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y way of pre-school education and education up to higher secondary school or equivalent. "Education" is not defined in the CGST Act but as per Apex Court decision in "Loka Shikshana Trust v/s CIT", education is process of training and developing knowledge, skill and character of students by normal schooling. 7.6. The entry exempts educational institutions from pre-school to higher secondary school or an educational institution which is equivalent to a 'school'. Admittedly, the applicant is not a formal school, but an institution providing special training / coaching to students who are enrolled in formal schools for education up to higher secondary or equivalent. Even though the activity; training and coaching undertaken by the applicant can be claimed to be education services in layman's understanding, those activities do not qualify to be classified under any of the Groups; 99921 - Pre-primary education services; 99922 - Primary education services or 99923 - Secondary education services as core educational services provided by schools up to higher secondary or equivalent. On the contrary the services provided by the applicant are appropriately classifiable under Head ..... X X X X Extracts X X X X X X X X Extracts X X X X
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