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TMI BlogExemption not available to sub-contractor on services provided to educational institutions on behalf of main contractorX X X X Extracts X X X X X X X X Extracts X X X X ..... Exemption not available to sub-contractor on services provided to educational institutions on behalf of main contractor - By: - CA Bimal Jain - Goods and Services Tax - GST - Dated:- 11-1-2023 - - The AAAR, Telangana in the matter of IN RE: M/S. MAGNETIC INFOTECH PVT LTD. - 2022 (11) TMI 1182 - APPELLATE AUTHORITY FOR ADVANCE RULING, TELANGANA has ruled that the sub-contractor is not ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itled to claim Goods and Services Tax ( GST ) exemption on services provided to Educational Institutions on behalf of the main contractor under Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 ( the Services Exemption Notification ). Facts: M/s Magnetic InfoTech Private Limited ( the Applicant ) is engaged in providing pre and post examination services to the E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducational Boards, Universities and Open Universities ( the Educational Institutions ). The Applicant provided services with respect to data processing for conduct of examination, results preparation and generation and printing of statistical data and reports in the prescribed proformas as required by the Educational Institutions. The Applicant sought advance ruling before the AAR, Telangana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w.r.t. applicability GST exemption on the pre and post Examination services provided by the Appellant to Educational Institutions and whether the exemption is available to the Applicant in case of the services are provided on sub-contract basis. The AAR, Telangana ruled that the GST exemption is applicable on the pre and post Examination Services provided by the Applicant under Sl. No. 66 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Services Exemption Notification. Although, regarding the second issue, the AAR, Telangana expressed divergent opinions. Hence, the issue has been raised in this appeal. Issue: Whether the exemption is available 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 provides the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices to the Educational Institutions? Held: The AAAR, Telangana in IN RE: M/S. MAGNETIC INFOTECH PVT LTD. - 2022 (11) TMI 1182 - APPELLATE AUTHORITY FOR ADVANCE RULING, TELANGANA held as under: Noted that, the exemption would be available when the services are provided to an Educational Institution for services relating to admission to, or conduct of examina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion by, such institution. Opined that, the main contractor to whom the Applicant is to provide services as sub-contractor is not an Educational Institution, though the services are allegedly being provided to the Educational Institution by the main contractor, the exemption contained in the Services Exemption Notification is not available to the Applicant. Observed that, when exemption cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained in a notification is to be claimed, the Applicant is to satisfy the conditions prescribed therein. The wordings of any notification have to be strictly read to allow or deny any exemption. Held that, the Applicant as a sub-contractor, is not eligible to claim exemption under the Services Exemption Notification. Relevant Provisions: Sl. No. 66 of the Services Exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Notification : Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (percent) Condition 66 Heading 9992 or Heading 9963 Services provided - (a) by an educa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional 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 Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Government, State Government or Union territory; (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; Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b) shall apply to an educational institution other t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a part of an approved vocational education course. (v) supply of online educational journals or periodicals: Nil Nil (Author can be reached at [email protected] ) - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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