In Re: Indian Institute of Management
GST
2018 (9) TMI 1040 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – 2018 (17) G. S. T. L. 512 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AAR
Dated:- 10-8-2018
10/2018 AAR No. 14/2018/A. A. R. /R-28/37
GST
RHRI RAJIV AGRAWAL AND AHRI MANOJ KUMAR CHOUBEY, MEMBER
Present on behalf of applicant: Arvind Chawla for the Applicant.
PROCEEDING
1. BRIEF FACTS OF THE CASE:
1.1. Indian Institute of Management, Indore (IIM, Indore) [hereinafter referred to as the Applicant] is one of the nineteen IIMs set up by the Government of India. The Applicant institute was established in 1996 by the Government of India as registered society under the Madhya Pradesh Societies Registration Act, 1973 and is governed by a Board of Governors.
1.2. The India Institute of Management Act 2017, received the Presidential assent on 31.12.2017, and the same has been notified to be effective from 31.01.2018. As per the said Act, the
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atering including any mid-day meals scheme sponsored by the Central Government, State Government or Union Territory;
iii. Security or cleaning or housekeeping services provided in such educational institution;
iv. Services relating to admission to or conduct of examination by such institution; upto higher secondary;
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
NIL
NIL
67
Heading 9992
Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government to their students by way of following educational programmes, except Executive Development Programme-
(a) Two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which the admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute
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s, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions.
1.7 In view of the circumstances foregoing, the Applicant has sought to submit it's own views as under:-
a. Services provided by IIM exempted by virtue of exemption Notification no.12/2017-CT(Rate) with effect from 01.07.2017 and corresponding notification under MPGST Act, 2017 are –
i. Two year full time Post Graduate Programmes in Management to which admissions are made on the basis of Common Admission Test;
ii. Fellow programme in Management;
iii. Five year integrated programme in Management.
b. Services provided by an education institution which, inter alia, provides education as a part of curriculum for obtaining a qualification recognized by any law for the time being in force is exempted under notification no.12/2017-CT (Rate)
c. Degrees and Diplomas granted by Applicant are recognized by law by virtu
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nished the opinion of the department and it has been categorically opined that the course Executive Post Graduate Programme does not qualify for exemption as envisaged under Notification No. 12/2017-Central Tax (Rate). It has been further mentioned that the exemption shall be available only to the programmes mentioned in the Notification and EPGP is not covered thereunder. It has therefore, been concluded that IIM Indore does not appear to be entitled to exemption from GST as far as EPGP is concerned.
4. RECORD OF PERSONAL HEARING:
4.1. Shri Arvind Chawla, Chartered Accountant, appeared on behalf of the applicant and reiterated the submissions already made in the application. He pleaded that pursuant to enactment of IIM Act 2017, with effect from 31.01.2018, the Applicant shall be entitled to exemption in terms of entry no. 66 of Notification 12/2017-CT (Rate), as the Applicants now qualify as Educational Institutions as defined for the purpose of this notification.
5. DISCUSSIONS A
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r 66 seeks to exempt services provided 'by an Educational Institution' and 'to an educational institution'. Further, the term 'Educational Institution' has been defined for the purpose of said Notification as under:
2. Definitions – For the purpose of this Notification, unless the context otherwise requires'-
(y) “Educational Institution” means an institution providing services by way of-
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of 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
5.4 However, before we venture into the examination of the issue regarding whether the Applicant qualifies under the Definition of 'Educational Institution' to fall under the ambit of Entry No.66, it is necessary to have a look at the Entry No.67 of the Notification No.12/2017-Central Tax
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nt of GST. It is thus clear that irrespective of enactment of IIM Act 2017, the intention of the legislature was no to tax the flagship education programmes conducted by these Institutions. However, specific exclusion of Executive Development Programme from exemption has been made loud and clear, leaving no scope for any interpretation or reading between the lines.
5.6 We have carefully considered the plea of the Applicant about the IIMs, including Applicant, having been authorised to grant degrees, diplomas and other certificates by virtue of IIM Act 2017. Applicant have vehemently pleaded that post enactment of IIM Act 2017, the Applicant would be providing a Degree duly recognised by law, and accordingly, the services provided by Applicant would be covered under Entry No.66 of the Notification no.12/2017-Central Tax (Rate) and corresponding notification under MPGST Act, 2017. However, we find it difficult to subscribe to the views of the Applicant, on two counts. Firstly, the Entry
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of the statute has been propounded by the Hon'ble Supreme Court in catena of judgments, and one has to strictly go by what is written in the statute. Though, there is no ambiguity in the matter before us, still we have to conclude that the services provided by the Applicant have a specific mention under Entry No.67 to the Notification 12/2107-Central Tax (Rate) and corresponding notification under MPGST Act, 2017, and therefore, there is no good reason to take shelter of a general entry (entry no.66) just to bring the Executive Post Graduate Programme under the ambit of exemption.
5.7. Having regard to the discussions & findings detailed in foregoing paras, we now give our ruling.
RULING
6. The Advance Ruling on questions posed before the authority are answered as under:
6.1 In respect of Question 1, we hold that the Executive Post Graduate Programme will not be eligible for exemption from GST as the same has been categorically excluded from exemption under Entry No.67 to the
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