In Re: Indian Institute of Management, Calcutta
GST
2018 (11) TMI 336 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (19) G. S. T. L. 104 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 2-11-2018
WBAAR 22 OF 2018, 21/WBAAR/2018-19
GST
VISHWANATH AND PARTHASARATHI DEY, MEMBER
Present for the Applicant Rakesh B Chatbar, Authorised Representative
1. The Applicant, stated to be an Educational Institution funded by the Government of India, engaged, inter alia, in the provision of Educational Services to the students, seeks a Ruling within the meaning of the CGST/WBGST Act, 2017 (hereinafter collectively referred to as “the GST Act”) on the following questions:
(i) After the introduction of the IIM Act wef 31/01/2018 (hereinafter referred to as “the IIM Act, 2017”), whether or not the Applicant should be considered an “Educational Institution”
(ii) If the Applicant is eligible for Eexemption under Entry No. 66(a) of the Notification No.
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s admissible under section 97(2) of the GST Act.
2. Apart from providing Educational Services, IIM Calcutta also imparts placement and recruitment services and renting out of immovable property. Prior to 31/12/2018, the Applicant was a “Society” under the Societies Registration Act, 1860. In terms of the Indian Institutes of Management Act, 2017 (hereinafter “the IIM Act”), the Applicant has become an 'Educational Institution' having the right to award honours degrees etc as provided under the IIM Act with effect from 31/01/2018.
The Applicant is stated to be eligible to grant degrees, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions in terms of section 7(f) of the IIM Act. Therefore, the Applicant qualifies as an 'educational institution' as defined under clause 2(y) of the Notification No. 12/2017 Central Tax (Rate) dated 28/06/2017 and is eligible for exemption under e
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Excise -vs- Indian Petro Chemicals (1997) 92 ELT 13 (SC) = 1996 (12) TMI 66 – SUPREME COURT OF INDIA; HCL Ltd -vs- Collector of Customs (2001) 130 ELT 405 (SC) = 2001 (3) TMI 971 – SUPREME COURT OF INDIA; Commissioner of Central Excise and Service Tax -vs- Orient Bell Ltd (CEA – 65/2016 before the High Court of Karnataka) = 2018 (8) TMI 892 – KARNATAKA HIGH COURT; Winsome Yarns Ltd (Excise Appeal No. 55317-55318 of 2013 before CESTAT, Delhi) = 2015 (9) TMI 459 – CESTAT NEW DELHI]
Referring to these judgments in course of Personal Hearing the Applicant argues that as exemptions under both Entry Nos. 66(a) and 67 are now available, the Applicant should be allowed to claim exemption under Entry No. 66(a), being more beneficial having a broader ambit.
5. “Educational institution” is defined under clause 2(y) of the Exemption Notification as an institution providing services by way of-
(i) Pre-school education and education up to higher secondary school or equivalent;
(ii) Education as
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n 5 of the Schedule to the above Act. The Applicant is mentioned therein.
7. However, the IIM Act does not mention any specific degree/diploma/program that can be or shall be undertaken by the Applicant. In absence of such specification, reference should be made to the degrees/programmes recognized and approved by the University Grants Commission Act 1956 (hereinafter referred to as “the UGC Act”) and the All India Council for Technical Education Act, 1987 (hereinafter “the AICTE Act”) that can be lawfully awarded by any higher educational institution in the country. It can be seen that the AICTE Act and the UGC Act are very specific and detailed about the approved courses/programmes under it. Neither of the above-mentioned Act mentions courses like PGPEX-VLM and CES-MIM..
8. The question, therefore, is whether the Applicant should now continue to enjoy Eexemption under Entry no. 67, which has not been deleted even after the IIM Act came into being, or be considered for exemption und
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