2018 (11) TMI 662 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (19) G. S. T. L. 148 (A. A. R. – GST) – Liability of GST – education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force – long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru – reverse charge mechanism – supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru – Applicability of entry no. 66 in the presence of specific entry no. 67.
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Held that:- The two competing entries of N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 relevant to the issue are Entry no. 66 and 67. Both these entries relate to services falling under the Heading 9992. The Heading 9992 appears at serial number 581 in the Annexure: Scheme of Classification of Services attached to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. There are six Groups of various Education
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ion from GST on long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru.
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There is no exemption from GST on supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru. – AAR No. KAR ADRG 25/2018 Dated:- 25-10-2018 – SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by : Sri Veeresh S. Kandgol, Chartered Accountant ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 1. M/s Indian Institute of Management, Bangalore (called as the Applicant hereinafter), No.12, Bannerghatta Road, Bengaluru – 560076, having GSTIN number 29AAAAAI0405N1ZQ, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of ₹ 5,0
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ax (Rate) dated 28th June 2017 as amended by Notification No. 2/2018 dated 25th January 2018 being education provided as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of enactment of the Indian Institute of Management Act, 2017? 3. The applicant furnishes some facts relevant to the stated activity: a) The applicant states that they are an educational institution of excellence established in the year 1973 with the objectives of imparting high-quality management education and training, conducting industrial and management research, etc. The applicant was established under the auspices of the Ministry of Human Resources Development (MHRD) Government of India as a premier educational institution and is renowned in India for its management education programs. b) That the applicant was registered as a society with the Registrar of Societies, Mysore State (now Karnataka) vide No. 403/71-72 dated 27-03-1972 and is recognized
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tfolio of programmes which cater to multiple sectors of society. The IIMB nurtures a teaching philosophy which encourages students to apply their learning in solving the real-life challenges around the world. IIMB currently offers 5 long duration programmes which collectively develop entry and middle level management professionals for companies, government and non-governmental organisations. IIMB also offers certificate programmes of short and long durations under Executive Education Programmes for mid and senior level Executives. f) The applicant has provided the details of long duration programmes offered by it and its taxability is given in the table as below: Sl.No. Programmes Offered Period Taxability under GST as per Notification No. 12/2017 Central Tax (Rate) dtd 28-06-2017 1 Fellow Programme in Management (FPM) is a full time doctoral programme and is committed to train individual who will excel in their area of research through publication of high quality work of international
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e in Enterprise Management (PGPEM) is a weekend management program, designed for middle and senior level working professionals. Participants learn from World Class faculty, while strengthening their network through collaboration with peers during their on-campus long week-end session 2 years Exempted 3 Post Graduate Programme in Management (EPGP) is an intensive program designed to enhance skills and capabilities essential for responsible position at senior management level. Challenging widespread and globally oriented, the objective of this programme is to produce future leaders who can handle the dynamic corporate environment. 1 year Exempted h) The applicant states that currently certain programmes offered by IIM are exempted as per the Notification No. 12/ 2017 – Central tax (Rate) dated 28th June, 2017. As per the applicant the relevant Heading 9992 vide Sl. No. 67 under which exemption to programmes offered by IIM. The said entry is reproduced as under: Sl.No. Chapter, Section, H
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28th June 2017 has not addressed the current change in Constitution in respect of IIMB. i) The applicant has reproduced the provisions of the Indian Institute of Management Act, 2017 in support of awarding of educational qualification which is recognized by the said Act: i. Section 2 : Declaration of certain institutions as institutions of national importance. Whereas the objects of the Institutes mentioned in the Schedule are such as to make them institutions of national importance, it is hereby declared that each such institute is an institution of national importance. ii. Section 3 (h) – Institute means any Institute mentioned in column (5) of the Schedule; iii. Section 4: Incorporation of Institutes (1) On and from the commencement of this Act. Every existing Institute shall be a body corporate by the same name as mentioned in column (5) of the Schedule. iv. Section 7 : Powers and functions of Institute Subject to the provisions of this Act, every institute shall exercise the foll
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programmes or courses of study at the Institute; (f) to grant degrees, diplomas, and other academic distinctions or titles, and to institute and award fellowships, scholarships, prizes and medals; (g) to confer honorary degrees in such manner as may be specified by the regulations (h) to grant honorary awards and other distinctions; (o) to specify by regulations the institution of fellowships, scholarships, medals and prizes; viii. Section 15: Powers and functions of Academic Council. (1) The Academic Council shall perform the following functions, namely: (a) to specify the criteria and process for admission to courses or programmes of study offered by the institute; (b) to specify the academic content of programmes and courses of study and undertake modifications therein; (c) to specify the academic calendar, guidelines for conduct of examination and recommend grant of degrees, diplomas and other academic distinctions or titles. ix. Section 32: Returns and information to be provided t
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galuru Indian Institute of Management, Bangalore xi. Meaning of the term any law for the time being in force Further the expression any law for the time being in force is of wide connotation. It is submitted that the word law itself is very wide in its scope and would include within its ambit not only statutes (whether taxing statute or otherwise) but an order made by the Government, resolution of Government, Government schemes, notification, rules and regulations, customs, usage, etc., which have the force of law. xii. Meaning of the term Curriculum Curriculum refers to the means and materials with which students will interact for the purpose of achieving identified educational outcomes. xiii. The applicant states that in his case the law means The Indian Institute of Management Act, 2017. Thus, as per the provisions of the Indian Institute of Management Act, 2017 the long duration programmes discussed above are approved curriculum-based programmes offered by IIMB. xiv. Therefore, in
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ng or house-keeping 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 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 equipment; or (ii) Education as a part of an approved vocational education course. (v) Supply of online educational journals or periodicals: Nil Nil j. The applicant prays to provide the Advance ruling as mentioned below: (a) To exempt the output liability on GST for the courses offered by IIMB other than those specifically mentioned in Sl. No. 67 of Notification No. 12/2017 – Central Tax (
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irector referred to the following two Resolutions that had been circulated to the Board Members on 16th March 2018, which was approved by 11 members. Resolution-1: With the coming into effect of the Indian Institutes of Management Act, 2017 and also on the approval of the Faculty body Indian Institute of Management, Bangalore, now reconstituted as the Academic Council, the Board of Governors of Indian Institute of Management, Bangalore, hereby approve the modifications made to the Ordinances. Resolution -2: With the coming into effect of the Indian Institutes of Management Act, 2017 and also on the recommendation of the Academic Council of Indian Institute of Management, Bangalore, have resolved for the conversion of the post-graduate diploma in management into a Master s Degree titled as Master of Business Administration to be awarded by the Board of Governors, Indian Institute of Management, Bangalore, to such eligible persons as may be duly recommended by the Academic Council of the
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ention of the applicant is that the courses offered by the applicant and not covered under entry no. 67 of the said notification are covered under entry no. 66 of the said notification and are also exempt. For this the entry no. 66 needs to be looked: Entry No. 66 reads as under Services provided – (a) by an educational 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 Central Government, State Government or Union Territory; (iii) Security or cleaning or house-keeping 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)
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services to specialized education services. 4.3 Serial No. 66 of the said Notification No. 12/2017 is a general entry in relation to exemption of services provided by an educational institution and /or to an educational institution. 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 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. Therefore all educational services provided by an institute, which leads to a qualification/ degree, recognized by the law, for the time being in force, are exempt from payment of GST. The applicants contention is that since the coming into effect of the Indian Institute of Management Act, 2017 the qualifications/degrees conferred by them are recognized by law, all the educational services provided by them in rela
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ost Graduate Programmes in management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management; (b) fellow programme in Management; (c) five year integrated programme in Management and application of Serial number 66 for the rest of the educational programmes. In conclusion we are of the opinion that when Notification number 12/2017 provides for a specific entry for the Indian Institutes of Management at serial no. 67, the provisions of serial number 66 shall not apply to them. 4.5 Similarly, the second question also relates to the applicability of entry no. 66 in the presence of specific entry no. 67. Therefore the same view holds good for the second question also. Consequently the answer for both the questions posed by the applicant is negative . 5. In view of the foregoing, we rule as follows R U L I N G a) In respect of question (a), Whether the long duration post graduate d
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