In Re: M/s Indian Institute of Management
GST
2018 (11) TMI 662 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (19) G. S. T. L. 148 (A. A. R. – GST), [2019] 66 G S.T.R. 240 (AAR)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 25-10-2018
AAR No. KAR ADRG 25/2018
GST
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 Rs. 5,000-00 each under the CGST Act and
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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 world over as an instituti
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ch 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 standard
5
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rogramme 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.
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ation No. 12/2017-Central Tax (Rate) dated 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 pr
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(d) to establish departments, faculties or schools of studies and initiate 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 oth
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itute of Management, Bangalore, A society registered under the Mysore Societies Registration Act, 1960 (17 of 1960)
Bengaluru
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 Managem
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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;
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 men
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17.
4. The applicant has also submitted the extract from the minutes of 164th Board Meeting held on 17th March 2018.
3. Award of Diplomas, Certificates and Distinctions to Graduands
The Director 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
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amme in management
(2) Other courses including Executive Development Programmes
The courses enumerated at (1) above are covered under entry no. 67 of the said notification and are exempt. The contention 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 education
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assification of Services attached to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. There are six Groups of various Education Services under the Heading 9992 covering all services from pre-primary education 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 appli
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rned, the provisions contained in Serial no. 67 alone shall apply. The constitution of the Notification does not allow selective application of Serial No. 67 in respect of educational programmes like (a) two year full time Post 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 questi
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