Applicability of GST on various programmes conducted by the Indian Institutes of Managements (IIMs)
07/2019/GST Dated:- 31-1-2019 Andhra Pradesh SGST
GST – States
Government of Andhra Pradesh
Commercial Taxes Department
Proceedings of the Chief Commissioner of State Tax (FAC), Andhra Pradesh
Present: Sri.J.SyamaIa Rao, I.A.S.
Office of the
Chief Commissioner of State Tax,
Edupugallu, Vijayawada
Circular No.07/2019/GST
CCTs Ref.in CCW/GST/74/2015
Dt. 31.01.2019
Subject: Applicability of GST on various programmes conducted by the Indian Institutes of Managements (IIMs)- Reg.
This has reference to the Indian Institutes of Management Act, 2018 which came into force on 31st January, 2018. According to provisions of the IIM Act, all the 11Ms listed c; in the schedule to the 11M Act are “institutions of national importance”. They are empowered to (i) grant degrees, diplomas, and other academic distinctions or titles, (ii) specify the criteria and process for admission
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a sample list of programs which are of long duration (one year or more), recognized by law and are exempt from GST.
3. For the period from 1st July, 2017 to 30th January, 2018, 11Ms were not covered by the definition of educational institutions as given in G.O.Ms.No.588, Revenue (Commercial Taxes-II), 12th December, 2017 {corresponding notification No. 12/2017-Central Tax (Rate) dated 28.06.2017}. Thus, they were not entitled to exemption under Sl. No. 66 of the said notification. However, there was specific exemption to following three programs of IIMs under Sl. No. 67 of G.O.Ms.No.588, Revenue (Commercial Taxes-II), 12th December, 2017 {corresponding notification No. 12/ 2017 Central Tax (Rate) dated 28.06.2017} :-
(i) 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,
(ii) fellow programme in Management,
(ii
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7 Central Tax (Rate) dated 28.06.2017} are available to the 11Ms. The legal position in such situation has been clarified by Hon'ble Supreme Court in many cases that if there are two or more exemption notifications available to an assessee, the assessee can claim the one that is more beneficial to him. Therefore, from 31st January, 2018 to 31st December, 2018, IIMs can avail exemption either under Sl. No 66 or Sl. No. 67 of the said notification for the eligible programs. In this regard following case laws may be referred-
i. H.C.L. Limited vs Collector of Customs [2001 (130) ELT 405 (SC)] = 2001 (3) TMI 971 – SUPREME COURT OF INDIA
ii. Collector of Central Excise, Baroda vs Indian Petro Chemicals [1997 (92) ELT 13 (SC)] = 1996 (12) TMI 66 – SUPREME COURT OF INDIA
iii. Share Medical Care vs Union of India reported at 2007 (209) ELT 321 (SC) = 2007 (2) TMI 2 – SUPREME COURT OF INDIA
iv. CCE vs Maruthi Foam (P) Ltd. [1996 (85) RLT 157 (Tri.) = 1995 (9) TMI 194 – CEGAT, NEW DELHI
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d to while determining eligibility of various programs conducted by Indian Institutes of Managements for exemption from GST.
Sl.No.
Periods
Programmes offered by Indian Institutes of Management
Whether exempt from GST
(1)
(2)
(3)
(4)
1
1st July, 2017 to 30th January, 2018
i. 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,
ii. fellow programme in Management,
iii. five years integrated programme in Management.
Exempt GST from
i. One- year Post Graduate Programs for Executives,
ii. Any programs other than those mentioned at Sl. No. 67 of G.O.Ms.No.588, Revenue (Commercial Taxes-II), 12th December, 2017 {corresponding notification No. 12/2017 Central Tax (Rate) dated 28.06.2017}.
iii. All short duration executive development programs or need based specially designed programs (less than one year).
N
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(PGP-FABM) 2-year program
3. Fellow Programme in Management (FPM) – 4 to 5-year program
4. Post-Graduate Programme in Management for Executives (PGPX) – 12 months (1 year) full time program
5. ePost-Graduate Programme (ePGP) – 2-year online program.
This list is an example of long duration programs recognised under IIM Act, 2017 offered by IIM Ahmedabad. Similar programs offered by other IIMs of India may kindly be referred by 11Ms and tax authorities during assessment.
Annexure 2: Programmes not exempt under GST Law
The executives / professionals doing short term courses (less than one year) are considered as “participants” of the programmes of the IIM Ahmedabad:
1. Armed Forces Programme
2. Faculty Development Programme
3. Executive Education
a. Customized Executive Programmes
b. Open Enrolment Programme
This list is an example of short duration executive development programs offered by IIM Ahmedabad which are available to participants. Similar programs offered by other
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