In Re: M\/s. Emerge Vocational Skills Private Ltd.,
GST
2018 (9) TMI 1041 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (17) G. S. T. L. 494 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 13-8-2018
AAR No. KAR ADRG 20\/2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER
\nRepresented by: Sri Abhi Parakh, Advocate
\nORDER 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 AND SECTION 20 OF THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
\n1. M\/s Emerge Vocational Skills Private Limited, (called as the 'Applicant' hereinafter), having its registered office at 30, Galaxy, 3rd Floor, 1st Main, 3rd Phase, J.P.Nagar, Bengaluru 560078, having GSTIN number 29AADCE4523A1Z3, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 read with Rule 104 of CGS<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Corporation of the Government of India and has been engaged in providing education to students under the said scheme; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n olled with the colleges\/ institutions affiliated to the University = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ding services by way of, – = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n lves examination being conducted by the University and all successful candidates are granted University degrees. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the University and qualifications which are recognized by law would be issued to the successful candidates. Hence the institution would qualify as an “educational institution” for the purposes of such courses only which lead to a qualification recognised by any law for the time being in force. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nd Services Tax Act and hence the exemption is applicable mutatis mutandis under the Karnataka Goods and Services Tax Act also. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Emerge Vocational Skills Private Ltd.,GST2018 (9) TMI 1041 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (17) G. S. T. L. 494 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AARDated:- 13-8-2018AAR No. KAR ADRG 20\/2018 GSTSRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri Abhi Parakh, … Continue reading “In Re: M\/s. Emerge Vocational Skills Private Ltd.,”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13786","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13786"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13786\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n ii. The applicant is affiliated to specified universities and provides degree courses to students under related curriculum. While the administration and the curriculum is managed by the applicant, the examination is conducted and degree is granted by the University (“university curriculum”).
\nb. The Government of India has with effect from 1st July 2017, introduced a unified GST to replace the various indirect tax levies (i.e. Central Excise, VAT, Service Tax, Entry Tax, etc.) The Government has exempted certain services from levy of GST and has issued a Notification No. 12\/ 2017 -Central Tax (Rate) dated 28th June 2017 to that effect.
\nc. Entry No. 66 of the said notification exempts services provided by education institutions to its students, faculty and staff. The said notification also defines an “educational institution” as follows: “Educational institution” mean<\/p>\n
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\ne. Section 59 of the Karnataka Universities Act 2000 empowers the University, to be set up by the Government, to affiliate colleges to run education curriculum. Further section 66 of the said Act empowers the University to affiliate or recognize other institutions other than colleges, within its jurisdiction to provide education in the State. Accordingly, while the University set up by the Government grants degree \/ qualification, the education is delivered by institutions like colleges etc. under an approval or affiliation by the University.
\nf. The applicant states that he is already affiliated to the following universities:
\n i. Bharathiyar University, Tamil Nadu
\n ii. Osmania University, Telangana
\n iii. Acharya Nagarjuna University, Andhra Pradesh
\nThe applicant proposes to obtain an affiliation with a university in the State of Karnataka and shall thereafter be engaged in provision of education in affiliation wit<\/p>\n
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\n (i) Pre-school education and education up to higher secondary school or equivalent;
\n (ii) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
\n (iii) Education as a part of an approved vocational education course.
\ni. The essence of the above exemption is that the institution in question must qualify as an “educational institution”. Once this condition is fulfilled, the services provided by such institution to its students and faculty shall by default be eligible for the above exemption.
\nj. The National Academy of Customs, Indirect Taxes and Narcotics has issued a write up on Educational Services from which the following is extracted:
\n “What is the meaning of 'education as a part of curriculum for obtaining a qualification recognized by law?
\n It means that only such educational services are in the negative list as are related to delivery of education as 'a part' of the curriculum that has <\/p>\n
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\nl. The applicant submits, in view of the above, university curriculum offered by the applicant may qualify as services provided by educational institution to its students and accordingly exempt from goods and services tax.
\n4. FINDINGS & DISCUSSION:
\n(a) The contention of the applicant is examined. The applicant has submitted that he proposes to obtain an affiliation with a University in the State of Karnataka and shall thereafter be engaged in provision of education in affiliation with the said university in the State of Karnataka.
\n(b) The applicant also undertakes that the courses would be conducted as per the curriculum of the university concerned in affiliation with them and the examination would be conducted by the University and degrees shall be granted to the successful candidates of the institution.
\n(c) Notification No. 12\/ 2017 – Central Tax (Rate) dated 28.06.20<\/p>\n
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\n(d) Entry No. 66 of the Notification No. 12\/ 2017 Central Tax (Rate) dated 28.06.2017 gives the applicable rate of tax on services and the same reads as under
\nSl.No.
\nChapter, Section, Heading, Group or Service Code (Tariff)
\nDescription of Services
\nRate (per ent.)
\nCondition
\n66
\nHeading 9992
\nServices provided –
\n(a) by an educational institution to its students, faculty and staff;
\n(b) to an educational institution, by way of,-
\n (i) transportation of students, faculty and staff;
\n (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
\n (iii) security or cleaning or housekeeping services performed in such educ<\/p>\n
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\n5. In view of the foregoing, we rule as follows
\nRULING
\na. The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums to its students exempt from Central Goods and Services Tax vide entry no. 66 of the Notification No. 12\/ 2017 – Central Tax (Rate) dated 28.06.2017 subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.
\nb. The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums to its students exempt from Karnataka Goods and Services Tax vide entry no. 66 of the Notification No. 12\/ 2017 – State Tax (Rate) dated 28.06.2017 subject to the condition that suc<\/p>\n
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