Case Title | Educational Initiative Pvt Ltd |
Court | Gujarat AAAR |
Honorable Judges | Member P Gupta & Member Seema Arora |
Citation | 2021 (9) GSTPanacea 68 HC Gujarat GUJ/GAAAR/APPEAL/2021/29 |
Judgement Date | 07-September-2021 |
Council for Petitioner | Mahendra Kumar |
Council for Respondent | Nitesh Jain |
Section | Entry at Sr. No. 66(b)(iv) of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 |
In Favour of | In Favour of Revenue |
The Gujarat Bench of Member J.P Gupta & Member Seema Arora has held that the subjects for which ASSET can be taken are also fixed by the applicant. All these facts lead to the only conclusion that ASSET is conducted by the applicant. Therefore, it cannot be said that ASSET is an examination conducted by the schools i.e. educational institution. Therefore, exemption from payment of Goods and Services Tax, is not available to ASSET.
FACTS OF THE CASE
M/s. Educational Initiative Private Limited (herein after referred to as “the applicant”) raised the following question for advance ruling in the application for Advance Ruling filed by it before the Gujarat Authority for Advance Ruling (herein after referred to as the ‘GAAR’).
“Whether the educational assessment examination (ASSET) with its variants provided by the applicant to school/educational organization is exempted from payment of GST under Sr. No. 66(b)(iv) of the Not. No. 12/2017-CT (rate) dated 28.06.2017 and entry No. 69(b)(iv) of Not. No. 9/2017-Integrated Tax (Rate) dated 28.06.2017 as well as equivalent SGST Notification
Ans: Yes, exemption is available in view of the above discussion in respect of ASSET services provided to educational institution
Aggrieved by the aforesaid ruling, the Assistant Commissioner, Central Goods and Services Tax, Division – VII, Ahmedabad – South Commissionerate (Jurisdictional Officer) (herein after referred to as the “appellant” or the “Department”) has filed the present appeal.
It has been submitted in the grounds of appeal that the aforesaid Advance Ruling is based on erroneous interpretation that the appellant provides service to an educational institute by way of service related to admission or conduct of examination by, such institute, up to higher secondary.
Thus Authority of Advance Ruling has erroneously granted the benefit of Exemption of GST under Sr. No. – 66(b)(iv) of the Notification No. – 12/2017-Central Tax (Rate) dated 28.06.2017 and Entry No. – 69(b)(iv) of Notification No. – 9/2017-Integarted Tax (Rate) dated 28.06.2017 as well as equivalent SGST Notification. In terms of the entry Sr. No. 66(b)(iv) of the Notification No. – 12/2017-CT (Rate) dated 28.06.2017, as amended vide clause (o) of Notification No. 2/2018-Central Tax (Rate) dated 25.01.2018, Service provided to an educational institution, by way of, services relating to admission to, or conduct of examination by, such institution; up to higher secondary will attract NIL rate of GS
COURT HELD
Considering the facts as recorded, held that It is apparent that in case of ASSET, the Question papers are set and printed by the applicant, timings of ASSET are fixed by the applicant, answers given by the students are assessed by the applicant, based on which result and detailed analysis is given by the applicant.
The subjects for which ASSET can be taken are also fixed by the applicant. All these facts lead to the only conclusion that ASSET is conducted by the applicant. Therefore, it cannot be said that ASSET is an examination conducted by the schools i.e. educational institution.
Therefore, exemption from payment of Goods and Services Tax, as provided under Entry at Sl. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended and corresponding Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended, is not available to ASSET.
ANALYSIS OF THE JUDGEMENT
Bench held that ASSET being held by the applicant cannot be said to be service provided to schools, much less services relating to conduct of examination by such schools. Therefore, exemption from payment of Goods and Services Tax, as provided under Entry at Sl. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended and corresponding Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended, is not available to ASSET.
In view of the foregoing discussion, Bench allow the appeal filed by the department, modify the Advance Ruling No. GUJ/GAAR/R/27/2020 dated 02.07.2020 of the Gujarat Authority for Advance Ruling and hold that ASSET (Assessment of Scholastic Skills through Educational Testing – with its variants)conducted by M/s. Educational Initiative Private Limited is not covered within Entry at Sr. No. 66(b)(iv) of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017, as amended and corresponding Entry of Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended and hence not exempted from payment of Goods and Services Tax
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