Fact:
The Applicant was a private limited company engaged in providing specified educational services in the field of Hotel Management. The applicant was also an approved training partner to the National Skill Development Corporation of the Government of India and had been engaged in providing education to students under the said scheme. He was affiliated to specified universities and provides degree courses to students under related curriculum. While the administration and the curriculum were managed by the applicant, the examination was conducted, and degree is granted by the University.
Issues Involved:
Whether the services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums are exempt from Goods and Services Tax vide entry no. 66 of the Notification No. 12/2017 – Central Tax dated 28.06.2017?
Held:
The Hon’ble AAR of Karnataka vide Advance Ruling No. KAR ADRG 20 OF 2018 dated August 13, 2018 stated that Services provided by educational institution providing degree courses to students under related curriculums are exempt from GST vide entry no. 66 of the Notification No. 12/2017- State Tax (Rate) dated 28.06.2017 and the same reads as Heading No. 9992 Services provided –
a. by an educational institution to its students, faculty and staff;
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 housekeeping services performed in such educational institution;
iv. services relating to admission to, or conduct of examination by, such institution; upto higher secondary:
Provided that nothing contained in entry (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.
Since the “Services provided by an educational institution to its students, faculty and staff’ is exempt from tax under the Central Goods and Services Tax Act and the applicant qualifies as an educational institution in so far as those courses for which affiliation has been obtained from the University in the State of Karnataka and for which University Curriculum is prescribed and the qualifications recognized by the law for the time being in force is given after the conduct of examinations by such University, the applicant is exempted from Goods and Services Tax. Similar notification is also present in the Karnataka Goods and Services Tax Act and hence the exemption is applicable mutatis mutandis under the Karnataka Goods and Services Tax Act also.
Citation: [2018] 97 taxmann.com 320 (AAR-KARNATAKA)