Fact: Indian Institute of Management (“Applicant”) Calcutta is engaged in an Educational Institution funded by the Government of India, engaged, inter alia, in the provision of Educational Services to the students. Apart from providing Educational Services, the applicant also imparts placement and recruitment services and renting out of immovable property prior to December 31, 2018.
Issue Involved: The following questions have been posted before the Authority:
- After the introduction of the IIM Act w.e.f January 31, 2018 (“the IIM Act, 2017”), whether or not the Applicant should be considered an “Educational Institution”?
- If the Applicant is eligible for exemption under Entry No. 66(a) of the Notification No. 12/2017 Central Tax (Rate) dated June 28, 2017 (hereinafter referred to as “the Exemption Notification”), and from which date it should be effective.
- Whether or not the Applicant is eligible to get Refund of the Tax amount already paid by the Applicant?
Held: The Hon’ble AAR of West Bengal vide ORDER NO. 21/WBAAR/2018-19 dated November 02, 2018 stated that the Applicant is an “Educational Institution” within the meaning of sub-clause (ii) of clause 2(y) of the Exemption Notification in terms of the IIM Act. Exemption under Entry no. 66(a) is applicable to such educational institutions as such, especially as the law mentions that the qualifications awarded are to be “recognised by any law for the time being in force”. As Entry No. 67 specifically concerns IIMs, courses mentioned therein, will be eligible for Exemption under the specific entry, even if not mentioned elsewhere under any law for the time being in course. However the applicant is eligible to grant degrees, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions in terms of section 7(f) of the IIM Act. Therefore, the Applicant qualifies as an ‘educational institution’ as defined under clause 2(y) of the Notification No. 12/2017 Central Tax (Rate) dated June 28, 2017, further the Applicant is eligible for benefit for exemption under Entry No. 66(a) of Notification No. 12/2017-CT(Rate) dated June 28, 2017, being an educational institution in terms of clause 2(y) of the said notification. Hence, it can be concluded that both the provisions of the law are available to the Applicant.