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2023 (7) TMI 755 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKAExemption form GST - Education being provided by the applicant - Charitable institution or not - Entry No. 57 of Notification No. 9/2017-Integrated Tax (Rate) dated 28th June 2017 - HELD THAT:- As per entry 1 of the Notification No. 9/2017-Integrated Tax (Rate) dated 28th June 2017, exemption is given only if the following conditions are satisfied.- i. The entity providing services should be registered under section 12AA or 12AB of the Income-tax Act, 1961; ii. And the services provided by that entity should be by way of 'charitable activities'. The Applicant has stated that they are registered under section 12AB of the Income-Tax Act 1961 and they have submitted a copy of order for registration in Form No. 10AC supporting the same. Thus the Applicant has satisfied the first condition. The Applicant has stated that Isha Samskriti' is a gurukul style of residential school where subjects like Sanskrit and English language, Indian classical music (Carnatic and Hindustani), Indian classical dance( Bharatnatyam and other forms), Kalaripayattu, Yoga and basic arithmetic are taught and also extracurricular activities including football, volleyball and treks. They are just teaching these subjects as any other subjects in any normal residential schools but with a difference that the subjects taught here are not the same - Applicant also states that once the student completes 10 years of education (or till they attain 18 years), they can become professional dancers, musicians or yoga/kalaripayat teachers, but does not talk anything about being spiritual. In view of the above, it is observed that the Applicant is not providing any services relating to advancement of religion, spirituality and yoga. Hence, the Applicant has failed to prove that the services provided by them through 'Isha Samskriti', a gurukul style of residential school does not qualify to be 'charitable activities' as defined in the notification and therefore not eligible to claim exemption as per entry 1 of the Notification No. 9/2017-Integrated Tax (Rate) dated 28th June 2017. Whether the Education provided by the applicant is exempt under Entry No. 57 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017? - HELD THAT:- The Applicant states that 'Isha Samskriti' is a residential school with its own curriculum which is in line with Bharatiya tradition of gurukulas. The Applicant is neither providing pre-school education nor education up to higher secondary school and they are following their own curriculum. In view of the above the Applicant is not covered under the definition of “educational institution” as per Notification No. 9/2017-Integrated Tax (Rate) dated 28th June 2017 and hence cannot claim exemption as per entry no. 69 of the same notification.
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