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2023 (7) TMI 809 - AAR - GSTScope of supply - activities or services being provided by the University to its affiliated colleges and students - services rendered by a Government authority by way of any activity in relation to the functions entrusted to a Panchayat and Municipality - exemption under Entries 4 and 5 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and SRO 371/2017 dated 30.07.2017. Whether the services provided by the applicant to its affiliated colleges and students constitute a supply within the meaning and scope of “supply” as defined in Section 7 of the CGST Act, 2017? - HELD THAT:- The definition of “business” under the GST Act is an inclusive definition and is so wide in its scope and amplitude that it not only covers all activities or transactions that were subjected to various taxes that were subsumed in GST but also functions undertaken by Central Government, State Government or Local Authority as such public authority. In the case of DAYAL SINGH & ORS. VERSUS U.O.I. & ORS. [2003 (1) TMI 712 - SUPREME COURT], the Hon'ble Supreme Court held that; “where the language of the statute is clear and unambiguous, nothing can be read into it by implication and the intention of the legislature has to be gathered from the language used.” In view of the plain and unambiguous definition of the term “business” in the CGST Act there is no need for recourse to construction or interpretation and the plain meaning of the statue has to be applied - Therefore, the services provided by the applicant to its affiliated colleges are covered by the definition of “business” in the CGST Act and consequently constitute a supply within the meaning and scope of “supply” as defined in Section 7 of the CGST Act, 2017. Whether the supply is exempted under the entry at SI Nos. 4 and 5 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017? - HELD THAT:- The entry Nos. 17, 18 and 19 of Eleventh Schedule of the Constitution covers all types of education and education is also covered under entry No. 13 of the Twelfth Schedule of the Constitution. Therefore, education is a function entrusted to both Panchayath as well as Municipality under Article 243G and 243W respectively of the Constitution. University is a key institution of social change and development and the applicant being a Public University established under The Calicut University Act, 1975 an Act passed by the Legislature of the State of Kerala falls under the definition of “Governmental authority” in Para 2 (zf) of Notification No. 12/2017 CT (Rate) dated 28.06.2017. Therefore, the services provided by the applicant to its affiliated colleges are services by “Governmental authority” by way of activity in relation to function entrusted to a Panchayath and Municipality under Article 243G and 243 W of the Constitution and accordingly exempted from payment of GST as per entries at Si Nos. 4 and 5 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
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