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2020 (9) TMI 1236 - AAAR - GSTClassification of supply - supply of service of education or not - curriculum prescribed by the statutory authorities/ government to the students of the applicant for obtaining qualifications/ certificates of CA-Foundation CA-Inter CA-Final MA (ICWA)-Foundation CMA-Inter CMA-Final and Intermediate duly recognized by the respective statutory authorities/ government are exempted under Notification No.12/2017-CT (Rate) dt.28.06.2017 (entry no.66 (a)) as amended? - charges collected for providing accommodation to the students undergoing the courses are exempt from GST as provided under Notification No.12/2017-CT (Rate) dt.28.06.2017 (entry no.14) as amended read with Circular No.32/06/2018-GST dt.12.02.2018 since the amount charged from the students by the hostel run by the applicant is less than Rs. 1000/- per day? - charges collected by the applicant for catering service by supplying food to the students undergoing the above courses are exempted from GST as provided under Notification No.12/2017-CT (Rate) dt.28.06.2017 (entry no.66(a)) as amended? HELD THAT - The Board of Studies (BOS in short) is a wing created by the Institute of Chartered Accountants of India (ICAI in short). The BOS is imparting theoretical education for CA through online courses Journals etc. to the enrolled candidates. Similarly the ICWAI is conducting classes through the counselors appointed on Honorarium as well as computer soft skills to the registered candidates. Basing on the discussions the findings are 1. The ICAI or ICMAI does not affiliate nor recognize any other education institutions for the purpose of Theoretical education Practical training. The BOS /Counselor is imparting Theoretical education through online lectures Practical training to the registered candidates. 2. The registered candidate is eligible to appear for the examinations conducted by the said Institutes at various level of entry points. 3. Age has no bar to pursue the course. 4. There is no prescribed duration of Course to complete like intermediate Graduation/Post Graduation or technical education like B.Tech B.E. ETC. 5. There are no different streams like Regular or Private Students. 6. Regular Attendance is not necessary in any college or Institution. The registered/enrolled candidate need not pay any additional fee in lieu of attendance for appearing examinations in Intermediate graduation etc. The Supreme Court in the case of NIDHI KAIM VERSUS STATE OF MADHYA PRADESH OTHERS ETC. 2016 (5) TMI 1419 - SUPREME COURT has held that for the proposition that the examination is considered as a common tool around which the entire education system revolves . As indicated herein the institution is being run for a specific purpose to the extent to cover the topics in the subjects of the prescribed Syllabus for CA/CMA namely to prepare the students for appearing in various level of theoretical examinations for the said qualification but it itself appears to be not authorized there for nor can it be said to be sufficient to complete the Curriculum by the candidates to qualify as CA/CMA - If such a wide meaning is given to the word education so as to bring within its purview the coaching institutions it will defeat the Purpose of the Act. Added to this the Chartered Accountants Act as well as the Cost and Works Accountants Act both clearly do not recognize the education imparted by Universities or affiliated bodies towards the award of any degree diploma or certificate as given by such Institutes. In fact such Universities and Bodies are not even permitted to use any name or nomenclature which is in any way similar to that of the said Institutes - Section 15 A of the Chartered Accountants Act 1949 and Section 15 B of the Cost and Works Accountants Act 1959 regarding imparting education by Universities and other bodies were incorporated in the respective Acts in the year 2006. The education imparted by the Appellate would not lead to the obtaining a qualification recognised by the said Institutes. Needless to say that the Appellant is not an affiliate of the said Institutes and hence would only be referred to as a coaching institute and not an educational institution - the Acts Rules and Regulations that govern the said two Institutions ICAI and ICWAI lays down an elaborate system of education practical training special courses and multi-level examination system that finally leads to the qualification under the said Acts. As such the candidate has to even complete the Integrated course of Information Technology i.e. ICITSS and AICITSS and practical training and clear all the Examinations conducted by the BOS. The Appellant cannot claim the benefit of exemption as an Educational Institution providing Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force under the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
Issues Involved:
1. Whether the appellant qualifies as an "educational institution" under Notification No. 12/2017-CT (Rate) dated 28.06.2017. 2. Whether the charges collected for providing accommodation to students are exempt from GST. 3. Whether the charges collected for catering services provided to students are exempt from GST. Issue-wise Detailed Analysis: 1. Qualification as an Educational Institution: The appellant, a coaching institute, claimed exemption under Notification No. 12/2017-CT (Rate) dated 28.06.2017, asserting that it provides education as part of a curriculum for obtaining qualifications recognized by law. The Authority for Advance Ruling (AAR) denied this exemption, stating that the appellant does not qualify as an educational institution because: - The appellant is not recognized or affiliated with ICAI or ICWAI. - The coaching provided is not mandatory for students to appear for examinations. - The coaching does not lead directly to the grant of any certificate recognized by law. - The appellant's institution does not meet the definition of "educational institution" as it does not provide services by way of education as part of a curriculum for obtaining a qualification recognized by law. The appellant argued that the AAR's order was not a speaking order and was passed with a revenue bias. The appellant contended that the definition of "educational institution" should be interpreted liberally and that the coaching provided is part of the curriculum prescribed by statutory bodies. The appellant cited various court decisions to support their claim that the term "education" has a wide import and includes systematic instruction and training. The appellate authority upheld the AAR's decision, emphasizing that the appellant's coaching institute does not fulfill the criteria of an educational institution under the GST law. The authority noted that the ICAI and ICWAI do not recognize or affiliate with any other institutions for theoretical education. The education provided by the appellant does not lead directly to a qualification recognized by law, and the institution is not essential for completing the CA/CMA courses. 2. Exemption for Accommodation Charges: The appellant sought exemption for accommodation charges under Notification No. 12/2017-CT (Rate) dated 28.06.2017, arguing that the charges collected from students are less than Rs. 1000 per day. The AAR denied this exemption, stating that since the appellant is not recognized as an educational institution, the exemption for accommodation charges does not apply. The appellate authority upheld the AAR's decision, reiterating that the appellant does not qualify as an educational institution and, therefore, is not eligible for the exemption on accommodation charges. 3. Exemption for Catering Services: The appellant also sought exemption for catering services provided to students under the same notification. The AAR denied this exemption, stating that the appellant is not an educational institution and, therefore, the exemption for catering services does not apply. The appellate authority upheld the AAR's decision, maintaining that the appellant does not meet the criteria of an educational institution and is not eligible for the exemption on catering services. Conclusion: The appellate authority concluded that the appellant does not qualify as an educational institution under Notification No. 12/2017-CT (Rate) dated 28.06.2017. Consequently, the exemptions for accommodation charges and catering services provided to students do not apply. The authority upheld the AAR's ruling in its entirety.
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