TMI Blog2018 (11) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... All educational services provided by an institute, which leads to a qualification/ degree, recognized by the law, for the time being in force, are exempt from payment of GST - both Serial no. 66 and 67 are related to all educational services covered under the same Heading 9992. This leads us to the inescapable conclusion that Serial Number 67 has been carved out specifically and only for the educational services provided by the Indian Institutes of Management. The Indian Institutes of Management have been segregated from all other educational institutes and the educational services provided by them are subject to different treatment in terms of exemptions. Therefore in so far as educational services provided by Indian Institutes of Management are concerned, the provisions contained in Serial no. 67 alone shall apply. Ruling:- There is no exemption from GST on long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru. There is no exemption from GST on supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru. - AAR No. KAR ADRG 25/2018 - - - Dated:- 25-10-2018 - SR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opment (MHRD) Government of India as a premier educational institution and is renowned in India for its management education programs. b) That the applicant was registered as a society with the Registrar of Societies, Mysore State (now Karnataka) vide No. 403/71-72 dated 27-03-1972 and is recognized world over as an institution of higher learning and seat of academic excellence in the field of management. c) The Indian Institute of Management Act, 2017 was passed and it received the assent of the President on 31st December, 2017 with an object to declare certain Institutes of Management (IIMB is one among the schedule annexed to the Act) to be institutions of national importance with a view to empower these institutions to attain global excellence in management, management research and allied areas of knowledge and to provide for certain other matters connected therewith or incidental thereto. d) The Government of India notified the Act in the Gazette of India on 31st January 2018. Now by the enactment of The Indian Institute of Management Act, 2017, IIMB is a body corporate as per Section 4 of the said Act. e) IIMB s vision is to develop leaders and entreprene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... path breaking inside about winning policy and making management strategies 1 year Exempted 2 Post Graduate Programme in Enterprise Management (PGPEM) is a weekend management program, designed for middle and senior level working professionals. Participants learn from World Class faculty, while strengthening their network through collaboration with peers during their on-campus long week-end session 2 years Exempted 3 Post Graduate Programme in Management (EPGP) is an intensive program designed to enhance skills and capabilities essential for responsible position at senior management level. Challenging widespread and globally oriented, the objective of this programme is to produce future leaders who can handle the dynamic corporate environment. 1 year Exempted h) The applicant states that currently certain programmes offered by IIM are exempted as per the Notification No. 12/ 2017 Central tax (Rate) dated 28th June, 2017. As per the applicant the relevant Heading 9992 vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall exercise the following powers and perform the following functions, namely: (f) 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; v. Section 8: Institutes to be open to all irrespective of sex, race, creed, caste or class: Provided further that every such institute shall be a Central Educational Institution for the purposes of the Central Educational Institutions (Reservation in Admission) Act, 2006. vi. Section 9: Institute to be not-for-profit legal entity. (1) Every institute shall be a not-for-profit legal entity and no part of the surplus, if any, in revenue of such institute, after meeting all expenditure in regard to its operations under this Act, shall be invested for any purpose other than for the growth and development of such Institute or vii. Section 11. Power and functions of the Board (d) to establish departments, faculties or schools of studies and initiate programmes or courses of study at the Institute; (f) to grant degrees, diplomas, and other academic distinctions or titles, and to institute an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw for the time being in force is of wide connotation. It is submitted that the word law itself is very wide in its scope and would include within its ambit not only statutes (whether taxing statute or otherwise) but an order made by the Government, resolution of Government, Government schemes, notification, rules and regulations, customs, usage, etc., which have the force of law. xii. Meaning of the term Curriculum Curriculum refers to the means and materials with which students will interact for the purpose of achieving identified educational outcomes. xiii. The applicant states that in his case the law means The Indian Institute of Management Act, 2017. Thus, as per the provisions of the Indian Institute of Management Act, 2017 the long duration programmes discussed above are approved curriculum-based programmes offered by IIMB. xiv. Therefore, in the light of the above, all programmes offered by IIMB including executive programmes are covered under education as a part of a curriculum for obtaining a qualification recognized by the Indian Institute of Management Act, 2017 as reproduced above and thus will be covered under Sl. No. 66 of Notification No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... force in the light of the enactment of Indian Institute of Management Act, 2017. (b) To exempt supply of online educational journals or periodicals to IIMB from Reverse Charge liability of GST under Sl No. 66 of Notification No, 12/ 2017 Central Tax (Rate) dated 28th June 2017 as amended by Notification No.2/2018 dated 25th January 2018 considering the same as education provided as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of the enactment of Indian Institute of Management Act, 2017. 4. The applicant has also submitted the extract from the minutes of 164th Board Meeting held on 17th March 2018. 3. Award of Diplomas, Certificates and Distinctions to Graduands The Director referred to the following two Resolutions that had been circulated to the Board Members on 16th March 2018, which was approved by 11 members. Resolution-1: With the coming into effect of the Indian Institutes of Management Act, 2017 and also on the approval of the Faculty body Indian Institute of Management, Bangalore, now reconstituted as the Academic Council, the Board of Governors of Indian Institute of Managemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r house-keeping performed in such educational institution. (iv) Services relating to admission to, or conduct of examination by, such institution; (v) Supply of online educational journals or periodicals: Provided that nothing contained in sub-items (i), (ii) and (iii) of item (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. Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of, - (i) Pre-school education and education up to higher secondary school or equivalent; or (ii) Education as a part of an approved vocational education course. 4.2 The two competing entries of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 relevant to the issue are Entry no. 66 and 67. Both these entries relate to services falling under the Heading 9992. The Heading 9992 appears at serial number 581 in the Annexure: Scheme of Classification of Services attached to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. There are six Groups of various Edu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Serial number 66 for the rest of the educational programmes. In conclusion we are of the opinion that when Notification number 12/2017 provides for a specific entry for the Indian Institutes of Management at serial no. 67, the provisions of serial number 66 shall not apply to them. 4.5 Similarly, the second question also relates to the applicability of entry no. 66 in the presence of specific entry no. 67. Therefore the same view holds good for the second question also. Consequently the answer for both the questions posed by the applicant is negative . 5. In view of the foregoing, we rule as follows R U L I N G a) In respect of question (a), Whether the long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru other than specifically mentioned in Sl.No.67 of Notification No.12/ 2017 Central Tax (Rate) dated 28th June 2017 as amended by Notification No.2 /2018 dated 25th January 2018 are exempted from the GST output liability on education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of enactment of the Indian Institute of Manag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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