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TMI Blog2018 (11) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Management Act, 2017? b) Whether supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru is exempted 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 being 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 enactment of the Indian Institute of Management Act, 2017? 3. The applicant furnishes some facts relevant to the stated activity: a) The applicant states that they are an educational ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Management (FPM) is a full time doctoral programme and is committed to train individual who will excel in their area of research through publication of high quality work of international standard 5 years Exempted 2 Post Graduate Programme in Management (PGP) is designed to equip student with skill and capabilities that will enable them to reach responsible global position in management. The PGP revolves around the principle that world-class business leaders are not mass produced; they are nurtured and developed in a practical application-oriented, user friendly environment. This is a flagship MBA degree equivalent programme where students are admitted through CAT 2 years Exempted g) The applicant has also provided a table containing the programmes which they feel are exempted post enactment of IIM Act 2017 Sl.No. Programmes Offered Period Taxability under GST post enactment of IIM Act 2017 1 Post Graduate Programme in Public Policy and Management (PGPPM) catalyzed by the Government of India and United Nations Development Program, the PGPPM is packed with path breaking inside about winning policy and making management strategies 1 year Exempted 2 Post Graduat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... importance. "Whereas the objects of the Institutes mentioned in the Schedule are such as to make them institutions of national importance, it is hereby declared that each such institute is an institution of national importance." ii. Section 3 (h) - "Institute" means any Institute mentioned in column (5) of the Schedule; iii. Section 4: Incorporation of Institutes (1) On and from the commencement of this Act. Every existing Institute shall be a body corporate by the same name as mentioned in column (5) of the Schedule. iv. Section 7 : Powers and functions of Institute Subject to the provisions of this Act, every institute shall 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. Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitute of Management, Bangalore, A society registered under the Mysore Societies Registration Act, 1960 (17 of 1960) Bengaluru Indian Institute of Management, Bangalore xi. Meaning of the term "any law for the time being in force" Further the expression "any law 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 inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om 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 Management, Bangalore, hereby approve the modifications made to the Ordinances. Resolution -2: With the coming into effect of the Indian Institutes of Management Act, 2017 and also on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 Education Services under the Heading 9992 covering all services from pre-primary education services to specialized education services. 4.3 Serial No. 66 of the said Notification No. 12/2017 is a general entry in relation to exemption of services provided by an educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Management Act, 2017?", the answer is "No". b) In respect of question (b), "Whether supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru is exempted from reverse charge liability of GST under Sl. No.66 of Notification No.12 / 2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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