TMI Blog2019 (9) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... t. For example, even the entrance examinations conducted by an Educational Institution will not be exempt, if there is no specific clause for its exemption - Similarly, supply of services pertaining to transportation of students, faculty and staff is exempt only because of eligibility of an Educational Institution for exemption for educational services for pre-school education and education up to higher secondary school or equivalent - supply of such services to an Educational Institution for any other purpose, say for education beyond higher secondary level, shall not be exempt. If not exempted then what would be the appropriate category of the service and the appropriate Tax Rate? - HELD THAT:- The authority is of opinion that various services provided for organizing an educational conference / gathering of students and staff of other Schools, shall be liable to tax at the rate applicable to the respective services. For example, the catering services shall be liable to tax @ 5% (2.5% + 2.5%) without eligibility for Input tax credit. Similarly, the services of security or cleaning or house-keeping services shall be liable to tax @ 18%. What would be the Place of Supply for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and registered under M.P. Societies Act 1971 bearing registration No. 10981 and is also registered as a Charitable institution under Section 12A of the Income Tax Act' 1961. 3.2 Emerald Heights School Samiti owns and runs The Emerald Heights International School (hereinafter referred as the School or the Applicant ) and according to the applicant the Society is not engaged in any other activity and does not derive any other income other than from the School. 3.3 The School is an Educational Institution and inter-alia, engaged in the providing world class education to its students upto Higher Secondary only. The School is situated in Indore and affiliated with the Central Board of Secondary Education (CBSE) . 3.4 The school is not registered with the Goods Service Tax Department as it is providing education services. 3.5 The school is affiliated and associated with various National and International Organizations which are mainly active to promote education and sports world wide. Amongst various organizations the school is also member school of an association namely Round Square , (hereinafter referred as Round Square or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming the above functions to cover the expenses of the conference would flow from the Round Square member schools (many of such member schools are based outside India) in the form of fee along with the list of individual student and staff attendees to the Applicant. According to the applicant no surplus is expected to be generated from the Conference. Surplus, if any, shall be transferred back to the Association. 4. QUESTIONS RAISED BEFORE THE AUTHORITHY:- The following questions have been posted before the Authority in the application:- a. Will the consideration received by the school from the participant school(s) for participation of their students and staff in the conference would be exempted under entry No. 66 or entry No. 1 or entry No. 80 or any other entry of the Notification No. 12/2017 - Central Tax (Rate) or will be chargeable to GST under CGST Act, 2017 MP GST Act, 2017 or IGST Act, 2017? b. If not exempted then what would be the appropriate category of the service and the appropriate Tax Rate? c. What would be the Place of Supply for such services? d. Whether exemption provided to service p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; (ii) As per the above exemption entry, the services provided by any educational institution to its students, faculty and staff are exempt from GST. Also, services provided to an educational institution for transportation of students, catering and some other specified services are exempt from GST. The Applicant further stated that in the present context, there is no doubt in the fact that the applicant is an educational institution for the purposes of the above exemption entry as they are providing education upto Senior Secondary level to the students. The Applicant further submitted that being an educational institution, the applicant is entitled to the exemptions from the GST for its functions covered under entry 66 of the Notification 12/2017-Central Tax (Rate). One of such functions is - provision of services to its students, faculty and staff. In the present case, the applicant would be organizing a conference for the students over a period of six-seven days during the time period from 16ltl September 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... students over a period of six-seven days during the time period from 16th September 2019 to 1311 October 2019. The attendees of the conference would include students and teachers of the applicant school as well as the students and teachers from different schools who are member of the 'Round Square'. The objective of the conference is to bring to India students and teachers from up to 200 schools in 50 countries around the world - the majority of them registered charities -to allow for the students' leadership and creativity while ensuring the individual development of every pupil including academic, Physical, cultural and spiritual aspects in a global perspective' and also to develop their cultural understanding, debate topical issues that sensitise them to the community they are visiting, forge friendships, carry out social service and develop mind, body and soul through a range of culturally immersive experiences including local expeditions, sporting activities, and mindful practices, most especially a daily programme of yoga. (iii) Accordingly, the services under the agreement are practically the exempted services to be provided by I2AA registered educa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing registered u/s 12AA of the Income tax act merit exemption under the entry 80 to the Notification No. 12/2017-CT(Rate). D. As for the services to be procured by the Applicant for the purposes of the conference, the services by way of transportation to the students, faculty and staff; catering, and security or cleaning or house-keeping are exempt under entry 66 of the Notification No. 12/2017-Central Tax (Rate), as the services would be received by the applicant who is an educational institution. Accordingly, any such services received by the Applicant for the purposes of the conference would merit exemption from GST. E. The participants in the conference would be from within India as well as from outside India. Therefore, the two-respective provisions for ascertaining the place of supply in the present case would be clause (5) of section 13of the Integrated Goods Services Tax Act, 2017and clause (6) of Section 12 of the Integrated Goods Services Tax Act, 2017. i. Clause (5) of section 13 which applies in case of attendees from international schools (cross-border) The place of supply of services supplied by way of admission to, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o transportation of students, faculty and staff is exempt only because of eligibility of an Educational Institution for exemption for educational services for pre-school education and education up to higher secondary school or equivalent. 7.5 supply of such services to an Educational Institution for any other purpose, say for education beyond higher secondary level, shall not be exempt. 7.6 Now let us see the exemption to such services in different entries of Notification No. 12/2017-Central Tax (Rate), dt. 28.6.17. Entry 1 is pertaining to Services by an entity registered u/s 12AA of the Income-tax Act, 1961 by way of charitable activities. This clause is not applicable to the proposed activities to be carried on by the applicant, as the School is not an entity registered u/s 12AA of I.T. Act for charitable activities. Clause (a) of Entry 80 is not applicable to the proposed activities to be carried on by the applicant, as the said clause is applicable to services by way of training or coaching in recreational activities relating to arts or culture. The activities of holding educational conference / gathering of of students, faculty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciple will apply for deciding the eligibility for exemption to security or cleaning or house-keeping services performed in such educational institution. If such services are for security or cleaning or house-keeping of the premises of the educational institution, then the same shall be exempt, otherwise the same shall not be exempt from tax. If the educational conference / gathering of students and staff of other Schools is at some other place, then the same shall not be exempt from tax. 7.8. The second question raised by the applicant reads as follow - If not exempted then what would be the appropriate category of the service and the appropriate Tax Rate ? 7.9 The authority is of opinion that various services provided for organizing an educational conference / gathering of students and staff of other Schools, shall be liable to tax at the rate applicable to the respective services. For example, the catering services shall be liable to tax @ 5% (2.5% + 2.5%) without eligibility for Input tax credit. Similarly, the services of security or cleaning or house-keeping services shall be liable to tax @ 18%. 7.9 The third question raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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