9911796707
TMI Blog2019 (10) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... n FORM GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: Whether the input tax credit is available when the online educational journals and periodicals are supplied to the Educational Institutions other than to preschool and higher secondary school or equivalent, which is exempt by virtue of Notification No.2/2018 - Central Tax (Rate) dated 25.01.2018? 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that they are a company engaged in the supply of online journals. They import various onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... secondary is exempt from the payment of IGST. However, when the online journal is imported and sold to all other educational institutions such as pre-school, higher secondary educational institution, vocational institution and any other person, it is taxable. Therefore, the exemption given in the notification when sold to an educational institution is a conditional exemption. 4.1 As per section 17(1) and 17(2) read with Rule 42, the amount of input tax directly attributable to the supply of exempt supply is not an eligible input tax credit. Exempt supply is defined in section 2(47) as "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) read with Rule 42 of the CGST Rules is not applicable and hence as per the understanding of the applicant, the input tax credit thereon is available to the applicant. 4.4 The applicant states that if the input tax credit is not allowed, then the purpose of giving exemption to an educational institution other than pre-school and higher secondary institution is not satisfied. That means, if the supplier has to reverse the credit then cost of purchase of such online subscriptions to the institutions will go up. 4.5 The applicant states that under the erstwhile CENVAT Credit Rules also, if input tax credits were used exclusively in the manufacture of exempted goods or exempted services, credits for such were not allowed. However, if the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able on the platform after reading the catalogue of the article. The articles are catalogued and made available. Some of the articles are available for full view while some are only available in the catalogued form and the subscriber needs to subscribe the individual journal sites to gain access to the full article. The applicant is collecting the subscription fee which is nothing but the fee charged to gain access to the data available in the database and to download the articles or information. This is an online information and database access and retrieval service provided by the applicant to its subscriber and not a sale or supply of online journals. 5.2 In view of the above, the transaction is not covered under sub-item (v) of item (b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
