TMI Blog2020 (7) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... r Final) does Not fall under clause (i) of the above said definition, as the same is Not related to pre-school education and education up to higher secondary school or equivalent. Similarly, the service provided by the applicant also does Not fall under clause (iii), as the same is Not related to imparting of education as a part of an approved vocational education course (which is generally a Non-academic course and a specific trade / vocation oriented course) - In the instant case, the coaching or training provided by the applicant is for preparing the students for wTiting/appearing CA(Inter Final) and ICWA (Inter Final) Exams conducted by ICAI/ ICWAI. The said coaching or training per se does Not lead to grant of a certificate or diploma or degree or qualification which is recognized by any law. It only aims at giving a better preparation to the students and improves their chances in the examination. It is similar to any other coaching or training given in respect of competitive / entrance examinations such as IIT, EAMCET etc. It is pertinent to mention that the coaching or training as imparted by the applicant is neither mandatory Nor sine qua Non to the students appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Goods Services Tax Act, 2017 and AP Goods Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Master Minds, Brodipet, Guntur (hereinafter referred to as applicant ), Not registered under the Goods Services Tax Act, 2017. 2. The provisions of the CGST Act and APGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE: 3.1 The applicant herein is a proprietary firm and a leading educational institution providing coaching to students for Chartered Accountancy certificate ( CA ); Cost and Works Accountancy Certificate ( ICWA ) and Intermediate Certificate. The coaching provided by the applicant enables the students to appear for the examinations conducted by the respective statutory bodies i.e., Intermediate (Higher Secondary Education), Chartered Accountan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details of all the students to whom the coaching is provided and since the applicant is collected more fee than that prescribed by the Board of Intermediate Education. 3.4. The above orders were accepted by the committee of Chief Commissioners of the department and the service tax department had Not filed any appeal against the said orders. However, the applicant filed appeals before the Tribunal against the confirmation of demands on certain courses and the same are pending before it. The applicant was even granted refund of the service tax paid on such services by the jurisdictional Assistant Commissioner and the department had Not filed any appeal against such refund order. 3.5. The latest show cause Notice was issued to the applicant for the period from 1.4.2012 to 30.6.2017 demanding service tax on the coaching provided by the applicant for the courses of CA and ICWA but the demand was dropped by the Commissioner of Central Tax, Guntur both on merits and limitation. 3.6. With the introduction of the GST, the applicant desires to kNow whether the same exemption provided under the Finance Act, 1994 is applicable to him under the GST Law also since identical exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed occasional educational course. 4.6. Similar exemption granted under negative tax regime of service tax is extended to the educational services in GST regime also. Entry No.66 of Notification No.12/2017-Central Tax (Rate) dt.28.06.2017 as amended by Notification No.2/2018-Central Tax (Rate) dated 25.01.2018, extracted below specifies the following education services as exempted from GST. Services provided - (a) By an educational institution to its students, faculty, and staff : (b) To an educational institution, by way of, - (i) Transportation of students, faculty and staff; (ii) Catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) Security or cleaning or house-keeping services performed in such educational institution; (iv) Services relating to admission to, or conduct of examination by, such institution; upto higher secondary: Provided that Nothing contained in entry (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. 4.7. The te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a profession. 3. a degree, level, or kind of schooling: a university education. 4. the result produced by instruction, training, or study: to show one s education. 5. the science or art of teaching; pedagogics. Curriculum means: As per Dictionary.Com: 1. the aggregate of courses of study given in a school, college, university, etc.: 2. the regular or a particular course of study in a school, college, et c. As per Oxford Dictionary: -the subjects comprising a course of study in a school or college. As per Cambridge Dictionaries online: -the subjects studied in a school, college, etc. and what -each subject includes the school curriculum 4.12. Therefore, the provision education as a part of curriculum.... can be understood as imparting kNowledge (education) through a systematic syllabus in an institution/ college/ school . The education shall be useful for obtaining a qualification recognized by law to get exemption under the provisions of Section 66D(1)(ii) of the Act and subsequent to April 2016 under the exemption Notification and under GST from 1.7.2017. What is to be seen here is whether, the applicant is an inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make up deficiencies which are left there. [(See The State of Gujarat and Ors. v. Dilipbhai Nathjibhai Patel and Anr. (JT 1998 (2) SC 253)] = 1998 (3) TMI 677 - SUPREME COURT . It is contrary to all rules of construction to read words into an Act unless it is absolutely necessary to do so. [(See Stock v. Frank Jones (Tiptan) Ltd. (1978 1 All ER 948 (HL)]. Rules of interpretation do Not permit Courts to do so, unless the provision as it stands is meaningless or of doubtful meaning. Courts are Not entitled to read words into an Act of Parliament unless clear reason for it is to be found within the four corners of the Act itself (Per Lord Loreburn L.C. in Vickers Sons and Maxim Ltd. v. Evans (1910) AC 44S (HL), quoted in Jamma Masjid, Mercara v. Kodimaniandra Deviah and Ors. (AIR 1962 SC 847) = 1962 (1) TMI 63 - SUPREME COURT . 4.13. Therefore, the applicant satisfied the first limb of the definition of the term educational institution to avail the exemption, the institution shall provide education as part of its coaching provided to the students and therefore, he is eligible for the exemption. 4.14. As regards to the issue whether the education is imparted as part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be awarded Chartered Accountancy Certificate. A person who qualified bachelor s degree in Commerce EcoNomics with certain percentage shall eligible to register for Level Two of CA Course i.e., intermediate and the students who qualified in the Intermediate level of examination of the Institute of Cost Accountants of India and The Institute of Company Secretaries of India will be exempted from Foundation Course and shall eligible to enroll directly for Intermediate [Level Two]. (e) Coaching for Cost Management Accountancy Course [CMA] conducted by the Institute of the Institute of Cost and Works Accounts of India [ICWAI], a statutory body established by an Act of Parliament, viz. Cost And Works Accountants Act, 1959 for regulating the profession of Cost Accountancy in India. With effect from 01.08.2016, the institute has implemented the new scheme of education (new syllabus) for Chartered Accountancy Course, which consists of three levels i.e. (a) Foundation Course (Level One) (b) Intermediate Course (Level Two) (c) Final Course (Level Three) (f) The ICMAI Institute designs the curriculum of syllabus for the three level of CMA course and provides st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that they do Not lead to grant of certificates but only qualifications. Under negative list of service tax regime and GST regime, there is No such stipulation of granting of a certificate but obtaining a qualification is sufficient to claim the exemption. 4.18. Further, prospectus of CA Course issued by ICAI and CMA Course issued by ICWAI, clearly specifies that Foundation is Level-i Course out of three levels of CA/CMA Courses, and it has specified syllabus and part of curriculum prescribed by these institutes and the students of intermediate education who studied the four months Foundation Course and qualified in the examinations conducted by the institutes will only be eligible for Second Level of CA/CMA otherwise they should have had a prescribed degree certificate with the specified subjects secured a minimum of 55% marks for commerce degree and 60% for Non-commerce degree, issued by recognized university. Hence, it is very much clear that Foundation Course is a qualification recognized under law and issued by the Institute which established under an Act of Parliament. Further, the student who wishes to study CA/CMA courses shall have to register with respective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to Chartered Accountants Act 1949, Chartered Accountant means a person w ho is a member of the Institute. 4.22. At present ICWA course has been renamed as CMA which stands for Cost Management Accounting. ICWA Foundation is the first stage of CMA and to apply for this course, students must have passed other equivalent from any recognized Institution or Board and the candidate must have completed the age of 17 years. The duration of this course is four months i.e., a student must wait for a minimum of 6 months to write the CMA Foundation exam after registering with ICWAI. Every student who has passed Senior Secondary School Examination (10+2) and Foundation Course of the Institute of Cost Accountants of India/ Graduation in any discipline other than Fine Arts/ Foundation (Entry Level) Part I Examination of CAT of the Institute/ Foundation (Entry Level) Part I Examination and Competency Level Part II Examination of CAT of the Institute/ Passed Foundation of ICSI/Intermediate of ICAI is eligible to apply to ICMAI for CMA Inter. It is an intermediate stage to cross for obtaining the qualification/ certificate of CMA and is a continuing education for the students. A Student wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption Notification under GST, if the coaching is provided by an educational institution to its students for obtaining a qualification it is exempted. The phrase for obtaining a qualification is unambiguous. The student takes the coaching for obtaining a qualification by himself. The institution has No role except coaching the students to enable him to obtain the qualification. 4.28. In the past, the department contended that the exemption is to be provided only if the educational institution is (a) affiliated to ICAI and ICWAI (b) has an authorization or accreditation or affiliation or MOU or any partnership with these institutes (c) having a role in the entire scheme of issue of CA/CMA certificates. But this argument was Not accepted even by the Commissioner of GST and Central Tax, Guntur in his Original Order No.22/2013-ST dt.29.3.2013 as explained above. 4.29. As already explained above, it is a settled legal position that words in a Notification or statute shall be read as they are and No word shall be added or deleted for reading the statute. In the case of Gujarat Vs Reliance Petroleum Ltd 2008 (227) ELT 3 (SC) = 2008 (5) TMI 13 - SUPREME COURT , the Hon ble Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sities Institutes. Therefore, the applicant opines that CA /CMA course is a qualification recognized under law in India. 4.32. The applicant also opines that the services of provision of food and accommodation to the students perusing the said courses are also Not liable to GST under the same Notification and also as clarified vide CBIC Circular No.85/04/2019-GST dt.01.01.2019 that supply of food, beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, vide SI. No. 66 w.e.f. 01-07-2017 itself. He is providing accommodation and food services to the students of Intermediate Course and three levels of CA / CMA courses individually and with various combinations. If the value of accommodation is below or equal to ₹ 1000/- per day, the same is separately exempted vide Notification No. 12/2017-Central Tax (Rate) dt.28.06.2017 (SI.No.14). Sample copies of receipts issued by the applicant to the students for charging fee for accommodation are filed herewith. The amounts charged as about ₹ 2,500/- per course spannin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Tax in his order dt.23.05.2015 as the said service is provided to the student for obtaining a qualification recognised under the law? (f) If so, whether the service of coaching/ education provided by the applicant is exempted vide Notification No.12/2017-CT (Rate) dt.28.06.2017, as amended? (g) Whether the charges collected for providing accommodation to the students undergoing the above courses are exempted from GST as provided under Notification No.12/2017 CT (Rate) dt.28.06.2017 as amended? (h) Whether the charges collected for 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? 5.2. The advocate of the applicant filed a memo dt.19.12.2019 seeking to modify the above questions when asked to clarify under which sub-clause of Section 97(2), the above questions fall. The re-phrased questions are as follows: (a) Whether the services of supply of service of education as per the curriculum prescribed by the statutory authorities/ government to the students of the applicant for obtaining qualifications/ certificates of CA-Foundation, CA-Inter, CA-Final, CMA (IC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore us and even before the authorities under the service tax regime is whether the coaching provided by the applicant to its students is exempted from GST and service tax as the case may be. The term coaching is No more used in the GST and supply of the service is the criteria. We understand from the legal provisions, narration of the issue and the documents submitted by the applicant along with the application that the questions that are to be addressed by us in these proceedings are: (a) Whether the applicant falls within the definition of the term educational institution as defined under Notification No. 12/2017-Central Tax (Rate) dt.28.06.2017? (b) Whether the applicant is supplying the services to the students as an educational institution? (c) Whether the service of supply of food i.e. catering and accommodation to the students for these courses is exempted under the said Notification? 8.3. The relevant entries in the said Notification No.12/2017- Central Tax (Rate) dt.28.06.2017 in entry No.66 as applicable from 1.7.2017 are reproduced below again: Services provided - (a) By an educational institution to its students, faculty and staff; The term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 65B of the Act. (d) The applicant is Not affiliated or recognized or authorized by ICAI or ICWAI or it had any partnership or MOU with these bodies for imparting coaching or training related to courses recognized by these bodies. (e) The portion of education / course of IT and soft skills did Not form part of the course structure or syllabus of the courses. (f) The applicant suppressed the information from the department and therefore invokes extended period of limitation. 8.6. The Commissioner of Central Tax and GST, Guntur vide the above order dropped the entire demand both on the grounds of merits and limitation. Gist of his findings is as follows: (a) There is No change on the taxable nature of services covered under Section 66D(1) even after deletion from negative list as they are covered under exemption Notification No.25/2012-ST dt.26.10.2012. (b) As the applicant is providing coaching and training as per the syllabus prescribed by ICAI and ICWAI, they squarely fall under Section 66D(l)(ii) of the Finance Act up to 13.05.2016 and covered under exemption Notification No.25/2012-ST dt.26.10.2012 thereafter. (c) The allegation that the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y meals schemes sponsored by the Government; (iii) security or clearing or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institutions; III. The said Notification NO.25/2012-ST defined an educational institution as follows: Till March 2016: (oa) educational institution means an institution providing services specified in clause (l) of section 66D of the Finance Act, 1994 From March 2016: 2(oa): Educational institution means an institution providing service by way of: (iii) Pre-school education and education up to higher secondary school or equivalent. (ii) Education as a part of curriculum for obtaining qualification of any law time being in force. (iii) Education as a part of an approved occasional educational course. IV. Similar exemption granted under negative tax regime of service tax is extended to the educational services in GST regime also. Entry No.66 of Notification No. 12/2017-Central Tax (Rate) dt.28.06.2017 as amended by Notification No.2/2018-Central Tax (Rate) dated 25.01.2018, extracted below specifies the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining classes to the aspirants through their Regional Councils or Branches or certain accredited private colleges / institutions. They impart training in tune with the curriculum prescribed by the above said statutory bodies. They, accordingly, issue course completion certificates to their students. (b) On the other hand, the applicant is offering variety of coaching and training courses (regular, crash courses, revision exam courses etc.,) with different structures of fee, curriculum and options to the aspirants of CA and ICWA. This gives an option to the aspirants to choose a particular coaching and training of a particular course or group or subject and join in such a particular course. Further, the applicant is Not issuing any coaching completion certificate or any study certificate in respect of CA ICWA Courses. Moreover, coaching or training in applicant s coaching Centre is Not a mandatory compliance for an aspirant in pursuing their study and obtaining certificates from ICAI ICWAI. It is also Not mandatory on the part of the student to furnish any certification or Nomination or forwarding of their applications or registrations through the applicant to the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d qualification as Chartered Accountant, apart from qualifying in the examinations (CPT, Inter, Final), there are various prescribed and mandatory conditions and requirements to be fulfilled by the students/candidates. The governing bodies (i.e., Board of Studies) of ICAI and ICWAI formulated eligibility requirements for issuance of certificates by them. The Skill courses viz., Integrated Course on Information TechNology and Soft Skills (at CA intermediate level) and Advanced Integrated Course on Information TechNology and Soft Skills (at CA Final level) will be conducted / offered by the statutory bodies of ICAI and ICWAI through their Regional Councils / Branches only and accordingly issue certificates. XI. Therefore, the coaching or training service provided by the applicant to the aspirants of CA-Foundation, CA-lnter, CA-Final, CMA (ICWA)-Foundation, CMA-Inter, CMA-Final and Intermediate is Not the service provided by means of education as a part of curriculum that has been prescribed for obtaining a qualification prescribed by law . Hence it canNot be said that the coaching / training given by the applicant to CA aspiring students (for appearing and qualifying in the exami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alifications/ certificates of CA-Foundation, CA-Inter, CA-Final, CMA (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? Answer (a): The applicant is Not eligible for the exemption under Entry No.66(a) of Notification No.12/2017-CT(Rate) dated 28.06.2017, as amended. Question (b): Whether the charges collected for providing accommodation 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.14), as amended read with Circular NO.32/06/2018-GST dt. 12.2.2018 since the amount charged from the students by the hostel run by the applicant is less than ₹ 1000/- per day? Answer (b): The applicant is Not eligible for the exemption under Entry No.14 of Notification No.12/2017-CT(Rate) dated 28.06.2017. Question (c): Whether the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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