TMI Blog2021 (1) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Rate) dated 28.06.2017, and, hence, the admittedly, the applicant does not fall under the definition of educational institution - It is further worthwhile to mention here that the advance ruling authority is not the Legislature to amend the GST law, but it concise with law. Hence, it is not the authority to consider science education imparted by Community Science Centres as an integral and important support to formal education system in raising the quality of science education and include it in the definition of educational institution - thus it can be safely concluded that the applicant is not at all entitled for exemption in respect of any activity undertaken by them under Entry at Sr. No. 66 of the exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended. Requirement of Registration Certificate u/s 23(2) of the Goods and Service Tax Act - applicability of exemption Notification No.12/2017-State Tax dated the 30th June, 2017 - HELD THAT:- This notification makes the exemption to charitable trusts available only in respect of charitable activities. While the income from only those activities listed above is exempt from GST, income from the acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds the above mentioned, the applicant is dedicated to promote among students, teachers and lay public: An understanding of the fundamental concepts involved in the Physical and Biological Sciences and mathematics. The acquisition of scientific knowledge and insights as far as possible by the process of inquiry through experiment, audio-visual media and other means, To stimulate interest, encourage and expose the principles of science and the scientific method to elementary, secondary and college students, teachers and the general lay public. To be concerned with the role of education and ways of improving education in relation to the individual and the community as a whole; To make clear the social implication of science and technology. 4. They further stated that the Article 51A of the Constitution of India states that it shall be duty of every citizen of India to develop the scientific temper, humanism and the spirit of inquiry and reform . The applicant truly understands this duty and responsibility undertakes activities to develop Scientific temper, innovation and spirit of inquiry. The Applicant aims to nurture young minds towards scientif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oresaid question(s): (A) Notification No. 25/2012-Service Tax: 8. Referring the definition of education institute stated in the Notification No. 25/2012-Service Tax, the applicant submitted that though they do not provide formal education, their activities complement the formal education and strive to improve its quality. They are fulfilling the government s mandate of improving quality of science education. Along with the applicant, there are several similar education institutes imparting science education such as the District Community Centres, Regional Community Science Centres and Science cities. The Government may or may not be able to fund all the community science centres for the remarkable work they are doing to develop scientific temper. B. Service by an entity registered under Section 12AA of the Income Tax Act, 1961 (43 of 1961) by way of charitable activities: 9. They are registered as Trust-Education Trust, vide registration No. 12AA HQ-III-32(V-9)/91-92/AR-8, since 22.08.1991 and services by an entity registered under Section12AA of the Income Tax Act, 1961 (43 of 1961) by way of charitable activities are exempted.[Charitable activities ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d community as a whole; To help make clear the social implication of science and technology. (ii) The Applicant further submitted that in order to achieve the above objects the Applicant is carrying on main functions as mentioned in the Memorandum of Association is enclosed herewith for your kind consideration. (iii) The Applicant further submitted that for carrying out such educational activities on charitable basis, they have obtained registration under the provisions of the Society Act and also obtained certificate u/s 12AA of the Income Tax Act are attached herewith for your kind consideration. (iv) Such charitable activities carried out by the Applicant are categorically covered under the Notification No.12/2017-State Tax dated 30th June, 2O17 Serial No. 1 and Serial No. 66 of the said notification and accordingly specifically exempt from tax under the provisions of the Goods and Service Tax Act. (v) VASCSC started as a facility where people concerned about quality of science education could come together to try out new ideas and methods for teaching Science. With its origin as 'Group for Improvement of Science Education (GISE)' in 1963 from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace in mainstream today. (xi) The Centre's efforts for providing the equality of science education and popularization have received recognition from several agencies. Some of the awards received include: (i) National Award for 'Outstanding Efforts in Science Technology Communication' given by Dept. of Science technology, Govt. of India in 2008. (ii) The Times of India Social Impact Award for Education in 2011. (xii) In view of the above, the Applicant prayed that; (a) referring to the above charitable activities carried out under the eligibility certificate of charitable activities granted u/s 12AA of the Income Tax Act, which are categorically covered under entry 1 and 66 of the Notification No.12/2017-State Tax dated the 30th June, 2017 may please be determined as activities under the said entries of the said notification and may please be determined as exempt from the Goods and Service Tax Act, 2017. (b) Charitable activities carried out as being exempt under serial no. 1 and 66 of the Notification No.12/2017-State Tax dated the 30th June, 2017, such activities may please be granted exemption from obtaining Registration Certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovide formal education, their activities complement the formal education and strive to improve its quality. They are fulfilling the government s mandate of improving quality of science education. The applicant, therefore, requested to consider science education imparted by Community Science Centres as an integral and important support to formal education system in raising the quality of science education and include it in the definition of education institute . 16. As they are undertaking various innovative programmes for improving quality of science education, its popularization and building scientific temper, as mentioned herein above, it is relevant to examine entry at Sr. No. 66 of the exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, which exempts: Services provided- (a) by an educational institution to its students, faculty and staff;----------- 16.1 Thus, the services provided by an educational institution to students, faculty and staff are exempt. The term Educational Institution is defined in para 2(y) of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, which reads as under: (y) an educational institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, 1961 by way of charitable activities from whole of GST vide Entry No.1 of said Notification, which specifies that services by an entity registered under Section 12AA of Income-tax Act, 1961 by way of charitable activities are exempt from whole of the GST. Thus, as per this notification, exemption is given to the charitable trusts, only if the following conditions are satisfied: a) Entities must be registered under Section 12AA of the Income-tax Act, and b) Such services or activities by the entity are by way of charitable activities. Thus, it is essential that the activities must conform to the term charitable activities , which has been defined in above notification as under: charitable activities means activities relating to - (i) public health by way of, - (A) care or counselling of (I) terminally ill persons or persons with severe physical or mental disability; (II) persons addicted with HIV or AIDS; (III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or (B) public awareness of preventive health, family planning or prevention of HIV infection; (ii) advancement of religion, spi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commerce where charges are ten thousand rupees or more per month. 17.5 Similarly, Entry No.80 of the Notification No.12/2017-Central Tax (Rate), provides the following exemption to an entity registered under Section 12AA of the Income Tax Act, 1961: Services by way of training or coaching in recreational activities relating to- (a) arts or culture, or (b) sports by charitable entities registered under section 12AA of the Income-tax Act. Thus, services provided by way of training or coaching in recreational activities relating to arts or culture or sports by a charitable entity will be exempt from GST. 17.6 Accordingly, we come to the conclusion that the applicant is not entitled for exemption in respect of any activity undertaken by them, under the said Entry Nos. 1, 13 80 of the of the exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended, granting exemption to an entity registered under Section 12AA of the Income Tax Act, 1961. 18. In view of the above, we hold that the applicant is liable to pay GST on all the activities carried out by the applicant as mentioned in foregoing para and, consequently, required to obtain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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