TMI Blog2021 (11) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... it. In the terms and conditions attached with the School Summary Form (EB / ARO) 2019 submitted by the applicant, one of the conditions is that, Fees from the students should be charged as per the offer availed by your school . It therefore appears that the schools are required to collect the fees for ASSET from the students, as determined by the applicant and remit the same to the applicant. As mentioned in the School Summary Form (EB / ARO) 2019, it appears that the schools are offered 10% Discount towards Administration cost - It is therefore evident that the schools are not conducting the ASSET, rather the schools are facilitating the applicant to conduct ASSET for which the schools get some amount towards administration cost. Whether the ASSET can be said to be conducted by schools, even if it is used to evaluate the performance of students for giving internal marks by the schools? - HELD THAT:- The schools may find ASSET to be a good tool to evaluate students level of understanding of different subjects and may also find the detailed reports given by the applicant to be useful for devising future course of action by the schools. Therefore, schools may enter into agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the application for Advance Ruling that it deals in the products and solutions mainly intended to be used by primary and secondary schools for the assessment and learning. ASSET is examination tool for educational assessment of student in class 3rd-10th Standards across India and outside India. They provide the question bank of various subjects which are set by them based on the class level, board (like state or CBSE or ICSE etc.) and the methodology adopted by the school for teaching, to the Schools and it is called ASSET which stands for Assessment of Scholastic Skills through Educational Testing . The applicant submitted that it is a scientifically designed, skill-based assessment Exam. Rather than testing rote learning, it uses multiple choice question to focus on measuring how well SKILLS and CONCEPTS have been understood by the students. The basic nature of ASSET service is an examination to be conducted by Education Institution (School) but outsourced to the Educational Initiatives (EI) i.e. to the applicant. The assessment generates examination reports for students, indicative of their progress and topics that require attention and improvement. ASSET is an educational ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mination by schools and it does not have any other use than in conducting a specific examination. The applicant is, therefore not liable to pay tax on the service provided to the Educational institution. 2.4 The applicant submitted that every activity of educational institution by which it examines progress or test qualification or knowledge of student would fall under meaning of examination by the educational institution. In the instant case, applicant is providing contents to the school for conducting examinations and after examination, provides reports on performance of students. These reports are used by the schools for evaluation of the students. Thus in view of the above, service provided by the applicant is in relation to conduct of examination. 3. The GAAR, vide Advance Ruling No. GUJ/GAAR/R/27/2020 dated 02.07.2020, inter-alia observed that, the applicant is supplying ASSET multiple question to the Schools for the students of 3rd to 10th Standards and such schools are providing education to the students up to higher secondary standard. Therefore these schools fall under the definition of Educational Institution as defined under sub-clause (i) of clause (y) of P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... questions too apart from printing them, accordingly similar kind of service was provided by the service provider to Educational Institutions. In view of the foregoing, the GAAR has ruled as follows :- Question : Ans : Yes, exemption is available in view of the above discussion in respect of ASSET services provided to educational institution. 4. Aggrieved by the aforesaid ruling, the Assistant Commissioner, Central Goods and Services Tax, Division VII, Ahmedabad South Commissionerate (Jurisdictional Officer) (herein after referred to as the appellant or the Department ) has filed the present appeal. 4.1 It has been submitted in the grounds of appeal that the aforesaid Advance Ruling is based on erroneous interpretation that the appellant provides service to an educational institute by way of service related to admission or conduct of examination by, such institute, up to higher secondary. Thus Authority of Advance Ruling has erroneously granted the benefit of Exemption of GST under Sr. No. 66(b)(iv) of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and Entry No. 69(b)(iv) of Notification No. 9/2017-Integarted Tax (Rate) date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on all subjects at a national, state and city level. (ii) It provides in depth of section s performance, skill analysis highlights areas of improvement for section. (iii) Assess and inform students understanding of concepts and about critical learning gaps. (iv) What should teachers do to improve classroom instruction. (v) Provides insight more in Mybooks i.e. Student Mybook, Teacher Mybook and Management Mybook. (vi) Student Mybook consists of following : Response Sheet, Skill Profile and Remediation target, Strength and Weakness with remediation planning, Practice question for learning check. (vii) Teacher Mybook consist performance table for student responses, Skill summary for remediation target, CWA question with remediation planning, practice question for learning check. (viii) Management Mybook offers benchmarking of the whole school at city, regional and national level. (ix) POST ASSET analysis with a focused 1 day workshop is conducted by special trainers. 4.3 It has been submitted that as per the dictionary meaning of Examination, Examination is a formal test that you take to show your knowledge or ability in a particular subje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... practice questions that can be used to reinforce concepts in weak skills. Students get a personalised report which highlights their strong and weak skills. Practice questions for the weak skills are also provided. 4.5 From the above referred information, ASSET is a benchmarking test for school and not examination conducted by the school in respect of their core activity i.e. Education upto the level of higher Secondary. Further, GAAR has observed that ASSET exam is conducted without any pre / post teaching business with the school and under ASSET, they do not provide any pre or post exam teaching to the students , whereas in Management Mybook 2018, it has been mentioned that the ASSET provides feedback on real learning to student. They also provide them personalized report which highlights their strong and weak skills and practice question for weak skill in order to reinforce concepts in weak skills. 4.6 Further, it has been submitted that the applicant, in Student Mybook 2018 explained to parents, what is ASSET . Content of the Student Mybook 2018 is reproduced below for ready reference Make ASSET your child s ASSET ! Dear parent, This My ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Limited, by Gujarat AAR (2018 (10) TMI 201) and M/s The Banglore Printing and Publishing Co. Limited, by Karnataka AAR (2019 (11) TMI 157), it was held that supply of printing question papers is eligible for exemption under Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. In these cases, the supplier received orders for printing of question papers, with the content of questions provided to them. However, in the instant case, the applicant has been preparing the questions too apart from printing them. Further, the applicant s activity is not limited to that extent and they are further involved in chain of events like providing reports to students, teacher and management, personalized practice questions to the students and continuous academic support team to help the school teachers make the most out of the insights derived, plan remedial measures and to make necessary adjustments to their teaching plans. Thus they are not merely involved in providing the question papers to the schools. 4.9 It has been submitted that in view of the above, the ASSET Assessment Programme of the applicant does not satisfy the condition that the supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20, as amended, as well as equivalent IGST and SGST notification. 5. The applicant has also made written submissions vide letter dated 05.11.2020 against the Appeal filed by the Department. 5.1 Apart from reiterating the submissions made in the Application for Advance Ruling filed before the GAAR, the applicant has submitted that the dictionary meaning are guided by the general linguistic principles however when the terms are used in relation to a particular subject, the essence of the meaning is to be construed in view of the subject in relation to which the meaning are narrated. Therefore, the term examination and assessment when viewed from the academic perspective indicate that the same are synonyms and both the terms indicate that the subject is put to attest or like tool which would help in ascertaining the knowledge level of the subject in a particular subject. The department s view that they have provided an assessment programme instead of examination by using so many words, falls flat inasmuch as assessment and examination in academic perspective mean one and the same thing. 5.2 The applicant has submitted that Examination does not start and end with j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... student is evaluated by use of ASSET. This fact establishes the fact that ASSET is a test that measures the academic acumen of a student which is nothing but an examination looking from the perspective of academics. b. Prescribing personalized feedback and practice question for learning purpose : Providing practice question is merely aimed at getting the students acquainted with the methodology of the test. A simple act of providing practice question does not take away the point that ASSET is an examination. 5.5 The applicant has submitted that providing full time support for school and teachers with regard to ASSET tool does not change the fact that they are rendering service in relation to conducting an examination. Further, it is submitted that one day workshop is conducted for the sole purpose of explaining to the teachers as to how to analyse the reports generated after the class has taken ASSET exam. This is required because the reports are very detailed and it is important that the teachers need to be trained on how to analyze it. They don t have any kind of interaction with the students whatsoever hence the question of providing training to students does not aris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ublicity mileage. The website contents portray the array of products and services offered by the applicant of which only one particular activity is under dispute. The web-contents are designed on the marketing front whereas the actual activity needs to be assessed in terms of the agreement entered into with the schools. 5.11 The applicant has submitted that the department had not taken into consideration the point number 8 of the terms and condition of the agreement which states that, ASSET shall form mandatory part of their examination and evaluation of the students. Schools have themselves agreed that ASSET shall form part of their examination system. The fact that they provide question paper in physical as well as online format to the school and also the other fact that if any school took ASSET, it is mandatory to take for all the students in a class and they are not at a liberty to take it for few students only, have not been taken into consideration. 5.12 The applicant has submitted that the above facts clearly point out that they have provided service to schools in relation to conduct of examination and as such the service is squarely covered under Sr. No. 66 of Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Goods and Services Tax in terms of Entry No. 66 (b) (iv) of Notification No. 12/2017-Central Tax (Rate) dated 28-6-2018, as amended vide Notification No. 2/2018-Central Tax (Rate) dated 25-1-2018, or otherwise. 7.1 It would, therefore be appropriate to refer to the relevant entry at Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and other relevant terms defined / explained in the said Notification, which reads as follows :- Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition (1) (2) (3) (4) (5) 6 Heading 9992 or Heading 9963 Services provided (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; (b) to an educational institution, by way of,- (i) transportation of students, faculty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. We are, therefore, of the view that this matter can be decided by determining whether it can be said that ASSET is conducted by the schools or otherwise, without going into the question whether the ASSET is examination or assessment and without deliberating upon the difference between the terms examination and assessment . 8.1 As submitted by the applicant, ASSET is an examination tool for educational assessment of students in class 3 to 10, across India and outside India; that the applicant provides the Question Bank of various subjects, which are set by them based on the class level, Board type (State Board, CBSE, ICSE etc.) and the methodology adopted by the school. Thus, the Question Papers of various subjects are set by the applicant and not by the schools. Further, these Question Papers of various subjects are printed / got printed by the applicant and not by the schools. 8.2 On going through the School Summary Form (EB / ARO) 2019 submitted by the applicant, it appears that the ASSET test is taken twice a year, i.e. Summer Round and Winter Round . In the said School Summary Form (EB / ARO) 2019, the ASSET Test dates have been mentioned as Summer Round ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs and Science and other optional subjects viz. Social Studies and Hindi. However, within the group of subjects (English, Mathematics and Science), there does not appear any choice to select any one or two subjects. 8.4 In case of ASSET, the answers given by the students are assessed by the applicant and not by the schools. Further, the result of the ASSET is also prepared by the applicant. 8.5 On the basis of assessment of the answers given by the students, the applicant provides results, which is accompanied by a detailed analysis, listing out students strength and weaknesses. The applicant also provides practice tests to the students, concentrating on their weak points. The applicant also provides answers to the exam, with elaborate explanation, to enhance the self learning process and to equip students with skills to avoid misconceptions in future. In this process also, the schools have no role. 8.6 It is apparent that in case of ASSET, the Question papers are set and printed by the applicant, timings of ASSET are fixed by the applicant, answers given by the students are assessed by the applicant, based on which result and detailed analysis is given by the applicant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remit the same to the applicant. As mentioned in the School Summary Form (EB / ARO) 2019, it appears that the schools are offered 10% Discount towards Administration cost. (The applicant has not submitted any details / documents in respect of other discount in respect of which it is mentioned to refer to the Offer and Discounts section). It is therefore evident that the schools are not conducting the ASSET, rather the schools are facilitating the applicant to conduct ASSET for which the schools get some amount towards administration cost. 11.1 It is the contention of the applicant that the department has made submissions on the basis of the website content. It has been contended that the web contents are designed on the marketing front whereas the actual activity needs to be assessed in terms of the agreement entered into with the schools. However, the applicant has specifically not controverted any submission made by the appellant department or it has not been submitted which part of their website content is at variance with the actual activity carried out by them in relation to conduct of ASSET. 11.2 The applicant has submitted that ASSET is used by the schools registered w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of agreement with schools, it is mandatory for schools to take ASSET for all the students in a class and they are not at liberty to take it for a few students only. In our considered view, even this aspect would not change the basic characteristics of ASSET that it is conducted by the applicant and not by the schools. The schools may find ASSET to be a good tool to evaluate students level of understanding of different subjects and may also find the detailed reports given by the applicant to be useful for devising future course of action by the schools. Therefore, schools may enter into agreement with the applicant with a condition that all students in a class would take ASSET. The condition of the agreement only leads to a conclusion that unless the school agrees to take ASSET for all the students in a class, the applicant would not enter into a contract with that school to conduct ASSET. However, such condition in an agreement cannot change the nature of ASSET and it will not make ASSET an examination conducted by the schools. 11.5 A reference has also been made to a Flyer issued by the Central Board of Excise Customs (CBEC, now Central Board of Indirect Taxes Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of examination by such schools. Therefore, exemption from payment of Goods and Services Tax, as provided under Entry at Sl. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended and corresponding Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended, is not available to ASSET. 13. The appellant as well as the GAAR in the Ruling have referred and relied upon various decisions. We have gone through the said decisions. 13.1.1 In the case of Edutest Solutions Pvt. Ltd. [2018 (18) G.S.T.L. 77 (AAR-GST)], the manuscript material for printing the Question Papers was being supplied by the Education Boards / Educational Institutes and the scope of work of Edutest Solutions Pvt. Ltd. was limited to composing, typesetting. printing, packing and supplying sealed Question Papers to the Education Board / Educational Institutes. In that case, usage rights of the manuscript material of Question Papers were owned by the Education Boards / Educational Institutes. Similarly, in the case of The Bangalore Printing and Publishing Co. Limited [2019 (29) GSTL 835 (AAR-GST)], the work of the applicant therein was limited to composing and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
