TMI Blog2022 (2) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant likes to know whether the income earned from conducting guest lectures amounts to taxable supply of service. The applicant is of the opinion that guest lectures rendered by him on law and legal awareness acts as a refreshment or diversion from the usual monotony and hence the services provided by him by way of training are recreational activities relating to arts or culture and as such, is non-taxable as the same falls under Entry No.80 of Notification No.12/2017 Central Tax (Rate) dated: 28.06.2017, chargeable at 'NIL'. The applicant states that he provides teaching and training and interconnected activities under Research and Training Projects granted by the Government of India and State Government of Karnataka. The applicant likes to know whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to taxable supply of service to be taxed at Nil rate as per Heading 9992 or amounts to or results to as taxable supply to be taxed at Integrated Taxed 18% under Heading 9983 - It is seen that there is no privity of contract between the applicant and the Government and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esults to as taxable supply of service to be taxed at Nil rate as per Heading 9992? c. Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at (Integrated Tax) 18% under Heading 9983? 4. Admissibility of the application: The question is about determination of the liability to pay tax on any goods or services or both and hence is admissible under Section 97(2)(e) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue: 5.1 The applicant states that he is a Professor of Law at National Law School of India University, Bengaluru and is engaged in classroom teaching and training for students and other personnel, and the payments for which are made by Educational Institutions. The applicant states that he is also invited by multiple Universities and Colleges of National Repute to deliver Guest Lectures. 5.2 The applicant states that he provides teaching and training and interconnected activities under Research and Training Projects granted by the Government of India and Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 20,00,000/ - in the Financial Year 2018-19, the applicant registered himself with GSTIN 29AFZPB2086B1ZB as on 05/ 03/ 2019. vi. However, the Applicant understands that the delivery of guest lectures and teaching Services to Universities and Projects funded by Government of India and State Governments are Taxable Supply of Services within the meaning of Section 2(109), as such seeks the clarification of the Hon'ble Advance Ruling Authority on the aforesaid facts and circumstances of the Applicant. 2. The applicant has filed an application before the Advance Ruling in Form GST ARA-01 on 25-10-2021 seeking following clarifications; Q.A Whether the income earned from conducting Guest Lectures, amounts to or results to as supply of taxable services. Q.B. Whether the Income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply of Service to be taxed at Nil rate as per Heading 9992? (SAC 9992 - Services provided to the Central Government, State Government, Union territory administration under any training program for which total expenditure is borne by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead to grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification. Services provided by way of education as a part of a prescribed curriculum for obtaining a qualification recognized by a law of a foreign country would not be covered in this entry. The course should be recognized by an Indian Law. In the context of vocational education / training / skill development courses (VEC) offered by an institution (as an independent entity in the form of society or any other similar body), qualification implies a Certificate, diploma, Degree or any other similar Certificate. Under Central Goods and Services Tax Act - CGST (12 of 2017) core education services provided by educational institutions, as mentioned below, are exempted in terms of Notification 12/2017-CGST (Rate) dated 28.06.2017. (i) Services under Heading 9992 (Educational Services)-Sl.No. 66 of Notification No.12/ 2017 CT Rate Dt.28. 06.2017 exempts, services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to be provided, by a Technology Business Incubator or a Science and Technology Entrepreneurship Park recognised by the National Science and Technology Entrepreneurship Development Board of the Department of Science and Technology, Government of India or bio-incubators recognised by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India. From the above and on study of the relevant provisions of CGST Act 2017, relevant notification and submissions made by the applicant, it appears that:- (i). The applicant primarily engages in Classroom Teaching and Training for Students and other personnel, delivers guest lectures at Institutions of International and National Repute, recognized by the UGC, and sponsored by Government of India and teaching-interconnected activities under a Project sponsored by the United Nations Development Program and also provides Teaching and Interconnected activities under Research and Training Projects granted by The Government of India and State Government of Karnataka and International Institutions such as UNDP or otherwise. The applicant receives remuneration for all the above said serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnataka, amounts to or results in Supply of Taxable Services. As per the information supplied by the applicant, Income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka to be taxed at Integrated Taxed 18% under Heading 9983 as no information is forthcoming whether the training is being provided to Central Government, State Government or Union Territory Administration, to merit classification under 9992, wherever fee is charged by the education institution, the service proved is not exempt. Q.3. Whether the Income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at Integrated Taxed 18% under Heading 9983? (SAC 9983-Other professional, Technical and business services) Ans.03. The question may be seen in two different contexts: 1. As per Notification No.12/ 2017- Central Tax (Rate) dated 28.06.2017 Services provided to the Central Government, State Government, Union Territory Administration under any training program for which total expenditure is borne by the Central Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude something that requires skill. 6.4 The applicant is of the view that the training and education provided by him is on Law, Legal Awareness and the like, relate to arts and culture and is engaged for recreational purposes to break the monotony of the classroom lectures, by engaging guest faculty who are able to convey the subtleties of the law in a recreational manner, thereby breaking the ice for the recipients. 6.5 The applicant in view of the above submits that the Guest Lectures and Training activities provided by him on Law and Legal awareness amounts to services by way of training or coaching in recreational activities relating to arts or culture, and as such amount to non-taxable supply. 6.6 The applicant submits that he provides teaching, training, and interconnected activities under research and training programmes granted by GOI and GOK. The applicant further submits that the services provided by him are pure services and falls under Item 3 of Notification No.12/2017 - Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Karnataka GST Act, 2017 and as such the same not being amenable to levy of SGST. 7. The applicant has submitted MOU between Ministry of Environment, Forest and Climate Change, Government of India and Centre for Environmental Law Education, Research and Advocacy (CEERA), National Law School of India University towards project granted to National Law School. 8. In view of the above, the applicant states that the services rendered by him like teaching and training programmes are prima facie non-taxable supply of services for the purposes of the Central Goods and Services Tax Act, 2017. PERSONAL HEARING/ PROCEEDINGS HELD ON 26-11-2021 9. Sri Rohith R. Kamath, Advocate Authorised Representative of the applicant appeared for personal hearing proceedings held on 26-11-2021 and reiterated the facts narrated in their application. FINDINGS DISCUSSION 10. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing guest lecture provided by the applicant amounts to services by way of training or coaching in recreational activities relating to arts or culture as per entry No.80 of Notification No.12/2017-Central Tax (Rate) dated: 28.06.2017 is not tenable. 15. The applicant is a Professor of Law at National Law School of India University who also provides guest lectures on law and law awareness and the same are covered under other professional, technical and business services which is taxable at 18% GST as per entry No.(ii) of 21 of Notification No.11/2017 Central Tax (Rate) dated: 28.06.2017 which is reproduced below: Sl.No. Chapter, Section, Heading Description of Services Rate (percent.) Condition 21 Heading 9983 (Other professional, technical and business services) (ii) Other professional, technical and business services other than (i) above 9 - 16. The applicant states that he provides teaching and training and interconnected activities under Research and Training Project ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Administration. 20. The applicant has provided a copy of MOU signed between Ministry of Environment, Forest and Climate Change, Government of India and Centre for Environmental Law Education, Research and Advocacy (CEERA), National Law School of India University. But there is no privity of contract between Ministry of Environment, Forest and Climate Change, Government of India and the Applicant. Hence the same is not covered under item 72 of the said Notification. 21. Since no information is forthcoming with regard to the recipient of services, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%. 22. In view of the foregoing, we rule as follows: RULING a. The income earned from conducting Guest Lectures, amounts to taxable supply of services as per entry No. (ii) of 21 of Notification No. 11/2017-Central Tax (Rate) dated: 28.06.2017. b. In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%. c. In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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