TMI Blog2019 (3) TMI 1987X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under Sl. No. 66 of the said notification - for the period from 1st July, 2017 to 30th January, 2018, GST exemption would be available only to three long duration programs. Indian Institutes of Managements also provide various short duration/short term programs for which they award participation certificate to the executives/professional as they are considered as participants of the said programmes. These participation certificates are not any qualification recognized by law. Such participants are also not considered as students of Indian Institutes of Management. Services provided by IIMs as an educational institution to such participants is not exempt from GST. Such short duration executive programs attract standard rate of GST@18%. Thus, it is crystal clear that from 31st January, 2018 onwards all long duration programs (one year or more) conferring degree/diploma as recommended by Board of Governors as per the power vested in them under the IIM Act, 2017 including one-year Post Graduate Programs for executives, are exempt from GST. - MP/AAAR/01/2019/02 - - - Dated:- 2-3-2019 - SHRI V.K. SAXENA, AND SHRI D.P. AHUJA, MEMBER PROCEEDINGS (Under Section 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption to fees towards other courses including Executive Post Graduate Programme (EPGP). 3. The Executive Post Graduate Programme in Management (EPGP) is an intensive one-year full time academic programme of IIM Indore. It consists of a fully developed curriculum of core elective courses which is approved by the academic council of the Institute. Participants who meet the academic requirement are awarded Executive Post Graduate Diploma at the annual convocation of the Institute alongwith other degree diploma programmes. It is a diploma course specially designed to enhance knowledge, skills and capabilities essential for managing and leading organizations, the programme combines skill building with exploration of good management practices. 4. Notification No. 11/2017-Central Tax (Rate) dated 28-Jun-2018 provides for CGST rate of tax on intra-supply CGST rate with similar rate in SGST, thereby effective rate being 18% (9%+9%) 5. Further notification no. 12/2017-Central Tax (Rate) dated 28-Jun-2018 provides for exemption from CGST on intra-state supply as follows : Services provided by educational Institutions SI. No Chapter, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lification recognized by any law for the time being in force;(emphasis supplied) 7. Indian Institutes of Management Act, 2017 ( IIM Act for brevity) is promulgated w.e.f. 31-Jan-2018. As per section 7 of TIM Act, powers and functions of Institute include the following : (f) to grant degrees, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions; 8. In light of above facts, Appellant filed an advance ruling application regarding exemption of EPGP course under entry no. 66 of notification no. 12/2017-CT(Rate), as a result of enactment of TIM Act, 2017 and thereby forming a viewpoint that it will be covered under - Services provided by an education institution which inter alia provides education as a part of curriculum for obtaining a qualification recognized by any law for the time being in force (refer aforesaid para 6). 9. Personal hearing was granted to Appellant on 05-07-2018, thereafter the learned Authority for Advance Ruling (AAR for brevity) pronounced ruling vide Order No. 14/2018/A.A.R./R-28/37 dated 10-08-2018 stating that EPGP course co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N AND FINDINGS 1. We have gone through the records in detail and have taken into consideration all the submissions made by the Appellant. The short point for determination is whether the course Executive Post Graduate Programme in Management (EPGP), after enactment of JIM Act, 2017 notified w.e.f. 31-01-2018 is exempted from GST. 2. The AAR in his order dated 10-08-2018 has decided that Executive Post Graduate Programme in Management (EPGP) will not be eligible for exemption from GST as the same has been categorically excluded from exemption under entry no. 67 to the notification no. 12/2017-Central Tax (Rate) and corresponding notification under MPGST ACT, 2017. The AAR also clarified that the Executive Post Graduate Programme in Management (EPGP) conducted by the applicant shall be chargeable to GST, irrespective of enactment of lIM Act, 2017. 3. Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit has issued Circular no. 82/01/2019-GST dated 01-01-2019 regarding applicability of GST on various programmes conducted by the Indian Institute of Managements (IIMs). 4. For the sake of clarity, we reproduce the relevant portions of the circul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, clarified that with effect from 31st January, 2018, all IIMs have become eligible for exemption benefit under Sl. No. 66 of notification No. 12/2017-Central Tax (Rate) dated 28-06-2017. As such, specific exemption granted to IIMs vide Sl. No. 67 has become redundant. The same has been deleted vide notification No. 28/2018-Central Tax (Rate) dated, 31st December, 2018 w.e.f. January 2019. 4.5 For the period from 31st January, 2018 to 31st December, 2018, two exemptions, i.e. under Sl. No. 66 and under Sl. No. 67 of notification No. 12/2017-Central Tax (Rate), dated 28-06-2017 are available to the IIMs. The legal position in such situation has been clarified by Hon'ble Supreme Court in many cases that if there are two or more exemption notifications available to an assessee, the assessee can claim the one that is more beneficial to him. Therefore, from 31st January, 2018 to 31st December, 2018, IIMs can avail exemption either under SI. No. 66 or Si. No. 67 of the said notification for the eligible programmes. 4.6 Indian Institutes of Managements also provide various short duration/short term programs for which they award participation certificate to the executives/profes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esigned programs (less than one year) which are not a qualification recognized by law. Not exempt from GST 4.8 Anneuxre 1 : (Programmes exempt under GST Law) The IIM- Ahmedabad refers such persons as their students who attend long duration programmes offered by the Institute for which diplomas/degrees are awarded by the Institute. These programmes are awarded based on the recommendation by the Board of Governors as per the power vested in them under the IIM Act, 2017. Such programmes are : 1. Post-Graduate Programme (PGP) - 2-year program 2. Post-Graduate Programme in Food and Agri-Business Management (PGP-FABM)-2-year program. 3. Fellow Programme in Management (FPM) - 4 to 5-year program 4. Post-Graduate programme in Management for executives (PGPX) - 12 months (1 year) full time program 5. e-Post-Graduate Programme (e-PGP)-2-year online program. This list is an example of long duration programs recognised under IIM Act, 2017 offered by IIM Ahmedabad. Similar programs offered by other IIMs of India may kindly be referred by IIMs and tax authorities during assessment. 4.9 Annexure 2 : Programmes not exempt under G ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
