TMI Blog2022 (12) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... g Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination) wherein it is clarified at SI.4 (iii) that 18% GST will be applied to other services. In the case at hand, it is evident that the affiliation services provided by the applicant enables the said institution to conduct the course/programme and do not relate to admission of students to such course/programme in the said institutions or conduct of examination for such admission in the said institution. Also, the exempted services on the conduct of examination is that related to the admission to such institution and not related to the examination based on which degree/title, etc are conferred to the students, as is being claimed by the applicant, though we do not part any opinion on the claim of the applicant that they extend such services to the institutions by extending the affiliation - affiliation fees so collected by the applicant is not exempted under the entry SI.No.66 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended. - RAJ/AAR/2022-23/16 - - - Dated:- 11-11-2022 - UMESH KUMAR GARG JOINT AND M. S. KAVIA, MEMBER Present for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in providing services of education including affiliation to various self-financing/non-Government colleges under its jurisdiction as per the education policy of the State Government. The Applicant is also registered under section 12AA of the Income Tax Act, 1961 and engaged in charitable activities as per entry No. 4 of the Notification No. 25/2012-ST dated 20.06.2012. 2) The applicant grants recognition to the colleges under its jurisdiction and collects affiliation fee as approved by the State Government. By virtue of such affiliation colleges are able to impart education to students. The admissions to colleges are done under University of Kota only and the applicant is the university which conducts exam, issuing mark sheets, declares results, and award degrees. The applicant further submitted that- 1. That the Applicant is one of the Universities created and set-up by Government of Rajasthan by a Special Act of State Assembly (the University of Kota Act, 2003) for furtherance of learning's and research in various branches of education. The setting up of the University to controlling of account and finances including deputation of officers is done by the State Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the University. He shall work directly under the control of the Vice-Chancellor. (2) Notwithstanding anything contained in this Act or any other law for the time being in force the Comptroller shall be appointed by the State Government on deputation from amongst officers of the Rajasthan Accounts Service. (3) The Comptroller shall:- (i) Advise in regard to the financial policy of the University and be responsible for the preparation of its budget and for the presentation thereof to the Board through the Vice -Chancellor. (ii) Manage the properties, movable and immovable, and investments of the University. (iii) Keep all moneys belonging to the University in a schedule bank Ltd or Central Cooperative Bank except the amounts needed as imprest cash (to be prescribed by the Vice-Chancellor) in transacting business of the University. (iv) Ensure that no expenditure not authorized in the budget is incurred by the University otherwise than by way of investment. (v) Disallow any expenditure which may contravene the terms of any statue or for which provision is required to be made by statue but has not been made; and (vi) Ensure the compliance of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent may be conferred the autonomous status by the University in the matter of admission: of students, prescribing the courses of studies imparting, instructions and training, holding of examinations and powers to make necessary rules for the purpose' 9. As per clause 34 of the of the University of Kota Act, 2003 provides that: (34) Control of the State Government - Where the State Government funds are involved the University shall abide by the terms and conditions attached to the sanction of such funds which may inter alia include prior permission of the State Government in respect of the following namely:- (a) Creation of the new posts of teachers, officers or other employees; (b) Revision of the pay, allowances, post -retirement benefits and other benefits to its teachers' officers and other employees; (c) Grant of any additional / special pay, allowance or other extra remuneration of any description whatsoever, including ex-gratia payment or other benefits having financial implications to any of its teachers, officers or other employees (d) Diversion of any earmarked funds other than the purpose for which it was received; (e) Transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough constituent and affiliated colleges. The management, operations, working and accounts, all are controlled by the State Government with the 'Chancellor' being the Governor of the State. Admission, examination leading to degree for all the students enrolled with the University through different colleges all are facilitated or conducted by UOK. There is a common examination conducted by UOK for all the courses. It is a fact that no college can operate on its own unless it is affiliated to any University, UOK in this case. It is therefore submitted that UOK is very much engaged in education related services and hence there is no Service Tax liability. 13. That the UOK is engaged in provision of education related services through its affiliated colleges which cannot provide such services on a standalone basis as per the scheme of education applicable in India. Such affiliation is also recognized by UGC. The courses offered for which fees is collected are approved by University. 14. In lieu of affiliations granted to colleges, applicant charges affiliation fee on annual basis as approved by the affiliation fee committee and notified by the University. The said affiliat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt universities are allowed to grant affiliation against affiliation fees from colleges imparting education to students on behalf of Universities as they cannot directly cater to the students. Even the mark sheets and degree certificates are granted by University and not the respective colleges. Without affiliation, the colleges cannot operate and provide educational services; hence it is clear that Affiliation or recognition is the mandatory condition to be fulfilled by the colleges for imparting education. Also, the Affiliation fees are paid out of the fees collected from students and not by operating any other object/trade; that services provided by applicant clearly fall under clause 66 of N.No. 12/2017-CT (Rate) dated 28.06.2017 under exemption notification as education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force and Affiliation fees' so collected fall under Educational Services as provided in the Exemption Notification and should be allowed to the Applicant under Notification No. 12/2017-CT (Rate) dated 28.06.2017. 3) Applicant emphasis on the word in relation to and claimed that affiliation services, if any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In Doypack Systems Pvt. Ltd. v. Union of India AIR (1988) SC 782, 800; Swadesh Cotton Mills Co. Ltd. j) In Navin Chemicals Mfg. and Trading Co. Ltd. v. Collector of Customs, (1993) 4 SCC 320, 324. (Customs Act, 1962) 6) Further Applicant submitted more submission vide letter 29.08.2022 at the time of P.h and refer the Circular No. 177/09/2022-TRU dated 03.08.2022 along with judicial pronouncement of various court of Law and contended that all the services supplied by an educational institute to its student are exempt from GST. The applicant relied on the fact that the affiliation fees collected by them is actually recovered from the fees of students thus its an supply of service to students. 7) Applicant Contended that In view of the facts as enumerated by them, statutory provisions, exemption notification and interpretation thereof, the applicant is of the opinion that the activity of affiliation to college is nothing but a statutory function and an educational service in relation to education to its students and educational institutes, more particularly w.e.f. 25.01.2018. Even otherwise the exemption is covered under clause (a) of S.No. 66 of Notification No. 12/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Affiliation Fee Committee which varies from course to course for which affiliation is provided and notified by the university with copies to education department etc. The applicant has sought ruling on the following question: whether the services provided by the University of Kota relating to affiliation granted to colleges for imparting education is a supply of service liable to levy of GST under the CGST Act, 2017? It yes, whether amount collected by way of affiliation fee, are exempted vide S.No 66 of Notification No.l2/2017-CT (Rate) dated 28.06.2017. 3) It is stated by the applicant that in the Pre-GST regime, affiliation fee was an exempt taxable service vide entry No. 9 of Notification No. 25/2012-ST dated 20.06.2012. Applicant has raised the question on the eligibility of the Notification to the service supplied by them. Therefore, the application is admitted and the question for which ruling is sought is taken up for decision. 4) We observe that The facts of the case as seen from the records before us is that the applicant is a University established with the object - to affiliate colleges to the University as affiliated, Professional or postgraduate colleg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such educational institution; Services relating to admission to, or conduct of examination by, such institution upto higher secondary (upto 24.01.2018) The above entry is amended by Notification No. 02/2018-C.T.(Rate) dated 25.01.2018 and the amendment is as under: Accordingly, w.e.f. 25.01.2018 (as amended vide Notification No. 2/2018-CT (Rate) dated 25.01.2018), the entry as follows: 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 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: Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b)] shall apply to an educational institution other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of applicability of GST on affiliation fees. Further we find that all the case laws are relating to erstwhile service tax Act and provisions of Service Tax Act cannot be equated to GST Act and entirely different so not applicable in the instant case. 11) Now we would like to discuss the clarification circular quoted by the applicant. The relevant portion of clarification made under Circular No. 177/09/2022-TRU dated 3.08.2022 is as under-: Applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions Circular No. 177/09/2022-TRU,- 4.1 Representations have been received regarding applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions. 4.2 In this regard, it is stated that educational services supplied by educational institutions to its students are exempt from GST vide entry 66 of the notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 relevant portion of which re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations.- (ii) GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing Circular No. 151/07/2021-GST of notification for examination, admit card and questions papers etc, when provided to such Boards [under S. No. 66 (b) (iv) of not if No. 12/2017- CT(R)]. (iii) GST at the rate of 18% applies to other services provided by such Boards, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test) so as to authorize them to provide their respective services which is more relevant in the matter. 13) We observes that the affiliation fees under the general functions by the University to colleges regarding approval for a college, approval for a course, start-up approval, permanent affiliation, continuation of affiliation for each course, permission for increase in intake for each course and penal fee for Late Application and such collection of fees appeared to be not relating to admissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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