Authority on Advance Rulings (GST), Karnataka: A Bench of Harish Dharnia, Additional Commissioner of Central Excise (Member-Central Excise) and Dr Ravi Prasad M.P., Joint Commissioner of Commercial Tax (Member-State Tax) ruled that the long-duration Post-Graduate Diploma/Degree Programmes offered by the India Institute of Management, Bengaluru, other than those specifically mentioned in SI. No. 67 of the Notification no. 12 of 2017 – Central Tax (Rate) dated 28-06-2017 as amended by Notification No.2 of 2018 dated 25-1-2018, are not exempted from Goods and Services Tax liability on education. So also, the supply of online educational journals or periodicals to IIM-B is not exempted from the reverse charge liability under SI. No. 66 of the said notification.

The occasion for the above ruling arose when IIM-B filed an application for an Advanced Ruling under Section 97 of the CGST Act, 2017 and the Karnataka GST Act, 2017 read with rule 104 of the Rules thereof. The advance ruling was sought in relation to the two questions enquiring whether the above-noted two heads were exempt from the liability under GST. It was contended that the services which were not exempted under Entry 67, should be treated as exempted under Entry 66.

The Authority noted that Entry 66 is a general entry in relation to exemption of services provided by an educational institution and/or to the educational institution. Entry 67  also relates to educational services, however, it was seen that Entry 66 was carved out specifically and only for the educational services provided by IIMs. In other words, IIMs have been segregated from other educational institutions services.

It was concluded that when the Notification provides for specific entry for IIMs at SI. No. 67, the provisions of Serial No. 66 shall not apply to them. On such a conclusion, both the questions referred to the Authority by IIM-B were answered in the negative. It was clarified that the ruling is valid subject to the provisions under Section 103(2), until and unless declared void under Section 104(1) of the GST Acts.[Indian Institute of Management, Bengaluru, In re, Advance Ruling No. Kar ADRG 25 of 2018, dated 25-10-2018]

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  • Thanks for sharing this education is too much benificial of today’s life.

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