2018 (11) TMI 336 - AAR - GST

Institution Transformed: Eligible for Tax Exemption under IIM Act

In Re: Indian Institute of Management, Calcutta

The applicant, now classified as an 'Educational Institution' under the IIM Act, 2017, is eligible for exemption under Entry No. 66(a) of the Exemption ... Educational Institution or not - introduction of the IIM Act wef 31/01/2018 - eligibility for exemption under Entry No. 66(a) of the Notification No. 12/2017 Central Tax (Rate) dated 28/06/2017 - date of effect of notification - eligibility of refund of tax amount already paid - scope of Section 97(2) of the GST Act. Held that:- The issues that can be taken up by the Authority of Advance Ruling are determined by Section 97(2) of the GST Act. Queries regarding the date of effect of any change in the tax rate and regarding refund are not covered under Section 97(2) of the GST Act - The Authority for Advance Ruling can only take up for consideration the queries related to whether or not the Applicant is an “Educational Institution” and is liable to be exempted under of the Entry No. 66(a) of the Exemption Notification. The IIM Act does not mention any specific degree/diploma/program that can be or shall be undertaken by the Applicant. In absence of such specification, reference should be made to the degrees/programmes recognized and approved by the University Grants Commission Act 1956 (hereinafter referred to as “the UGC Act”) and the All India Council for Technical Education Act, 1987 (hereinafter “the AICTE Act”) that can be lawfully awarded by any higher educational institution in the country. It can be seen that the AICTE Act and the UGC Act are very specific and detailed about the approved courses/programmes under it. Neither of the above-mentioned Act mentions courses like PGPEX-VLM and CES-MIM.. Whether the Applicant should now continue to enjoy Eexemption under Entry no. 67, which has not been deleted even after the IIM Act came into being, or be considered for exemption under Entry no. 66(a) of the Exemption Notification? - Held that:- The Applicant is an “Educational Institution” within the meaning of sub-clause (ii) of clause 2(y) of the Exemption Notification in terms of the IIM Act. Exemption under Entry no. 66(a) is applicable to such educational institutions as such, especially as the law mentions that the qualifications awarded are to be “recognised by any law for the time being in force”. As Entry No. 67 specifically concerns IIMs, courses mentioned therein, will be eligible for Exemption under the specific entry, even if not mentioned elsewhere under any law for the time being in course - the provisions of the law are available to the Applicant. Ruling:- The Applicant is an ‘educational institution’ within the meaning of sub-clause (ii) of clause 2(y) of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017. The Applicant is eligible for benefit for exemption under Entry No. 66(a) of Notification No. 12/2017-CT(Rate) dated 28/06/2017, being an educational institution in terms of clause 2(y) of the said notification. Issues:1. Whether the applicant is considered an 'Educational Institution' after the introduction of the IIM Act, 2017.2. Eligibility of the applicant for exemption under Entry No. 66(a) of the Exemption Notification and the effective date of such exemption.3. Eligibility of the applicant to receive a refund of the tax amount already paid.Analysis:Issue 1: Educational Institution StatusThe applicant, an Educational Institution funded by the Government of India, was previously a 'Society' but transitioned to an 'Educational Institution' under the IIM Act, 2017. The institution now has the authority to award degrees and is considered an educational institution under the Exemption Notification.Issue 2: Exemption EligibilityThe applicant was previously exempted under Entry No. 67 of the Exemption Notification. However, post the IIM Act, the institution is eligible for exemption under Entry No. 66(a) as it qualifies as an 'Educational Institution' under the Exemption Notification. The applicant can benefit from the more beneficial provision as per legal precedents.Issue 3: Refund EligibilityThe Authority for Advance Ruling can only consider queries related to the applicant's status as an 'Educational Institution' and eligibility for exemption under Entry No. 66(a). Queries regarding the date of effect of tax rate changes and refunds are not within the purview of the Authority.ConclusionThe applicant is deemed an 'educational institution' under the relevant notification and is eligible for exemption under Entry No. 66(a) of the Exemption Notification. The ruling is valid unless declared void under the GST Act provisions. The legal precedents cited support the applicant's right to claim the more beneficial exemption provision available to them.