Educational institution exemption under GST applies where statutory power to award recognised qualifications brings services within the notified entry.
An institute statutorily empowered under the Indian Institutes of Management Act, 2017 to grant degrees, diplomas and other academic distinctions was treated as an educational institution because its education leads to qualifications recognised by law. On that basis, its services were held to fall within Entry 66(a) of Notification No. 12/2017-Central Tax (Rate), and the general educational exemption was available. The authority also accepted that where more than one exemption applies lawfully, the assessee may claim the more beneficial exemption, so the specific entry relating to IIM services did not preclude reliance on the broader exemption.
Issues: (i) Whether the applicant is an educational institution within clause 2(y) of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017. (ii) Whether the applicant is eligible for exemption under Entry 66(a) of the said notification.
Issue (i): Whether the applicant is an educational institution within clause 2(y) of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017.
Analysis: The applicant was held to fall within the definition because, under the Indian Institutes of Management Act, 2017, it was empowered to grant degrees, diplomas and other academic distinctions and the education provided by it was treated as education leading to qualifications recognised by law for the time being in force. The authority accepted that the statutory status conferred on the institute brought its activities within the notified definition.
Conclusion: The applicant is an educational institution within clause 2(y).
Issue (ii): Whether the applicant is eligible for exemption under Entry 66(a) of the said notification.
Analysis: Once the applicant was found to be an educational institution, its services were held to answer the description in Entry 66(a). The authority also accepted that where more than one exemption is lawfully available, the assessee may claim the more beneficial one, and held that the general educational exemption was available notwithstanding the specific entry relating to IIM services.
Conclusion: The applicant is eligible for exemption under Entry 66(a).
Final Conclusion: The ruling grants the applicant the benefit of the educational-institution exemption and recognises its status for GST exemption purposes.
Ratio Decidendi: Where an institute is statutorily empowered to award qualifications recognised by law, it falls within the notified definition of educational institution and may claim the corresponding exemption if the conditions of the notification are otherwise satisfied.
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