Educational institution status under GST extended exemptions to IIM programmes and journals after the 2017 Act empowered degree conferral.

After the Indian Institute of Management Act, 2017 empowered IIM Bangalore to confer law-recognised qualifications, its long-duration postgraduate diploma and degree programmes fell within the definition of "educational institution" in the GST exemption notification and became exempt under the general services entry from 31.01.2018. Where the general exemption and the specific IIM entry overlapped, the assessee could claim the more beneficial exemption. On the same basis, online educational journals and periodicals supplied to IIM Bangalore were exempt once it qualified as an educational institution: imports from a non-taxable territory were covered by the IGST exemption, and corresponding domestic supplies were also exempt.

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Issues: (i) Whether, after the Indian Institute of Management Act, 2017 came into force, the long duration post graduate diploma and degree programmes offered by IIM Bangalore became exempt from GST under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. (ii) Whether supply of online educational journals or periodicals to IIM Bangalore became exempt from GST or IGST, including under reverse charge, after IIM Bangalore acquired the character of an educational institution.

Issue (i): Whether, after the Indian Institute of Management Act, 2017 came into force, the long duration post graduate diploma and degree programmes offered by IIM Bangalore became exempt from GST under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Analysis: The exemption structure distinguished between the general entry for services provided by an educational institution and the special entry for specified IIM programmes. Before the IIM Act, 2017, IIMs were not institutions providing education as part of a curriculum for obtaining a qualification recognised by law, but once the Act came into force and empowered IIMs to confer degrees, they answered the definition of educational institution in clause 2(y) of the notification. From that date, the long duration programmes became eligible under the general exemption entry. The existence of the special IIM entry did not prevent the assessee from claiming the more beneficial exemption where both entries were available during the overlap period.

Conclusion: In favour of the assessee. The long duration post graduate programmes were exempt under Sl. No. 66 from 31.01.2018, and during the overlap period the assessee could choose either Sl. No. 66 or Sl. No. 67.

Issue (ii): Whether supply of online educational journals or periodicals to IIM Bangalore became exempt from GST or IGST, including under reverse charge, after IIM Bangalore acquired the character of an educational institution.

Analysis: Once IIM Bangalore qualified as an educational institution, receipt of online educational journals or periodicals from a supplier located in a non-taxable territory fell within Sl. No. 10 of Notification No. 09/2017-Integrated Tax (Rate) dated 28.06.2017. For domestic supplies, the corresponding exemption applied under the intra-State exemption entry for supply of online educational journals or periodicals to an educational institution.

Conclusion: In favour of the assessee. Online educational journals and periodicals received from a non-taxable territory were exempt, and the corresponding domestic supply exemptions also applied.

Final Conclusion: The advance ruling was set aside and the appeal succeeded on both questions, recognizing IIM Bangalore as an educational institution after the IIM Act, 2017 came into force and extending the relevant GST exemptions accordingly.

Ratio Decidendi: Once an institution acquires the statutory power to confer qualifications recognised by law, it falls within the exemption definition of educational institution, and where overlapping exemptions exist, the assessee may claim the more beneficial one.

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