School Conference Services Taxed Under GST, ITC Available for Some

The school's consideration for the conference was held not exempt under any relevant entry of Notification No. 12/2017-Central Tax (Rate) and is subject to GST. Services for the conference are taxed at applicable rates without ITC for catering (5%) and with ITC for other services. The determination of the place of supply falls outside the AAR's jurisdiction. Exemptions for service providers to educational institutions up to higher secondary do not apply to conference services. ITC is unavailable for food services but available for other services per GST provisions.

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Issues Involved:
1. Exemption of consideration received by the school for the conference under various entries of Notification No. 12/2017-Central Tax (Rate).
2. Appropriate category and tax rate if not exempted.
3. Place of supply for such services.
4. Availability of exemptions for service providers of catering, security, cleaning, housekeeping, transportation to the Applicant for the conference.
5. Eligibility of Input Tax Credit (ITC) for input services availed for the conference.

Detailed Analysis:

Issue 1: Exemption of Consideration Received by the School
The Applicant sought clarification on whether the consideration received for the conference would be exempt under Entry No. 66, Entry No. 1, or Entry No. 80 of Notification No. 12/2017-Central Tax (Rate). The Authority clarified that:
- Supply of all services to an educational institution is not exempt; only specified services are.
- Entry 1 pertains to services by an entity registered under Section 12AA of the Income-tax Act by way of charitable activities, which is not applicable to the Applicant.
- Entry 80 pertains to services by way of training or coaching in recreational activities relating to arts, culture, or sports by charitable entities registered under Section 12AA of the Income-tax Act, which is also not applicable to the Applicant.
- Entry 66 pertains to services provided by an educational institution to its students, faculty, and staff. However, the activities of holding an educational conference for students and staff of other schools do not fall under this category.

Issue 2: Appropriate Category and Tax Rate
The Authority opined that various services provided for organizing the conference would be liable to tax at the rate applicable to the respective services. For example, catering services would be taxed at 5% without eligibility for ITC, and security or cleaning services would be taxed at 18%.

Issue 3: Place of Supply
The Authority stated that determining the place of supply is beyond the jurisdiction of the Advance Ruling Authority (AAR).

Issue 4: Availability of Exemptions for Service Providers
The Authority concluded that exemptions provided to service providers of catering, security, cleaning, housekeeping, transportation, etc., to an educational institution up to higher secondary would not be available for services provided for the conference.

Issue 5: Eligibility of Input Tax Credit (ITC)
The Authority clarified that no ITC would be available on food and catering services as the tax rate is 5% without ITC. ITC for other services would be available as per the provisions of the GST Act and the Rules.

Ruling:
1. The consideration received by the school for the conference is not exempt under Entry No. 66, Entry No. 1, Entry No. 80, or any other entry of Notification No. 12/2017-Central Tax (Rate) and is chargeable to GST.
2. Various services provided for organizing the conference will be taxed at the rate applicable to the respective services.
3. Determining the place of supply is beyond the jurisdiction of AAR.
4. Exemptions for service providers to an educational institution up to higher secondary are not available for services provided for the conference.
5. ITC is not available for food and catering services; ITC for other services is available as per GST provisions.

This ruling is valid subject to the provisions under section 103(2) until declared void under Section 104(1) of the GST Act.

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