GST exemption for educational services denied where private training and support work did not itself lead to a legally recognised qualification.

Entry No. 66 of Notification No. 12/2017-Central Tax (Rate) exempts services supplied by an educational institution to students, faculty and staff, and the exemption turns on whether the service forms part of education leading to a qualification recognised by law. The Gujarat AAR found that the applicant's activities in affiliation with Gujarat University were mainly training, curriculum support and admissions-related work, while the applicant did not itself conduct examinations or award the qualification. Those services were therefore treated as private training and support services, not exempt education services supplied by an educational institution. GST exemption was denied.

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Issues: Whether the services provided by the applicant in affiliation with Gujarat University and used for degree courses under the university-approved curriculum are exempt from GST under Entry No. 66 of Notification No. 12/2017-Central Tax (Rate).

Analysis: Entry No. 66 exempts services provided by an educational institution to its students, faculty and staff, and the notification defines an educational institution as one providing education up to higher secondary level, education as part of a curriculum for obtaining a qualification recognised by law, or approved vocational education. The decisive test is whether the service is itself part of a curriculum that results in a legally recognised qualification. On the facts, the applicant mainly designs and conducts training, manages curriculum support and admissions-related work, but does not itself conduct examinations or award the qualification. The activity was therefore treated as training by a private entity rather than education supplied by an educational institution.

Conclusion: The services are not exempt under Entry No. 66, and the issue is answered against the applicant.

Final Conclusion: GST exemption was denied because the applicant did not qualify as an educational institution supplying exempt education services within the meaning of the notification.

Ratio Decidendi: Exemption under Entry No. 66 applies only where the supplier is an educational institution providing education that forms part of a curriculum leading to a qualification recognised by law; training or support services by a private entity that does not itself award the qualification do not qualify.

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