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of <h1>Appellate authority modifies ruling on GST exemption for ASSET assessment by Educational Initiative Private Limited</h1> <h3>In Re: M/s. Educational Initiative Pvt. Ltd.</h3> In Re: M/s. Educational Initiative Pvt. Ltd. - 2022 (60) G.S.T.L. 64 (App. A. A. R. - GST - Guj.) Issues Involved:1. Whether the ASSET assessment examination provided by the applicant to schools/educational organizations is exempt from GST under specific notifications.2. Interpretation of the term 'services relating to admission to, or conduct of examination by, such institution' under Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate).Detailed Analysis:Issue 1: GST Exemption for ASSET Assessment ExaminationThe applicant, M/s. Educational Initiative Private Limited, sought an advance ruling on whether their ASSET assessment examination is exempt from GST under Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) and corresponding state notifications. ASSET is a tool for educational assessment for students in classes 3-10, designed to measure understanding of skills and concepts rather than rote learning. The applicant argued that their service is related to the conduct of examinations by educational institutions and thus should be exempt from GST.The Gujarat Authority for Advance Ruling (GAAR) initially ruled in favor of the applicant, stating that the services provided by the applicant help educational institutions in their act of examination and are therefore eligible for GST exemption.Issue 2: Interpretation of 'Services Relating to Admission to, or Conduct of Examination by, Such Institution'The department appealed against the GAAR ruling, arguing that the applicant’s services go beyond just conducting examinations and include diagnostic assessment and personalized learning, which do not qualify for the GST exemption. The department highlighted that ASSET is an assessment program that evaluates student performance, provides personalized feedback, and offers a series of educational services, which are not limited to the conduct of examinations.The appellate authority examined whether ASSET can be considered an examination conducted by the schools. It was found that:- The question papers and test materials are prepared and printed by the applicant.- The dates for ASSET are fixed by the applicant.- The applicant assesses the answers and prepares the results, not the schools.- The detailed analysis and practice tests provided by the applicant go beyond the scope of merely conducting examinations.The authority concluded that ASSET is conducted by the applicant, not the schools, and thus does not qualify as a service related to the conduct of examinations by educational institutions.Findings:The appellate authority determined that:- The services provided by the applicant in the form of ASSET are not exempt from GST as they do not fall under the scope of 'services relating to admission to, or conduct of examination by, such institution' as specified in Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate).- The entire gamut of activities related to ASSET, including setting question papers, fixing test dates, assessing answers, and providing detailed analysis, is carried out by the applicant, not the schools.Conclusion:The appeal filed by the department was allowed, and the GAAR ruling was modified. The appellate authority held that ASSET conducted by M/s. Educational Initiative Private Limited is not covered under the specified entry of the notification and is therefore not exempt from GST.
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