2022 (5) TMI 1292 - AAR - GST

Pre-school qualifies as educational institution under GST exemption notification for education and related services

In Re: M/s. Rahul Ramchandran (Inspire Academy)

AAR Maharashtra ruled that a pre-school qualified as an educational institution under GST exemption notification. The pre-school received nil GST rate on ... Exemption form GST - Nashik Cambridge Pre-School - supply of Pre-school education service to its students against fee - supply of some goods to its Pre-school students, without any consideration - supply of some goods to its Pre-School students for some consideration - supply of transportation service to tits Pre-school students without any consideration - supply of transportation service to its Pre-school students for some consideration - supply of transportation service to its faculty and staff for some consideration - supply of canteen service to its faculty and staff for some consideration - Applicability of Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28/06/2017. HELD THAT:- In the subject case, the applicant provides services by way of Pre-School education and as per 2(y) (i) above, the applicant i.e. Nashik Cambridge Pre-School can be considered as an 'Educational Institution' - Since, Nashik Cambridge Pre-School can be considered as an 'Educational Institution', services provided by them to its students, faculty and staff attracts NIL rate of GST in view of Sr. No. 66. It is therefore held that, the services provided by 'Nashik Cambridge Pre-School' to its students, faculty and staff attracts is covered under Sr. No. 66 of Notification No. 12/2017-CT, dated 28th June, 2017. Furthermore, 'Nashik Cambridge Pre-school' is also entitled for Nil rate of tax as per Serial No. 66 of the Notification no. 12/2017-CT (Rate) dated 28/06/2017, on the supply of Pre-school education service to its students against fee; on the supply of transportation service to its Pre-school students without any consideration; on the supply of transportation service to its Pre-school students for some consideration ; on the supply of transportation service to its faculty and staff for some consideration and on the supply of canteen service to its faculty and staff for some consideration. Whether 'Nashik Cambridge Pre-school' is entitled for Nil rate of tax is per Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28/06/2017, on the supply of some goods to its Pre-school students, without any consideration? - HELD THAT:- It appears that the applicant will be supplying goods such as: books, stationery, drawing material, sports goods, foods items, milk, beverages to its students without any considerations, as the cost thereof will be covered in the fee charge - it is seen that, the cost of such goods, are included in the education fees charged by the applicant which would imply that the applicant will be supplying the said goods as part of a composite supply comprising of principal supply in the form of educational services and Since, the necessary books, stationery, drawing material, sports goods, foods items, milk, beverages are supplied to its students as a part of such composite supply wherein the principal supply of service is exempted under Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28.06.2017, 'Nashik Cambridge Pre-school' is entitled for Nil rate of tax is per Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28/06/2017, on the supply of the mentioned goods to its Pre-school students, without any consideration. Whether 'Nashik Cambridge Pre-school' is entitled for Nil rate of tax is per Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28/06/2017, on the supply of some goods to its Pre-School students for some consideration? - HELD THAT:- The very fact that the applicant has mentioned that some of the goods mentioned above are also sold by the applicant for some consideration would imply that the said sale of goods are not a part of any composite supply. Therefore, as a standalone supply of goods the impugned activity cannot be covered under Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28/06/2017, which is applicable only in respect of supply of service. Issues Involved:1. Coverage under Notification No. 12/2017-CT, dated 28th June 2017, SI No. 66.2. Entitlement for Nil rate of tax on supply of Pre-school education service against fee.3. Entitlement for Nil rate of tax on supply of goods to Pre-school students without consideration.4. Entitlement for Nil rate of tax on supply of goods to Pre-school students for some consideration.5. Entitlement for Nil rate of tax on supply of transportation service to Pre-school students without consideration.6. Entitlement for Nil rate of tax on supply of transportation service to Pre-school students for some consideration.7. Entitlement for Nil rate of tax on supply of transportation service to faculty and staff for some consideration.8. Entitlement for Nil rate of tax on supply of canteen service to faculty and staff for some consideration.Issue-wise Detailed Analysis:Issue 1: Coverage under Notification No. 12/2017-CT, dated 28th June 2017, SI No. 66The applicant, operating under the trade name 'Nashik Cambridge Pre-school,' qualifies as an 'Educational Institution' as defined in para 2(y) of Notification No. 12/2017-CT (Rate). The services provided by the pre-school to its students, faculty, and staff are covered under SI No. 66 of the said notification, attracting a Nil rate of GST.Issue 2: Entitlement for Nil rate of tax on supply of Pre-school education service against feeThe pre-school is entitled to a Nil rate of tax on the supply of Pre-school education services to its students against a fee. This is because the services provided fall under the exempted category specified in SI No. 66 of Notification No. 12/2017-CT (Rate).Issue 3: Entitlement for Nil rate of tax on supply of goods to Pre-school students without considerationThe pre-school supplies goods such as books, stationery, and other items to its students without consideration, with the cost covered in the fee charged. These supplies are part of a composite supply where the principal supply is the educational service, which is exempt under SI No. 66 of Notification No. 12/2017-CT (Rate). Therefore, the supply of these goods is also entitled to a Nil rate of tax.Issue 4: Entitlement for Nil rate of tax on supply of goods to Pre-school students for some considerationWhen the pre-school supplies goods to its students for some consideration, these transactions are considered standalone supplies of goods and not part of any composite supply. As such, these supplies do not fall under the exemption provided in SI No. 66 of Notification No. 12/2017-CT (Rate) and are not entitled to a Nil rate of tax.Issue 5: Entitlement for Nil rate of tax on supply of transportation service to Pre-school students without considerationThe supply of transportation services to Pre-school students without any consideration is not taxable, as it falls under the definition of services provided by an educational institution to its students, faculty, and staff, which are exempt under SI No. 66 of Notification No. 12/2017-CT (Rate).Issue 6: Entitlement for Nil rate of tax on supply of transportation service to Pre-school students for some considerationThe supply of transportation services to Pre-school students for some consideration is also covered under the exemption in SI No. 66 of Notification No. 12/2017-CT (Rate), attracting a Nil rate of tax.Issue 7: Entitlement for Nil rate of tax on supply of transportation service to faculty and staff for some considerationThe supply of transportation services to the pre-school's faculty and staff for some consideration is entitled to a Nil rate of tax under SI No. 66 of Notification No. 12/2017-CT (Rate), as these services are provided by an educational institution to its faculty and staff.Issue 8: Entitlement for Nil rate of tax on supply of canteen service to faculty and staff for some considerationThe supply of canteen services to the pre-school's faculty and staff for some consideration is also entitled to a Nil rate of tax under SI No. 66 of Notification No. 12/2017-CT (Rate), as these services are provided by an educational institution to its faculty and staff.Order:1. Nashik Cambridge Pre-School is covered under Notification No. 12/2017-CT, SI No. 66.2. The pre-school is entitled to a Nil rate of tax on the supply of Pre-school education services against a fee.3. The pre-school is entitled to a Nil rate of tax on the supply of goods to its Pre-school students without consideration.4. The pre-school is not entitled to a Nil rate of tax on the supply of goods to its Pre-school students for some consideration.5. The pre-school is entitled to a Nil rate of tax on the supply of transportation services to its Pre-school students without consideration.6. The pre-school is entitled to a Nil rate of tax on the supply of transportation services to its Pre-school students for some consideration.7. The pre-school is entitled to a Nil rate of tax on the supply of transportation services to its faculty and staff for some consideration.8. The pre-school is entitled to a Nil rate of tax on the supply of canteen services to its faculty and staff for some consideration.