AAR dismisses advance ruling application as withdrawn after applicant's contract with Gujarat University ends

AAR Gujarat dismissed the applicant's advance ruling application as withdrawn. The applicant sought withdrawal after their contract with Gujarat University was not renewed, requesting to rely on precedent cases from Karnataka and Maharashtra AARs. The application concerned GST exemption under Entry No. 66 of Notification No. 12/2017-Central Tax (Rate) for educational services provided in affiliation with Gujarat University. The rectification application dated 9.10.2020 became infructuous following the withdrawal.

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Issues:
Classification of services provided by the applicant in affiliation with Gujarat University under Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017.

Analysis:
1. Educational Services Provided by Applicant:
The applicant is engaged in providing specified educational services in the field of Information Systems Education in partnership with Gujarat University. The applicant designs courses, provides training, and assists in the admission and fee collection process. The examination is conducted by the University, and degrees are awarded by Gujarat University upon successful completion.

2. Exemption Claim under Notification No. 12/2017:
The applicant claimed exemption from GST under Entry No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017. The exemption covers services provided by educational institutions up to higher secondary level. The term "educational institution" includes entities offering education for qualifications recognized by law.

3. Advance Ruling Decision:
The Gujarat Authority for Advance Ruling (GAAR) held that the applicant's services did not qualify for the exemption as they did not have a specific curriculum, conduct examinations, or award qualifications. The GAAR concluded that the applicant did not meet the criteria of an educational institution as per the notification.

4. Appeal and Remand by GAAAR:
The applicant appealed to the Gujarat Appellate Authority for Advance Ruling (GAAAR), citing procedural irregularities and seeking reconsideration. The GAAAR remanded the matter back to GAAR for a fresh decision, considering the appellant's additional plea and procedural lapses in the initial ruling.

5. Final Ruling and Dismissal:
The matter was reconsidered, and the applicant requested to withdraw the appeal citing non-renewal of the contract with Gujarat University and legal precedents. The Authority dismissed the application as withdrawn, rendering the rectification request irrelevant.

In conclusion, the judgment addressed the classification of educational services provided by the applicant in affiliation with Gujarat University under the relevant GST notification. The rulings emphasized the criteria for exemption under the notification and the specific requirements for entities to qualify as educational institutions for GST purposes. The final decision dismissed the application as withdrawn based on the applicant's request and subsequent developments.

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