AAAR Rajasthan sets aside GST exemption ruling for Board of Secondary Education examination services

The AAAR Rajasthan set aside the AAR ruling dated 17.06.2022 regarding GST exemption for services provided to Board of Secondary Education for conducting examinations. The appellate authority noted that AAR Rajasthan failed to consider the Calcutta HC judgment in M/s Anmol Industries Ltd. case, which had remanded a similar matter back to AAR for decision on merits. The AAAR remanded the matter back to AAR to decide the application afresh after considering the Calcutta HC precedent and applying settled jurisprudential principles.

---

---

Issues Involved:
1. Whether the services provided by various suppliers to the Board of Secondary Education in relation to conducting examination can be treated as exempted under the provisions of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
2. Whether the Authority for Advance Ruling (AAR) erred in dismissing the application on the ground that the appellant is not a supplier of goods or services.

Summary:

Issue 1: Exemption of Services Provided to Board of Secondary Education
The appellant, Board of Secondary Education, sought a ruling on whether services such as printing of answer sheets, online examination form filling, and annual maintenance of computers used for examination, among others, can be treated as exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The appellant argued that these services are exempt as per the notification read with Circular No. 151/07/2021-GST dated 17th June 2021. The AAR, Rajasthan, however, did not entertain the application, stating that the appellant is the recipient of services and not the supplier, thus falling outside the purview of Section 95 of the CGST Act, 2017.

Issue 2: Definition and Scope of 'Applicant'
The appellant contended that the AAR erred in law by dismissing the application on the ground that the appellant is not a supplier. They argued that the definition of "applicant" under Section 95 of the CGST Act, 2017, includes any person registered or desirous of obtaining registration under the Act, which encompasses the Board of Secondary Education. The appellant further cited the judgment of the Hon'ble High Court, Calcutta in M/s Anmol Industries Ltd. v/s West Bengal Authority for Advance Ruling, Goods and Service Tax, where it was held that the term "applicant" is broad and includes registered persons seeking a ruling on the applicability of an exemption notification.

Discussion and Findings:
The appellate authority observed that the AAR, Rajasthan, did not consider the broader interpretation of "applicant" as defined by the Hon'ble High Court, Calcutta. The court held that the term "applicant" includes any person registered under the GST law, and the appellant's application falls within the scope of Section 97(2)(b) of the CGST Act, 2017, as it seeks a ruling on the applicability of an exemption notification.

Order:
The appellate authority set aside the ruling of the AAR, Rajasthan, dated 17.06.2022, and remanded the matter back to the AAR to decide the application afresh after considering the judgment dated 21.04.2023 of the Hon'ble High Court, Calcutta in the case of M/s Anmol Industries Ltd. v/s West Bengal Authority for Advance Ruling, Goods and Service Tax.

---