TaxTMI 
TaxTMI 
2018 (10) TMI 301
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....CMAS (Universal Concept Mental Arithmetic System) is a product of UC International Corp., headquartered in Kuala Lumpur, Malaysia and the UCMAS Education Group Malaysia has awarded the National Franchisee for the whole of India to the applicant. It is submitted that UCMAS is a progressively leveled program, wherein students in the age group of 4 to 13 years join in and take about 3 years to complete the program. There are ten levels in the Basic program route (Basic, Elementary A & B, Intermediate A & B, Higher A & B, Advance, and Grand A & B). For those joining the KG program route there are 12 levels (KG 1 to 4, Elementary B, Intermediate A & B, Higher A & B, Advance, Grand A & B). Each level is of approximately 3 months and students need to come to the center once a week for a 2 hour session. They need to practice for about 30 minutes daily when they are home for the next 6 days. 2.2 It is submitted that UCMAS is a child development program based on Visual Arithmetic and Abacus that boosts brainpower in children aged 4-13 years. Along with strengthening math skills, the UCMAS approach promotes whole brain development and establishes foundational building blocks like memory, con....
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....am that deliver the maximum benefit to the students. With the exciting classes and energetic instructors, the Company ensures that its students have fun as they learn. 3. The applicant has raised the following question for advance ruling - "The activity provided by UCMAS using abacus whether qualifies for exemption from the payment of GST?" 4.1 The applicant has submitted that as mentioned in Sr. No. 34 containing Heading 9996 in Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017 issued by the Central Government, in exercise of the powers conferred by sub-section (1) of Section 9, sub-section (1) of Section 11, sub-section (5) of Section 15 and sub-section (1) of Section 16 of Central Goods and Service Tax Act, 2017, notifies different rates of Central GST applicable to supply of recreational, cultural and sporting services supplied in the course of intra-state supply of the said services. Similarly the levy of State Tax on the said supply is governed by Notification No. 11/2017- State Tax (Rate) dated 30th June, 2017 issued by the Government of Gujarat. Corresponding description finds mention in Notification No. 08/2017-Integrated Tax (Rate) dated 28thJune, 2017 ....
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....ues (can also be referred as an 'Art of Development of Mind'). To elaborate further, it is submitted that UCMAS approach doesn't impart training in a way suiting a particular field like a person undergoing training in cricket to improve his skills to enable him to participate in various levels of tournaments. The ABACUS training program imparted by the applicant under UCMAS approach is mainly to create interest in students for more advance form of mathematics so as to enhance their thinking capacity and mental development. 4.6 The applicant submitted that the entire thing is done by employing methods of play involving Musical, Visual and specialized effects which not only profuse the child with extra imaginary skills but also, refreshes and recreates and creates a feeling of enjoyment and pleasure among the children taking the training so as to make the whole thing interesting. Also, the training provided by the applicant does not in any sense forms the part of compulsory or core education for the students. The training imparted is optional and the child is at discretion, whether to opt for it or just continue with his/her regular studies. 4.7 It is submitted that Recreation shou....
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....ft brain would not stay long, but an image that is recorded in the right brain would stay on in the mind forever. By stimulating the right brain with mental arithmetic, and in combination with the alertness of the eyes, ears and hands, the ability to store and recall develops together. 4.9 From the above, the applicant submitted that Training Activity performed by the company under UCMAS using Abacus is a recreational activity relating to an art and thereby exempt from GST. Hence, the applicant is exempted under GST as per the above explanation and above quoted Notifications under the GST Act. Therefore, the applicant requested for advance ruling in the interest of deciding a common rate of Taxation for both the applicant as well as other subordinate Franchises in the GST Regime. 5.1 In the additional written submission, the applicant referred to Notification No. 9/2003-Service Tax dated 20.06.2003 and Notification No. 24/2004-Service Tax dated 10.09.2004. It is also submitted that the wordings similar to those mentioned at Sr. 80 of Notification No. 12/2017-Central Tax (Rate) and Sr. 83 of Notification No. 9/2017Integrated Tax (Rate) find mention in Sr. 8 of Notification N....
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....re pending for decision. 6.2 It has been further opined by the Vadodara - I Commissionerate that activity of the applicant cannot be called as art. As per oxford dictionary, 'art' is the expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power. Thus, Art is commonly used to describe something of beauty, or a skill which produces an aesthetic result. 6.3 It has been opined by the Vadodara - I Commissionerate that the activity performed by the applicant is a form of education imparted to the children to develop their interest and skills in mathematics and hence it is an education support service. It is submitted that it is not a system purely based on 'abacus', which is used to teach counting numbers to the children of pre-primary education, because the age group of children which are imparted education by the applicant are from 4-13 year and this range cannot belong to children of pre-primary schooling. 6.4 It has been further informed that the 'Educational Support Service' is classified under SAC 999294. It is submitted that the sect....
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....y meaning, 'Art' is the expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power. 9.4 The improvement of speed and accuracy of calculations or development of mental capabilities, such as, concentration, observation, visualization, imagination and memory cannot be said to fall within the meaning of 'Art'. 9.5 It will also be useful to refer to services covered under Heading 9996 - 'Recreational, Cultural and sporting services' and more specifically Group 99962 - 'Performing arts and other live entertainment event presentation and promotion services' and Group 99963 - 'Services of performing and other artists' as per the scheme of classification of services prescribed vide Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, which are reproduced below. Heading & Group Service Code (Tariff) Service Description Heading No.9996 Recreational, cultural and sporting services Group 99961 Audiovisual and related services ......... Group 99962 Performing arts and other live enterta....