AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 633
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....gle, Azim Premji Foundation and is doing large scale assessment projects with various state Governments. 2.1 Among others, one of the offering offered by the Applicant to the schools is ASSET (Assessment of Scholastic Skills Through Educational Testing). The Schools use ASSET for the purpose of assessment, ASSET has gained the wide acceptance across the schools for the purpose of diagnostic assessment of its students. The detailed description is mentioned here in below: ASSET 2.2 ASSET stands for Assessment of Scholastic Skills Through Educational Testing. It is a scientifically designed, skill-based assessment Exam. Rather than testing rote learning, it uses multiple-choice question to focus on measuring how well SKILLS and CONCEPTS have been understood by the students. The basis nature of ASSET service is an examination to be conducted by Education Institution (School) but outsourced to the Educational Initiatives (EI). The assessment generates examination reports for students, indicative of their progress and topics that require attention and improvement. ASSET is an educational assessment exam taken at school and it does not envisage any kind of coaching and/or trainin....
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....oints out learning gaps for each students, overall strengths and weaknesses and recommendations to address these. 2.8 The applicant further submitted that customized reports help in determining the strengths and weaknesses of the entire class to enable further improvement, indicates the improvement in the school performance each year, provides sectional analysis of each division of a grade in order to weigh the performance in comparison to other divisions in the same school as well nationally. 2.9 The applicant further submitted that the ultimate users/ beneficiaries of the applicant services are the students of primary and secondary schools, educational institutions, state / central for the purpose of framing public policy in connection with education. These solutions are focused on improving the learning levels of the child in the private schools and government school system. 3. Accordingly, the applicant sought the Advance Ruling on the following, 'Whether the educational assessment examination (ASSET) with its variants) provided by the applicant to school/educational organization is exempted from payment of GST under Sr. No. 66(b)(iv) of the Not. No. 12/2017-C....
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....upply of online educational journals or periodicals; Provided that nothing contained in sub-items (i), (ii), and (iii) of item (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent Provided further that nothing contained in sub item (v) of item (b) shall apply to an institution providing services by way of- (i) pre-school education and education up to higher secondary school or equivalent: or (ii) education as a part of an approved vocational education course; Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. 4.5 Term 'Educational Institution' is defined in point No. 2 of the same Notification, it reads as under: y) "educational institution" means an institution providing services by way of,- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by any ....
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.... qualification or knowledge of student would fall under meaning of examination by the educational institution. In the instant case, applicant is providing contents to the school for conducting examinations and after examination provides reports on performance of students. These reports are used by the schools for evaluation of the students. Thus in view of the above, it is submitted that the service provided by the applicant is in relation to conduct of examination. 6. The applicant has submitted that the term "relating to" expands the scope of the entry. The terms have been interpreted by the Supreme Court in the case of CCE V/s Rajasthan State Chemical Works 1999(55) ELT 444 (SC) and Union of India V/s Ahmedabad Electricity Co. Ltd. 2003(158) ELT 3(SC), wherein it has been held that such words widen and expand the scope, meaning and content of expressions. Further, applicant submitted that Hon'ble Supreme Court in case of M/s. Doypack Systems (P) Ltd. Vs UOI 1988 (36) ELT 201 SC held that, "The expression "in relation to" (so also "pertaining to"), is a very broad expression, which pre-supposes another subject matter. These are words of comprehensiveness which might both have ....
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....st of the important input services. Some of the input services like transport, canteen etc. provided by private players to educational institutions were subject to service tax in pre-GST era and the same is continued in GST regime. 7.2 Further, applicant submitted that Flyer on GST on education service also provides that auxiliary services are exempted from GST. Relevant part is extracted and reproduced as under: Regarding, input services, it may be noted that where output services are exempted, the Educational institutions may not be able to avail credit of tax paid on the input side. The four categories of services known as Auxiliary Education services, which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, have been exempted (as per Notification No.12/2017- Central Tax (Rate)). Auxiliary education services other than what is specified above would not be entitled to any exemption. The exemption also comes with a rider. Such services are exempt only for educational institutions providing services by way of education upto higher secondary or equivalent. (from pre-school to HSC). Thus if such auxiliary ....
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....duct of examination for admission to educational institutions 602 999299 Other educational support services 7.4 The applicant submitted that the above classification is adopted from the CPC code. As per explanatory to the CPC version 2.21, the entry education service are explained as under: Division 92 Education Service 921 Pre-primary education services 922 Primary education services 923 Secondary education services 924 Post-secondary non-tertiary education service 925 Tertiary education services 929 Other education and training services and Educational support services 9291 Other education and training services 92911 Cultural education services 92912 Sports and recreation education services 92919 Other education and training services 7.5 Further, applicant submitted that the explanatory note to the Education support services includes testing education services and testing services. The relevant part of the CPC is extracted and reproduced as under: 9292 Educational support services 92920 Educational support services This su....
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....SSESSMENTS (LSA):- • LSA itself suggests its meaning, large scale educational testing/ assessment. Basically it is educational research projects which includes Research activities. Generally such services are provided to an organizations / agencies who wants to evaluate the Students / teachers / educators on a large scale • to create knowledge at larger social level; activities 'commissioned' by various agencies with the specific intent of providing them with insights regarding their own programmes and their performance, by evaluating the students/ teachers/ educators. • The service provided under this segment is a combination of assessment, examination, training and coaching/ consultation. • We are charging and paying GST @ 18% on the said services provided to the various clients except in a case where it qualifies the conditions of export of service. B. ASSESSMENT OF SCHOLASTIC SKILLS THROUGH EDUCATIONAL TESTING. (ASSET) :- • ASSET is an examination tool for educational assessment of students in class 3-10 in schools across India and outside India. • Under ASSET we provide a set of questions on vario....
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.... the school has to categorically mention following 2 details: A. Participation Details - Full School (All Classes) OR Full Class /Classes B. Classes Taking ASSET - _____ School has to choose whether they are taking ASSET for full school or for a particular class, here there is no option to select it for some students only. Hence it is clear that that ASSET is given to either a full class or to full school, it cant be bought for individual students. School also has to give details as to for which classes it is taking ASSET. • As per Clause 6 of the agreement, we have kept limit of minimum 50 students for a school. In other words if a school wishes to take ASSET for one of its class which has only 40 students then we will not serve them because it is not cost effective for us to design questions bank for them at that level. But this nowhere means that if a school who has say 60 students in a class can choose to take ASSET only for 50 of the students of that class. If they wish to take ASSET then they will have to take it for all 60 students. We have kept limit of 50 ASSET order, otherwise it's difficult for us to reach at economical break....
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.....06.2017." Personal Hearing : 11. Shri Nitesh Jain, Charted Accountant duly authorized representative of the company appeared and re-iterated the submission made in the Application. Discussion and Finding 12. We have considered the submissions made by the Applicant in their application for advance ruling as well as additional submission submitted vide letter dated 22.06.2020. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 13. The applicant has stated that they deal in the products and solutions mainly intended to be used by K-12 education segment i.e. primary and secondary schools for the assessment and learning. The applicant is working with private schools, public schools and leading organization like World Bank, Michael and Susan Dell Foundation, Google....
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....n their internal policy, all schools make ASSET mandatory for evaluation of the student and ASSET results are included in the overall evaluation system of the school; that the same is confirmed by the agreement cum application form for ASSET also. 17. The applicant's contention is that ASSET, as an examination tool provided to the educational institution i.e. Schools is a services relating to conduct of examination by educational institution and it is exempted under Sr. No. 66 of Not. No. 12/2017-C.T. (Rate) dated 28.06.2017. Therefore, the issue is to be examined, whether the ASSET Examination tool including multiple question paper (both Physical and online) provided by the applicant to Schools is eligible for exemption under Sr. 66 of Not. No. 12/2017-CT (Rate) dated 28.06.2017, as amended or otherwise. 18. Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 reads, as below: (1) (2) (3) (4) (5) SI. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 66 Heading 9992 Services provided - (a) by an educational institution to its students, faculty a....
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....; or (ii) education as a part of an approved vocational education course. NIL NIL 18.2 The term, 'Educational Institution' has been defined vide clause (y) of Paragraph 2 of the said Notification No. 12/2017-Central Tax (Rate), as below:- (y) "educational institution" means an institution providing services by way of,- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; 19. In view of above, the applicant has to satisfy following two conditions in order to be eligible for exemption under Sr. No. 66(b)(iv): (i) The recipient of the services should be 'Educational Institution' as defined under the clause (y) of Paragraph 2 of the said Notification No. 12/2017-Central Tax (Rate). (ii) the supply of service should be in relation to the examination conducted by the educational institution. 20. We find that the applicant has stated that they are supplying "ASSET" multiple question to the Schools for the students of 3rd to 10th Stand....
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.... Education Institution (School) but outsourced to the Educational Initiatives (EI). We also find from the submissions of applicant that ASSET is an educational assessment exam taken at school and it does not envisage any kind of coaching and/or training of teachers or administrators. We also find that applicant has submitted that the exam is conducted at school and schools, based on their internal policy, make ASSET a part of their evaluation system. They also give student wise appropriate weightage to ASSET score. In view of above, we find that under ASSET, they provide a set of questions on various subjects which are set by them based on the class level, board (like state or CBSE or ICSE etc) and the methodology adapted by the school for teaching. We find from the sample copies of agreements submitted by the applicant that they make contract with the Schools for supply of ASSET multiple questions of various subjects to their students. 21.2 Term, 'in relation to' has been a matter of discussion in many judgements, Applicant has relied upon the Supreme Court judgement in the case of Doypack Systems (P) Ltd Vs UOI 1988 (36) ELT 201 SC, wherein it was held by the Hon'ble Apex Cour....