TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 633
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 training of teachers or administrators. ASSET....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ized 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-CT (rate) dated 28.06.2017 and entry No. 69(b)(iv) of Not. No. 9/2017-Integrated Tax (Rate) dated 28.06.2017 as well as equivalent SGST Notification.' Applicant's Interpre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 law for the time being in force; (iii) education as a part of an approved vocational education course; 4.6 The applicant submitted that on perusal of the above mentioned Entry No. 66, it is o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nation 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 a direct significance as well as an indirect significance depending on the context." 7. The applicant has submitted Flyer No. 40 (Education Service) issued by the CBIC provides the clarification that the auxiliary servic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her, 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 education services are provided to educational institutions providing degree or higher education, the same would not be exempt. For instance, the services of conducting admission tests for admission to colleges in case of educational institutions ar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ucation 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 subclass includes: - non-instructional services that support educational processes or systems, such as; * educational consulting * educational guidance counselling services * educational testing evaluation services * educational testing services * organization of student exchange programmes 7.6 The applicant submitted that thus in view of the above the services provided by the Applicant falls under the category of the education support services as it is providing educational testing evaluation/ education testing services. Fu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 various subjects which are set by us based on the class level, board (like state or CBSE or ICSE etc) and the methodology adapted by the school for teaching. These set of questions are either provided in hard copy or also through online mode. * Under ASSET we do not provide any pre or post exam teaching to the students. Once the class takes the test under ASSET we evaluate the answers and provide student wise and class wise results. The exam is conducted at school and based on 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. This is confirmed by the agreement cum application form for ASSET....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 breakeven point. But nowadays strength of individual classes is below 50 students, but if such school has other branches of school of the same school group then we allow to order less than 50 ASSET order of particular School but in totality the student count has to be more then 50, but here also it is mandatory for the schools to take ASSET for entire class as a whole. * Further, we would also like to mention that we are providing ASSET service to Schools and contract for the same is with Schools only, not with students. No. of Students is only medium of calculation as we charge amount from School based on number of student in each class/school. 2. ASSET program offered other than schools:- * A part from ASSET offering to Schools, we are offering "ASSET Retail" program online whereby we are ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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, Azim Premji Foundation and is doing large scale assessment projects with various state Govts. 14. The applicant, among other services, has been providing services relating to ASSET (Assessment of Scholastic Skills Through Educational Testing) to schools. The School uses ASSET for the purpose of diagnostic assessment of its students. It is a scientifically designed, skill-based assessment Exam. It contains multiple-choice question to focus on measuring how well SKILLS and CONCEPTS have been understood by the students. The basic 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....elow: (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 and staff; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any midday meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; up to higher secondary: 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. NIL NIL 18.1 The said Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 has been amended vide clause (o) of Notification No. 2/2018-Central Tax (Rate) dated 25.01.2018. After such amendment, the said Sr. No. 66 of Notification....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation 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 Standard. Therefore, such schools are already covered under the definition of 'Educational Institution', as provided under sub-clause (i) of clause (y) of Paragraph 2 of the said Notification No. 12/2017-Central Tax (Rate). We find that schools are providing education to the students up to higher secondary standard and therefore fall under the definition of Educational Institution as defined vide clause (y) of Paragraph 2 of the said Notification. In this regard, we refer to a sample copy of agreement held between applicant i.e. Educational Initiative and B R Birla Public School, Jhawar Road, Jodhpur submitted by the applicant. Upon perusal of the said agreement and web site of said School http://brbirlaschool.org/, it is observed that the said school is providing education up to Higher Secondary and affiliated to Central Board of Secondary Education (CBSE). Further, the terms and condition of the said agreement reveal that the applicant has made an agreement with School for supply of ASSET multi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 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 Court that the expressions "in relation to" is a very broad expression and has a very wide meaning, it pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context. The term "relating to" has been held to be equivalent to or synonymous with as to "concerning with" and "pertaining to". Exemption entry uses this term 'relation to' and therefore we are of the opinion that any service provided which helps the education institution in its act of examination will be covered and shall be eligible for exemption from levy of GST. 21.3 Further, GST flyer 40 dated 1.01.2018 was issued for explaining taxability of education sector where the issue of taxability of auxiliary services procured by educational institutions was clarified as under: "Education is fundamental to the nation building process. Right to Education is now a fundamental right of every child in India. GST Law recognises this and....