TaxTMI 
TaxTMI 
2022 (10) TMI 774
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....xamination services to the main contractor who in turn provides the said services to the Educational Boards and Universities (including Open Universities)? I. Statement of relevant facts submitted by the applicant having a bearing on the question(s) raised: 1. M/s. Magnetic Infotech Private Limited (hereinafter referred to as "Applicant") is engaged in providing pre and post examination services to the Educational Boards, Universities and Open Universities (hereinafter referred to as 'Educational Institutions'). 2. The applicant has entered into agreements with various educational institutions located in different States such as Board of Secondary Education, Telangana, Board of Intermediate Education, Telangana, Board of Secondary Education, Andhra Pradesh, Board of Intermediate Education, Andhra Pradesh, Osmania University, Hyderabad, JNTU, Hyderabad, Dr. BR Ambedkar Open University, Hyderabad, Swamy Ramanand Teerth Marathwada University, Nanded, Maharashtra and Yeshwantrao Chavan Maharashtra Open University, Nasik, Maharashtra. Copies of the agreements entered by the applicant with State Education Boards and Universities (including open universities) are enclosed as An....
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....ners, PCs along with Printers, Modems, UPS, etc. The secured office area and power will be provided by the DGE, Telangana. The activities under data processing would inter alia include the following. * Data entry and verification of the student details with the validation rules given by DGE * Printing of checklists until data is proved to be accurate and error free and approved by DGE. * Preparation of data for hosting of hall ticket numbers with photo in the website. * Maintenance of updated data in the server. The applicant should supply CDs/DVDs after completion of processing at every stage as per the directions of the DGE from time to time, Results Preparation: * Generation of various output reports at different stages as prescribed by DGE. * Preparation of data for hosting of results in the website. Input from DGE, Telangana and Output from the applicant: The DGE, Telangana shall supply the following documents/information to the applicant i. OMR cum ICR forms for scanning ii. Schools list iii. Centre/School Master iv. OMR award sheets for scanning v. Control bundle slips vi. Marks strips for data entry of marks vii. Any other important record ....
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....n server for on-screen evaluation with security features along with internet bandwidth. iii) The University shall identify the evaluation centres with prescribed infrastructure as per the requirement of the university such as work stations, software, UPS, sufficient internet bandwidth, Generator backup and security features, furniture, LAN, etc. iv) The University shall identify the list of evaluators and also issue the intimation letters with the schedule to the examiners for On-screen evaluation. v) The University shall provide the list of evaluators to the applicant incharge for mapping the scripts to the evaluators. Responsibilities of the applicant: i) The applicant shall provide the infrastructure such as scanning servers, workstations and book scanners for scanning of answer books at the University scanning centre as per the requirement. ii) Applicant shall maintain work flow management from receiving the answer script bundles from the examination centres, accounting the answer scripts, reconciliation with attendance received. iii) The applicant shall scan and digitize the answer scripts, maintain time schedules as required by the University with proper control....
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....ets, pass certificate, migration certificate and convocation certificate data in PDF format, etc. as per the formats given by the Open University for printing 10. The applicant is claiming exemption from payment of GST in respect of the services being provided to the Education Boards and Open Universities under the heading 9992- 'services provided to an educational institution by way of services relating to admission to, or conduct of examination by, such institution' as per SI. No. 66(b)(iv) under the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended (hereinafter referred to as 'NN-12/2017'). However, in respect of pre and post examination services being provided to Universities, the applicant is not claiming GST exemption. II. Statement containing the applicant's interpretation of law based on the facts, in respect of the aforesaid questions: 11. That Section 97(2) of the Central goods and Service Tax Act, 2017 (hereinafter referred to as 'CGST Act), enables an application to be filed for advance ruling on any of the following questions: a. Classification of any goods or services or both; b. Applicability of a notification issued u....
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....s to educational institutions, the applicant is of the understanding that as the services in relation to conduct of examination by the educational institutes are exempted, in this case also the services are in relation to conduct of examination by educational institutions which are ultimately provided to educational institute, therefore, exemption would also be available to the applicant even though the services are provided on sub-contract basis. Applicable provisions: Notification No. 12/2017-Central (Rate) dated 28.06.2017 as amended (NN 12/2017) 17. NN-12/2017 provides the list of exempted intra state supply of services. Similar notification has been issued under the Telangana State GST Act, 2017. 18. The relevant entries under NN-12/2017 have been reproduced below: Sl.No. Chapter, Section or Heading Description of Services (1) (2) (3) 66 Heading 9992 or Heading 9963 Services provided - (a) by an educational institution students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; (b) to an educational institution, by way of - (i) transportation of students, f....
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....clude the following: I. Pre-Examination Work: - Constitution of examination centres and zones - Jumbling of candidates - Supply of clean copy of school wise and centre wise nominal rolls - Printing of hall tickets - Centre/zone master printing - Centre wise roll number ranges with buffer numbers - School wise number of candidates in 2 or 3 rounds for verification and updation - Printing of attendance sheets with photos centre wise - Question paper packing statements day wise, centre wise, district wise II. Post Examination Work: - Feeding of School NR and Centre NR additions - Checklists, updating of corrections - Serios error reports and updating of corrections - Supply of CNR Additions, corrections and deletions updated reports - Data entry of absentee cases - Feeding of OMR bar-code sheets - Printing of memo of marks 24. The applicant submits that in case of State Education Boards, the schools/colleges are affiliated to the State Education Boards and the said schools/colleges impart education to the students. However, the State Education Boards conduct the examinations and issue memo/certificate to the students. 25. In case of Universities, ....
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....SCC 615], the Supreme Court held that the examination is always considered as one of the major means to assess and evaluate candidate's skills and knowledge be it a school test, university examination, professional entrance examination or any other examination. Candidate's fitness for his further assignment, whether in studies or employment is, therefore, judged on the basis of his performance in the examination. It is for this reason, the examination is considered as a common tool around which the entire education system revolves. 34. Further, the applicant also refers the decision of Hon'ble Gujarat High Court in the case of M/s. Sahitya Mudranalaya Private Limited vs. Additional Director General [2021 (46) GSTL 245 (Guj.)]. In this case, the Gujarat High Court has inter alia dealt with the issue as to whether the state education board, state technological university and state council of examination are educational institutes or not. The department contention was that the Board/University work more like a managerial organization to plan the syllabus of education and conduct of examination for the institutes affiliated under them and they are functioning as organizati....
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....y way of education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force. 36. As per the Sl. No. 66(b)(iv) of the NN - 12/2017, exemption is available to a service provider if the following two conditions are satisfied. 1. Services are provided to an educational institution; and 2. The said services are relating to admission to, or conduct of examination by the educational institutes. 37. In the instant case, the applicant is providing services to Educational Boards, Universities and open Universities. Services provided to Educational Boards: 38. The applicant is providing pre and post examination services to State Educational Boards such as Board of Secondary Education, Telangana, Board of Intermediate Education, Telangana, Board of Secondary Education, Andhra Pradesh, Board of Intermediate Education, Andhra Pradesh. 39. As per the explanation no. (iv) to the NN-12/2017, Central and State Education Boards shall be treated as educational institutions for the purpose of providing services by way of conduct of examination to the students. 40. The applicant also submits that after introduction of GST, certain doubts were ra....
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....le Madras High Court in the case of Madurai Kamaraj University Vs. Joint Commissioner, Office of the Commissioner of GST and Central Excise, Madurai [2021-VIL-639-MAD ST). In this case, the High Court held that holding or conducting an examination is primarily a job of the university and the colleges affiliated to the university are only facilitators. The relevant extract of the said judgment is reproduced below. Holding or conducting an examination is primarily a job of the university and the colleges affiliated to the university are only facilitators. Therefore, examinations are not conducted directly by the colleges, it is being conducted by the university, but the facilitator is the college. Therefore, the word "conduct of examination by such institution" means, conduct of examination by the university and the college and not by the college alone. The examination is the examination of the university, for which, facilitation is given by the college, wherein the examinations are conducted and ultimately, valuation is to be done by the university and marks are awarded and degree is conferred by the university. Therefore, it is the university, where, the facilitator is the colleg....
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....to Universities, the entry under SI. No.66(b)(iv) of the NN-12/2017 will make redundant as exam related services are provided only to Universities. Open Universities: 56. With respect to the pre and post examination services being provided to the open Universities, the applicant submits that the students are registered with open universities and the said universities directly interact with the students, provide study material, impart education, conduct examinations and grant degree/certificate to the students. 57. Thus, the applicant submits that Open universities are imparting education to the students as a part of a curriculum for obtaining a qualification recognized by law. Accordingly, the Open universities qualify as educational institutions. 58. Further, the services being provided by the applicant to the Open universities are in relation to conduct of examinations and grant of certificates to the students by the said universities. 59. Thus, in case of supply of pre and post examination services to Open Universities also, two conditions viz. services are provided to educational institution and the said services are in relation to conduct of examinations by the educationa....
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....re covered under Sl. No.66(b)(iv) of the NN-12/2017 and eligible for exemption from payment of GST. * Orient Press Limited, AAR, Maharashtra (2019-VIL-169-AAR] * Edutest Solutions Private Limited, AAR, Gujarat [2018-VIL-195-AAR] * Manali Enterprise, AAR, West Bengal [2018-VIL-178-AAR] * KL Hitech Secure Print Ltd, AAR, Telangana [2018-VIL-185-AAR] * Hitech Print Systems Ltd, AAR, Andhra Pradesh [2021-VIL-296AAR] * Sahitya Mudranalaya Pvt Ltd, Gujarat [Special Civil Application No. 20748 of 2018] * Madhurai Kamaraj University, Tamil Nadu [2021-VIL-639-MAD-ST] Copies of the High Court Judgements and Advance Ruling orders relied by the applicant are enclosed as Annexure - IV. Services provided on sub-contract basis: 64. The applicant submits that as per Sl. No. 66 of the NN - 12/2017, education services falling under the heading 9992 are exempted from payment of GST. Thus, from the said entry, it is clear that the intention of the Government is to provide exemption from payment of GST in respect of supply of various services to educational institutions. The reason being, services provided to educational institution should not be burdened with the GST component as the....
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....07/2021-GST CBIC- 190354/36/2021, dated:17.06.2021 and issued clarification regarding activities falling under serial no. 66 of Notification No. 12/2017. Accordingly, the following services supplied by an educational institution are exempt from GST vide Serial. No. 66 of the notification No. 12/ 2017- Central Tax (Rate) dated 28.06.2017, Services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; Similarly, services provided to an educational institution, relating to admission to, or conduct of examination is also exempt from GST [sl. No. 66 (b)(iv)-12/2017-CT(r)]. Educational institutions are defined at 2(y) of the said notification as follows- "(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;" Further, cla....
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....s affirmative, whether the exemption is available to the applicant in case of the services provided on sub-contract basis i.e., the applicant provides pre and post examination services to the main contractor who in turn provides the said services to the Educational Boards and Universities (including Open Universities)? Yes. V. The views expressed by Shri B. Raghu Kiran, Additional Commissioner, Central Tax on the issues raised by the applicant are as given below. The CBIC has issued a Circular No. 151/07/2021-GST CBIC- 190354/36/2021, dated:17.06.2021 and issued clarification regarding activities falling under serial no. 66 of Notification No. 12/2017. Accordingly, the following services supplied by an educational institution are exempt from GST vide Serial. No. 66 of the notification No. 12/ 2017- Central Tax (Rate) dated 28.06.2017, Services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; Similarly, services provided to an educational institution, relating to admission to, or conduct of examination is also exempt....