AI Drafter 
TaxTMI 
TaxTMI 
2022 (10) TMI 774
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....act 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)? 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 Un....
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....icant should arrange sufficient required equipment for scanning of ICR forms & OMR sheets viz. Servers, ICR Scanners, OMR Scanners, 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 ....
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....ding of marks data for result processing Responsibilities of University: i) The University shall provide necessary accommodation, infrastructure, stabilized electric power, power backup, Air conditioning, furniture and other basic facilities like internet bandwidth to carryout the scanning of answer books, storage facility for storing the answer books and transportation of answer books. ii) The University shall provide evaluation 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 th....
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....er blue print of YCMOU time to time and training to the item writers and all concern, QP generation, uploading QP. c) Digital valuation services include pre-CAP, scanning of AB, making available for evaluation, identifying CAP centres as per need throughout Maharashtra State, with necessary IT infrastructure, Controlling the CAP centres, Evaluators mapping as per the list given by the Open University. d) Post examination services covering result processing, moderation, gracing, verifying missing entries, post exam report generation, generation of mark sheets, 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 &#....
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....s (including Open Universities)? Applicant's understanding: 15. The applicant believes that the supply of pre and post examination services to educational institutions like Educational Boards, Universities (including open Universities) are in relation to admission to, or conduct of examination by the said institutions. Accordingly, the services being provided to the educational institutions would fall under Sl. No. 66(b)(iv) NN-12/2017 and eligible for exemption from payment of GST. 16. In case of provision of pre and post examination services by the applicant as a sub-contractor to the main contractor who in turn provide the said services 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) da....
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....on to, or conduct of examination by, such institution is eligible for exemption. 21. In the present case, the applicant has entered into agreements with State Education Boards and Universities (including open universities) in different states for providing pre and post examination services. 22. As per the scope of work under the agreements entered between the applicant and educational institutions, the applicant shall arrange required equipment for scanning of ICR forms & OMR sheets viz. Servers, ICR Scanners, OMR Scanners, PCs along with the Printers, Modems, UPS, etc. The secured office area and power will be provided by the service recipient viz. educational institute. 23. The activities being carried out by the applicant under pre and post examination services would inter alia include 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 cand....
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....lifications awarded by them are recognized by law. 30. The applicant submits that in case of State Education Boards and Universities, the education boards/universities conduct the examinations and grant certificates/degrees to the students and the affiliated colleges only facilitate for imparting the education to the students. 31. The applicant also submits that the term "education' is very wide and it would include imparting of study, learning, conduct of examination and grant of certificates or degrees to the students by the education boards and universities including open universities. 32. The applicant submits that the Hon'ble Supreme Court in the case of Gujarat University vs. Krishna Ranganath Mudholkar [AIR 1963 SC 703], held that the expression education' is of wide import and includes all matters relating to imparting and controlling education. 33. In the case of Nidhi Kaim vs. State of M.P., [2016 (7) 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 othe....
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....ot be complete, so is the case with college students, whose education would be complete only when the University conducts examinations and awards degrees or diplomas. It is the School Boards which issue the Secondary and Higher Secondary School Certificates after holding examinations and the University which confers degrees/diplomas etc. after holding examinations. Unless a student holds a certificate issued by a Board, his or her school education would not be complete, similarly, without a degree or diploma being conferred by the University, college education would not be complete. Therefore, examinations are an indispensable component of education, without which such education is incomplete. Therefore, to say that boards/universities are not 'educational institutions would amount to divorcing examinations from education. 35. The term 'educational institution' as defined under NN-12/2017, would include an institution providing services by 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 th....
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....eets, printing of Memos, etc., provided to the State Education Boards would qualify as services relating to conduct of examination by the educational institutions (State Education Boards in this case). 45. Thus, the second condition specified under Sl. No. 66(b)(iv) of the NN - 12/2017 is also fulfilled. Accordingly, the applicant submits that in this case, exemption is applicable to the applicant in respect of the pre and post examination services being provided to the State Education Boards. Services provided to Universities: 46. The applicant has also entered agreements with various Universities for providing pre and post examination services. As submitted above, the Universities impart education to the students and the colleges affiliated to the said universities act as facilitators. The University prescribes the syllabus and provide the same to the colleges. The Universities conduct examination and grant degree to the students. 47. The applicant also refers the recent Hon'ble 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 H....
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....52. The services being provided by the applicant to the Universities are in relation to conduct of examination. Accordingly, in this case also the two conditions viz. services are provided to educational institutes and the services are in relation to conduct of examination are fulfilled. 53. Further, the applicant submits that there would not be any distinction between Education Boards and Universities for providing exemption when the same services are provided by the applicant to the Education Boards and Universities. Accordingly, the applicant submits that exemption would also be available to the applicant in respect of the pre and post examination services being provided to the Universities. 54. Thus, the applicant submits that the services being provided to the Universities are also covered under Sl. No.66(b)(iv) of the NN-12/2017 and the applicant is eligible for the exemption. 55. The applicant also submits that if GST exemption is not available in respect of pre and post examination services provided 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....
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.... applicant for whom the supplies of the services of printing of examination related material are made intended to be made are Mumbai university examination Committee, Bihar University Examination Committee, JNTU, Kakinada. All of the three institutions invariably fall under the category of educational institution" as they fulfil the criterion of 'institution providing services by way of, - (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;! Further, with reference to the services provided by the applicant, they are nothing but 'services relating to admission to, or conduct of examination by, such institution' falling under Sl.No.66 of the said exemption notification of No. 12/2017-CGST [Rate) dated 28.06.2017 as amended. 63. The applicant also places reliance on the following cases wherein it was held that the provision of service of scanning of OMR sheets, Bar-codes, printing of marks memos, certificates, etc. to the educational boards and universities are covered under Sl. No.66(b)(iv) of the NN-12/2017 and eligible for exemption from payment of GST. • Orient Press Limited,....
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....ey may be permitted to file additional material / written submissions at the time or after the personal hearing as may be required. III. Personal Hearing: The Authorized representatives of the unit namely Sri S. Purushotham, Accountant & G. Jagannath, Advocate, authorized representatives of the firm attended the personal hearing held on 27-04-2022. The authorized representatives reiterated their averments in the application submitted and contended as follows: 1. That, they are making supplies under Clause (IV) of (b) of Sl.No.66 of Notification 11 of 2017 which was amended subsequently vide Notification No.2 of 2018 to omit the phrase 'upto higher secondary education' from the provision to the said entry. They are desirous of ascertaining their eligibility for exemption under the said provision. 2. That, they are also executing the above service as sub-contractor and are desirous of ascertaining whether the said exemption extends even to the sub-contractor. IV. The opinion expressed by Sri S.V. Kasi Visweswara Rao, Additional Commissioner (State Tax), on the issues raised by the applicant. The CBIC has issued a Circular No. 151/07/2021-GST CBIC- 190354....
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.... "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". After omission of the phrase 'upto higher secondary education' service provide to all educational institution the services provided to Universities is also covered under this entry. Further the entry 66(b) regarding this service is abstracted as under: "Services provided - ... (b) to an educational institution, by way of,- ... (iv) services relating to admission to, or conduct of examination by, such institution." Thus the service relating to admission to or conduct of examination is exempt when provided to such educational institution. Therefore as a service itself is exempt, this exemption can be claimed by any taxable person including a sub-contractor. In view of the above discussion, the questions raised by the applicant are clarified as below: Questions Ruling 1. Whether GST exemption is applicable to applicant in respect of the pre and post Examination services being provided to the Educational Bo....
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....etc, when provided to such Boards under S. No. 66 (b) (iv) of Notification No. 12/2017-CT(R). As seen from the averment of the applicant they claim to supply services which are related to conduct of examination. And the Sl.No.66 of Notification No.12 of 2017-Central Tax (Rate), dt: 28-06-2017 provides for exemption for services related to admission to or conduct of examination by such institution. Further the proviso to the entry at Serial No. 66(b) read as follows earlier to its modification vide Notification No.2 of 2018 to omit the phrase 'upto higher secondary education' from the provision to the said entry : "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". After omission of the phrase 'upto higher secondary education' service provide to all educational institution the services provided to Universities is also covered under this entry. Further the entry 66(b) regarding this service is abstracted as under: "Services provided - ... (b) to an educational institution, by ....