TaxTMI 
TaxTMI 
TaxTMI 
2022 (12) TMI 1100
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....rg, Kota-324005 (Rajasthan) (hereinafter the Applicant) being a registered person (GSTIN is 08AAAJU0362K1ZX) as per the declaration given by him in Form (ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and RGST Rules 2017. The appellant i.e M/s University of Kota, Near Kabir Circle, MBS Marg, Kota-324005 (Rajasthan) has raised the following question for advance ruling in the application for Advance Ruling filed by it. Whether the services provided by the University of Kola relating to affiliation granted to colleges for imparting education is a supply of service liable to levy of GST under the CGST Act, 2017? It yes, whether amount collected by way of affiliation fee, are exempted vide S.No 66 of Notification No.12/2017-CT (Rate) dated 28.06.2017? A. SUBMISSION OF THE APPLICANT:(in brief) 1) The Applicant that University of Kota, enacted under Special Act of State Legislative Assembly thus ....
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....ided by an educational institution to its students, faculty and staff which are exempt from Goods and Service Tax (Sr. No 66 of notification No. 12/2017-GST dated 28.06.2017). 4. That the University of Kota is also exempted under Section 10(23c)(iiiac) and is also registered under Section 12AA of Income Tax Act. Hence, the same is also exempt as per Sr. No 1 of Exemption Notification No. 12/2017- CT (Rate) dated 28.06.2017. 5. As per clause 9 of the University of Kota Act, 2003 officers and authorities of the Applicant shall include.- (a) Officers of the University: (b) Authorities of the University:- (i) The Board of Management (ii) The Academic Council (iii) The Faculties (iv) The Board of Studies and (v) such other authorities as may be declared by the Statutes to be the authorities of the University 6. As per clause 10 of the University of Kota Act, 2003 the Chancellor shall include:- (1) The Governor of the State of Rajasthan shall be the Chancellor of the University. He shall by virtue of his office, be the head of the University and shall when present preside at the convocations thereof. (2) The Chancellor shall have such other powers as may be conferred....
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....minated by the Vice-Chancellor from amongst the Deans for one year; (ii) Two University Professors nominated by the Vice-Chancellor for one year; (iii) Two eminent educationists to be nominated by the Chancellor for three years; (iv) Two Principals of affiliated colleges, one from the Government colleges and another from Private Colleges, to be nominated by the State Government for one year; (v) Two members of state legislature to be nominated by the State Government for three years; and (vi) Two eminent educationists to be nominated by the State Government for three years. (IV) Elected members: Two teachers of the University or its constituents' colleges who have put in not less than seven years teaching experience in any institution of higher education in Rajasthan on 1st January immediately preceding the year in which elections are held, other than University Professors, Deans, Directors of the Colleges of the University to be elected by the teachers of the University and its constituent colleges from amongst themselves for three years. Conferment of autonomous status, of the Colleges under affiliation of the University - As per clause 26 of the University of K....
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.... fit for the purpose and the same shall be binding on the University. 11. As per clause 44 of the University of Kota Act, 2003 provides that:- 44. Accounts and audit (1) The annual accounts and balance sheet of the University shall be prepared by the Comptroller under the direction of the Vice-Chancellor and moneys accruing to or received by the University from whatever source and all amounts disbursed or paid shall be entered in the accounts. (2) Such accounts shall be audited in the prescribed manner by such auditors as the State Government may direct and the cost of such audit shall be a charge on the University fund. (3) The accounts when audited shall be printed and copies thereof together with the audit report shall be submitted by the Vice-Chancellor to the Board which shall forward them to the State Government with such comments as may be deemed necessary. 12. That UOK is not a commercial organization operating with the objective of earning profit and on commercial terms to as to attract levy of service tax UOK is a creature of law set up by Government of Rajasthan under the special Act, viz, UOK Act, 2003 and duly notified in the Gazette of the State. The objecti....
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....on. B Interpolation and understanding of applicant on question rose (in Brief) 1) The applicant submitted that they are eligible to sought advance ruling on the issues, under subsection (c) of Section 95 & Section 97(2) of the CGST Act. 2) The applicant contended that the activities of UOK which are in relation to education and an integral part thereof as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force which is covered under clause 66 of N.No. 12/2017-CT (Rate) dated 28.06.2017 under exemption notification in light of Definition of educational institution under Section 2(y) of N.No. 12/2017-CT dated 28.06.2017- (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; 2) The applicant further submitted that UOK is a University set up by the Government for the sole purpose of providing education to students in the Sta....
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....ch in this case is education and it expands the scope that not only the main activity will be covered but other ancillary or auxiliary services will also be covered which are in relation to main activity. 5) The Applicant would rely on the following judicial pronouncements in this regard, i.e., meaning of 'relating to':- a) In Touraids (I) Travel Services v. CCE (2014) 47 GST 300; (2014) 35 STR 234; 48 taxmann.com 235 (Allahabad), b) In Hero Motocorp Ltd. v. CST, Delhi (2013) 32 STR 371 (Cestat, New Delhi), c) In National Engineering Industries Ltd. v. CCE, Jaipur (2013) 31 STR 107 (Cestat, New Delhi), d) In State of Karnataka v. Azad Coach Builders Pvt. Ltd. (2010) 262 ELT 32 (SC), content and ought not be so construed". e) In Delhi High Court in Home Solutions Retail India Ltd v. Union of India & Other (2009) 14 STR 433 (Delhi) f) In All India Fedn. of Tax Practitioners v. Union of India (2007) 7 STR 625 (SC), g) In TamilnaduKalyanaMandapam Association v. Union of India (2006) 3 STR 260; (2006) 4 STT 308 (SC), h) In CCE Mumbai IV v. CKP Mandal (2005) 180 ELT 471; (2005) 1 STT 28; (2006) 3 STR 449 (Cestat, Mumbai), i) In Doypack Systems Pvt. Ltd. v. Uni....
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....ime of Virtual hearing and the comments of the Central Tax Authority. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. We would like to discuss the submission made by applicant and will take up the above question for discussion one by one. 2) The applicant is a University established under the University of Kota Act, 2003. Applicant undertake activities related to affiliation of colleges as affiliated, professional or post graduate colleges under conditions prescribed and to withdraw affiliation from colleges; to approve colleges providing course of study for admission to the examinations for titles and diplomas of the University under conditions prescribed and to withdraw such approval; to designate any college as an autonomous college with the concurrence of the Government in the manner and under conditions prescribed and to cancel such designation and collect various fees in this regard from the institutions; to collect affiliation fee charged by the applicant from various self-financing/non-government colleges / government colleges as decided by the Affiliation Fee Committee which varies from course to course ....
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.... It is their contention that the fees collected & the activities undertaken towards affiliation of the institution, course, extension of course, etc are services provided to 'educational institutions', 'in relation to' admission & conduct of examination in as much as the institution cannot admit a student without affiliation and the student cannot take the examination unless he is registered with the university through the college as per the Kota University Act 2003 7) We observe that the whole claim is based on entry at SI.No.66 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 which exemption is claimed and we will take up it for analysis. follows:- The relevant extract of entry No. 66 of exemption notification reads as under: "Services provided: (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of, - Transportation of students, faculty and staff; catering, including any mid-day meals scheme sponsored by the Government; Security or cleaning or house-keeping services performed in such educational institution; Services relating to admission to, or conduct of examination by, such i....
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.... conduct of entrance examination against consideration in the form of entrance fee is given below for ease of reference:" 9) From the above, it can be seen that the amendment was proposed to exempt services relating to admission to, or conduct of examination for admission to all educational institutions, as defined in the notification (definition 2(y) of Notification No. 12/2017-CT(R)). Thus the entry at 66(b)(iv) seeks to exempt only those services provided to such institution in relation to admission of students or conduct of examination for such admission to all the educational Institutions, including the higher educational institutions, which were not exempted up to this amendment 10) We have gone through the judicial pronouncements of various judicial authority pertains to phrase "in relation to". We have also gone through the decisions of various courts submitted by applicant on dated 29.08.2022. We found that none of pronouncement submitted by applicant in his favors squarely covers the present question of law in respect of applicability of GST on affiliation fees. Further we find that all the case laws are relating to erstwhile service tax Act and provisions of Service Ta....
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....x-students is covered by exemption under SI. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017." 12) On examination of above said clarification we don't found that affiliation fees so collected by applicant from its affiliated colleges is exempt. Further we would like to refer Circular No. 151/07/2021-GST dated 17.06.2021 regarding Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination) wherein it is clarified at SI.4 (iii) that 18% GST will be applied to other services. Relevant portion is as under- "4. Taking into account the above, the GST Council has recommended, to clarify as below: (i) GST is exempt on services provided by Central or State Boards (including the boards such as NBE) by way of conduct of examination for the students, including conduct of entrance examination for admission to educational institution [under S. No. 66 (aa) of not if No. 12/2017-CT(R)]. Therefore, GST shall not apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations.- (ii) GST is also exempt on input services relating to admission to, or ....