TaxTMI 
TaxTMI 
2022 (12) TMI 1100
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....versity of Kota, Near Kabir Circle, MBS Marg, 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 und....
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....ertificate. Therefore, it falls in the ambit of Service provided 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 sha....
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.... Explanation: Ex-officio members mentioned at (i) to (ii) shall include their respective nominees who shall not be below the rank of Deputy Secretary to the Government of Rajasthan. (III) Nominated Members:- (i) Two person nominated 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, ....
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....tate Government is satisfied that owing to mal-administration or financial mismanagement in the University a situation has arisen whereby financial stability of the University has become insecure, it may, by a notification, declare that the finances of the University shall be subject to the control of the State Government and shall issue such other direction as it may deem 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....
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.... 12/2017-CT (Rate) dated 28.06.2017 as amended by Notification No. 02/2018-CT (Rate) dated 25.01.2018. This exemption makes it amply clear that services in relation to education is exempt from levy of GST. 16. The applicant is under a bonafide doubt and confusion as to whether affiliation fee is liable to GST or is covered under aforesaid Notification. The applicant therefore, seeks direction in guidance by way of the present application. 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 instituti....
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....ee is nothing but part of fees received towards providing services to students in form of recognized courses leading to award of recognized degrees etc. by colleges. Further, the affiliation fee collected by University are in the nature of statutory levies. The applicant is only discharging a statutory function and the fees collected by applicant cannot be amenable to levy of GST. 4) further, applicant stated that interpretation of 'in relation to' the phrase 'in relation to' signifies the importance of the qualifying activity which 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 (Cesta....
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....horized Representatives) appeared for PH. During the PH, they reiterated the submissions already made in the application. Applicant made additional submission on 29.08.2022. E. COMMENTS OF THE JURISDICTIONAL OFFICER In the matter, Joint Commissioner, SGST Circle E, Kota has submitted his comments vide letter JC/ST/E/ Kota/2022/149/ dated 22.06.2022 that affiliation fees collected by applicant from various colleges is taxable @ 18% under SAC Code 9997. F. FINDINGS, ANALYSIS & CONCLUSION: 1) We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral and written submissions made at the time 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....
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....nder SI.No. 66(b){iv) of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended by Notification No.2/2018 with effect from 25.01.2018 is applicable to the said supply. 6) The applicant claims that the services extended by them are the 'services provided to an educational institution by way of services relating to admission to, or conduct of examination by, such institution' and effective from 25.01.2018, i.e. after the words 'upto higher secondary' stands omitted as per entry ( o ) (ii) (A) of Notification 2/2018 in the entry 66(b)(iv) of the Notification 12/2017-C.T.(Rate), their activity of affiliation merits exemption under the said entry. 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 cla....
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.... amendment made w.e.f. 25.01.2018, the words 'upto higher secondary' were omitted in clause (b) (iv). 8) In this regard, it is pertinent to examine the comments of the Fitment Committee as seen in the agenda notes placed before the 25th meeting of the GST Council and the minutes of the said meeting as the decision of the said meeting was effected vide Notification No. 2/2018-C.T.(Rate) dated 25.01.2018. Reference to the discussions and the decisions of the GST Council, a Constitutional Body, is to understand the intention of the amendment. The relevant recommendation of the 'Fitment Committee' accepted by the Council as under- "To exempt services relating to admission to, or conduct of examination provided to all educational institutions, as defined in the notification. To exempt services by educational institution by way of 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 notificat....
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....f entrance examination is also exempt. The exemption is wide enough to cover the amount or fee charged for admission or entrance, or amount charged for application fee for entrance, or the fee charged from prospective students for issuance of eligibility certificate to them in the process of their entrance/admission to the educational institution. Services supplied by an educational institution by way of issuance of migration certificate to the leaving or ex-students are also covered by the exemption. Accordingly, such activities of educational institution are also exempt. 4.4 Accordingly, it is clarified that the amount or fee charged from prospective students for entrance or admission, or for issuance of eligibility certificate to them in the process of their entrance/admission as well as the fee charged for issuance of migration certificates by educational institutions to the leaving or ex-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 w....
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....serve that as per the definition of affiliation under regulation, affiliation in relation to a college is an activity to recognize such college to the privileges of the university to which the institution is affiliated. In other words, the activity of affiliation is to monitor whether the institution possess the required infrastructure in terms of Space, Technical prowess, financial liquidity, faculty strength, etc and thereby eligible for the privileges to conduct the course/programme of study for the degree/title extended by the University to the students enrolled in such institutions. 15) In the case at hand, it is evident that the affiliation services provided by the applicant enables the said institution to conduct the course/programme and do not relate to admission of students to such course/programme in the said institutions or conduct of examination for such admission in the said institution. Also, the exempted services on the conduct of examination is that related to the admission to such institution and not related to the examination based on which degree/title, etc are conferred to the students, as is being claimed by the applicant, though we do not part any opinion o....