TaxTMI 
TaxTMI 
2023 (7) TMI 809
X X X X Extracts X X X X
X X X X Extracts X X X X
....ns of the KSGST Act, Rules and the Notifications issued there under. 3. The applicant requested advance ruling on the following: 3.1. Whether the activities or services being provided by the University to its affiliated colleges and students would fall under the "Scope of Supply" and thereby exigible to GST? 3.2. If query no. 1 is in the affirmative, then whether the supply of services by University is exempted under Entries 4 and 5 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and SRO 371/2017 dated 30.07.2017; being the services rendered by a Government authority by way of any activity in relation to the functions entrusted to a Panchayat and Municipality. 4. Contentions of the Applicant: 4.1. The applicant submits that as per Section 56 of the Calicut University Act University has the power to grant affiliation to the colleges as per the procedures in terms of Chapter 23 of the University first statute. As per the statute, University can collect application fee from the colleges seeking affiliation along with other incidental fees. The University provide several functions to the affiliated colleges, some of them are listed below; a) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a supply of services; or (b) a supply of services and not as a supply of goods? 4.4. The supply of goods and services by the University is not in the course or in furtherance of any business. This is clear from the definition of the term "business' under clause (17) of Section 2 which reads as under; "business" includes - (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply pr acquisition of goods including capital goods and services in connection with commencement or a closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefit to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a perso....
X X X X Extracts X X X X
X X X X Extracts X X X X
....The |applicant submits that the University is a statutory body which is set up by an Act of State Legislature and has more than 90% control to carry out the functions entrusted to a Municipality or a Panchayat under Articles 243 W or 243 G of the Constitution of India. Thus, the applicant is a Governmental Authority carrying out "educational services" falling under Entry of Twelfth Schedule of the Constitution of India and therefore is eligible for exemption under entries 4 and 5 of the Notification No. 12/2017-Central Tax (Rate) dated 28,06,2017 and SRO 371/2017 dated 30.06.2017. 5. Comments of the Jurisdictional Officer: The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act, The Jurisdictional Officer reported that there is no pending or decided proceedings against the applicant under any provisions of GST Act 2017. 6. Personal Hearing: The applicant was granted opportunity for personal hearing on 19.04.2023 through Virtual Mode. Shri, V.V Ashokan, Senior Advocate represented the applicant The applicant filed detailed Written Submission dated 15.04.2023 reiterating the contentions already made in the application....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of candidates with university, conducting examination, valuation of answer scripts, issuance of marks list etc. 7.4. As per the Calicut University Act, 1975 the applicant is established as a teaching, residential and affiliating university for the northern districts of the State of Kerala and the prime functions of the applicant as per Section 3 of the said Act is to provide for instruction and training in such branches of learning as the University may deem fit and to make provision for research and for the advancement and dissemination of knowledge; to confer academic autonomy to an affiliated college, department of an affiliated college or University department; to institute degrees, titles, diplomas and other academic distinctions; to hold examinations and to confer degrees and other academic distinctions on persons who shall have pursued a prescribed course of sturdy in a college under the University and shall have passed the prescribed examination or shall have under prescribed conditions carried on research which has been duly evaluated; to confer honorary degrees or other distinctions on distinguished persons in accordance with the conditions to be prescribed in the sta....
X X X X Extracts X X X X
X X X X Extracts X X X X
....b) import of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule I, made or agreed to be made without a consideration- (d) Omitted; (1A) where certain activities or transactions, constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1), (1A) and (2), the Government may, on the recommendations of the Council, specify by notification, the transactions that are to be treated as ,- (a) a supply of goods and not as a supply of services; or....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities? Thus the definition of "business" under the GST Act is an inclusive definition and is so wide in its scope and amplitude that it not only covers all activities or transactions that were subjected to various taxes that were subsumed in GST but also functions undertaken by Central Government, State Government or Local Authority as such public authority. In the case of Dayal Singh Vs Union of India reported in AIR 2003 SC 1140; the Hon'ble Supreme Court held that; "where the language of the statute is clear and unambiguous, nothing can be read into it by implication and the intention of the legislature has to be gathered from the language used." In view of the plain and unambiguous definition of the term "business" in the CGST Act there is no need for recourse to construction or interpretation and the plain meaning of the statue has to be applied. Hence, the observations of the Hon....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to - (a) the preparation of plans for economic development and social justice. (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh schedule." 7.12 The functions entrusted to a Panchayat under the Eleventh Schedule of the Constitution are as under: 1. Agriculture, including agricultural extension. 2. Land Improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor Irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, Village and Cottage industries; 10. Rural housing, 11. Drinking Water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of Communication. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds, prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking Lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 7.15. Thus, it can be seen that the entry Nos. 17, 18 and 19 of Eleventh Schedule of the Constitution covers all types of education and education is also covered under entry No. 13 of the Twelfth Schedule of the Constitution. Therefore, education is a function entrusted to both Panchayath as well as Municipality un....