TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 713
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssion of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s KL N SOURASHTRA COLLEGE OF ENGINEERING COUNCI, No. 6, South Veli Street, Madurai, Tamil Nadu-621001 (hereinafter called as the "Applicant") are registered under the GST Act with GSTIN 33AAAAK1295N1ZH. The applicant, is a registered Educational Trust engaged in providing higher education to Students and also educational services, transportation services, Mess Services and Hostel Services to the Students. The Applicant has entered into an agreement to accommodate the girl students of an educational institution imparting higher education, in the Hostel of the applicant, as there is no accommodation for the girls students....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d food supplies to the students? Interpretation of Law by the Applicant based on the statement of facts: 3.0) On interpretation of law, the applicant has stated that the Circular No. 228/22/2024, dated 15.07.2024, F.No. CBIC-190354/94/2024-TO(TRU-II)-CBEC, dated 15.07.2024 applies only to Service Apartments, Hostels and Lodges. It does not supply to Charitable Trusts/Societies which run Educational Institutions. So the applicant has stated that they require a clarification that the Circular applies to Charitable Trusts/Societies also which accommodate other College Students where the agreement is between the two educational institutions and the service provider raise Bill on the other Educational Institution and paid by that Other Educational Institution on behalf of the Students. 3.1) Further, the applicant has stated that there is no doubt that the services provided by Educational Institutions to their own students are exempt from GST and the applicant is expecting the same point of view exempting the accommodation of other college Students also. 3.2) Similarly, the applicant has also same view that the food supplied to Students there will be no GST liability. 4.0)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....icant, and have accordingly entered into an agreement dated 12.06.2024 with them. They further reiterated the fact that the actual recipient of service in the instant case are the students of the recipient College, and that the applicant acts only as a conduit between their students and the service provider. 5.2) The Members explained the AR that the queries at No.3 and 6 viz., 3. What is the yardstick to classify the students as Poor, Middle and High class? 6. What is the applicable rate/rates of GST if the Council decides it is taxable for both the Hostel accommodation and food supplies to the students? of the application for advance ruling filed by the applicant, are both hypothetical in nature and that the said queries do not appear to be liable for admission, as they do not fall within the ambit of Section 97(2) of the CGST Act, 2017. The AR accepted that the foresaid queries are redundant and requested the members to ignore the same. The AR requested for a favourable ruling on the other queries raised in the application for advance ruling. Discussion and Findings: 6.0 We have considered the submissions made by the applicant in their application, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (d) supply or acquisition of goods including capital goods and services in connection with commencement or 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 benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) activities 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 .......... 6.4 Also, 'consideration' is defined under Section 2(31) of the CGST Act, 2017 as: (31) "consideration" in relation to the supply of goods or services or both includes (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... relating to,- (A) abandoned, orphaned or homeless children; or (B) physically or mentally abused and traumatized persons; (C) prisoners; (D) persons over the age of 65 years residing in a rural area; (iv) preservation of environment including watershed, forests and wildlife; 6.8 From the above definition, it is clear that the activity of providing hostel facilities by a Trust to students is not covered under the definition of 'charitable activities'. Hence, exemption under GST is not available to other activities, except the activities as defined above, carried out by a 'Charitable Trust'. 6.9 However, it is noticed that through Notification No.04/2024-Central Tax (Rate) dated 12.07.2024, an entry as Sl. No. 12A was inserted in the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 with effect from 15.07.2024, which reads as follows: Table SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 12A Heading 9963 Supply of accommodation services having value of supply less than or equal to twenty thousa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... i. The applicant has leased out a part of its premises to another educational institution under an agreement. ii. The bills are raised only in the name of the college whose students are accommodated iii. The services are not directly provided to the students 6.14 Based on the above facts, it is concluded that the activity undertaken by the applicant is clearly that of supply of service by way of leasing of premises to an educational institution. Educational Services are covered under Heading 9992 in the scheme of classification of services and are taxable. 6.15 Nevertheless, Sl. No. 66 of the Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017, as amended, exempts certain services listed therein, if they are provided to an educational institution. The relevant part of the said Notification is reproduced below for reference: Table Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 13 Heading 9992 Services provided - (a) by an educational institution to its students, faculty and staff; (b) to an educat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vices under GST. 6.18 In their additional submissions, the applicant was of the view that the decision given in the case of Thai Moogambikaa Ladies Hostel (Hon'ble HC of Madras) and Maharashtra Jain Education Society (AAR, Maharashtra) is applicable to them. We have looked at the decisions in both the cases and have found that the facts in the cases cited differ from that of the instant case. The cases cited by the applicant relate to the accommodation and food supply services provided directly to the students. Whereas in the instant case, the services are provided to an educational institution. Therefore, the case laws do not apply as the facts and circumstances differ from the present case. 6.19 Based on the above discussion, we attempt to provide replies to the questions raised by the applicant Question No. 1: What is the present position for levy of GST on hostels for poor and middle-class students run by charitable Trusts? 6.20 It is to be noted that not all the services supplied / provided by a charitable trust are exempt from payment of GST. The activities spelt out in the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 only are exempt and running a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in order to claim exemption as prescribed under SI.No.12A of the exemption Notification No.12/2017-Central Tax (Rate), dated 28.06.2017, as amended. Therefore, we are of the considered opinion that leasing out of the premises by the applicant to the recipient college is a taxable supply of service and attracts GST. Question No. 5: Similarly what is the position for levy of GST for the food supplied to Hostel students of another College residing in this College? Please note both colleges are Charitable Institutions. Is it taxable or exempt service? The agreement of Food Supply has been entered into between the two Colleges and one College make the payment to the other College. There is no agreement between the Service Provider and the accommodated Students and no separate bills/receipts will be issued to them. Bill will be raised only in the name of College whose students are accommodated. If it is exempt whether the same is exempt with effect from 15.07.2024 as per Notification No. 4/2024-CT (R) dated 12.07.2024. 6.24 The Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, provides conditional exemption to catering services provided to an educational ins....