Indian institution of Management Act, 2018 which came into force from 31.01.2018 states that IIM’s listed in the schedule of the said Act shall be consider the ‘institute of national Importance’. Thus the same has been defined as educational institute under notification no.12/2017 –CT (R) dated 28.06.2017 as they provide education as part of curriculum for qualification recognised by law.
IIM’s provide various long term and short term courses the list of the few couses provided by IIM ahemdabad on illustrative basis are as follows.
|Long term Courses||Short term Courses|
|Post-Graduate Programme (PGP) – 2-year program||Armed Forces Programme|
|Post-Graduate Programme in Food and Agri-Business Management (PGP-FABM) – 2-year program||Faculty Development Programme|
|Fellow Programme in Management (FPM) – 4 to 5-year program||Executive Education
a. Customized Executive Programmes
b. Open Enrolment Programme
|Post-Graduate Programme in Management for Executives (PGPX) – 12 months (1 year) full time program|
|E-Post-Graduate Programme (ePGP) – 2-year online program.|
Therefore the service provided by the IIM’s for providing all such long term courses as stated above and recommended by board of governor shall be exempt from GST from 31.01.2018. However for the period 01.07.2017 to 31.01.2018 IIM’s were not considered as educational institutes and hence were not entitled for exemption under GST. However there were specific exemption for the 3 programs under IIM’s under Sr. no 67 of notification No.12/2017 – CT (R) dated The said entry has been deleted and became redundant w.e.f. 01.01.2019 vide notification no. 28/2018- CT(R) dated 31.12.2018. Therefore, the taxpayer may avail any of the beneficial exemption under entry66 /67 of said notification during the period 01.01.2018 to 31.12.2018. The same is also settled from various judgments of SC that tax payer may avail the beneficial of the exemption available.
In these regard following case law may be refereed
1 H.C.L. Limited vs Collector of Customs [2001 (130) ELT 405 (SC)]
2 Collector of Central Excise, Baroda vs Indian Petro Chemicals [1997 (92) ELT 13 (SC)]
3 Share Medical Care vs Union of India reported at 2007 (209) ELT 321 (SC)
However the short term courses offered by IIM’s are still liable to GST at standard rate of 18%