GST payable on income earned from conducting Guest Lectures

By Editor4 Goods and Services Tax Judiciary January 21, 2022 1 comment

TaxGuru Citation: 2022 taxguru.in 450
Case Name: In re Sri Sairam Gopalkrishna Bhat (GST AAR Karnataka)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: AAR/AAAR Karnataka, Advance Rulings

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In re Sri Sairam Gopalkrishna Bhat (GST AAR Karnataka)

a. Whether the income earned from conducting Guest Lectures, amounts to or results to as taxable supply of services?

The income earned from conducting Guest Lectures, amounts to taxable supply of services as per entry No. (ii) of 21 of Notification No. 11/2017 Central Tax (Rate) dated: 28.06.2017.

b. Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as taxable supply of service to be taxed at Nil rate as per Heading 9992?

In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%.

c. Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at (Integrated Tax) 18% under Heading 9983?

In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%.

Read AAAR order: GST AAAR not empowered to condone the delay beyond the prescribed period

FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA

ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017

Sri Sairam Gopalkrishna Bhat, (hereinafter referred to as the ‘Applicant’) No.401, Dwarkamayee Building, 16th Cross, Jnanabharathi 2nd Block, Nagadevanahalli, Bengaluru-560056 has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.

2. The applicant had obtained registration as a Proprietary concern under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively) and the registration was cancelled w.e.f 01.09.2019. Since he is not registered under the GST Act presently, he is considered as an unregistered person. The applicant is a Professor of Law at the National Law School of India University, Bengaluru and is engaged in classroom teaching and training for students and other personnel.

3. The applicant has sought advance ruling in respect of the following questions:-

a. Whether the income earned from conducting Guest Lectures, amounts to or results to as taxable supply of services?

4. Admissibility of the application:The question is about “determination of the liability to pay tax on any goods or services or both” and hence is admissible under Section 97(2)(e) of the CGST Act 2017.

5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue:

5.1 The applicant states that he is a Professor of Law at National Law School of India University, Bengaluru and is engaged in classroom teaching and training for students and other personnel, and the payments for which are made by Educational Institutions. The applicant states that he is also invited by multiple Universities and Colleges of National Repute to deliver Guest Lectures.

5.2 The applicant states that he provides teaching and training and interconnected activities under Research and Training Projects granted by the Government of India and State Government of Karnataka and International Institutions such as UNDP.

5.3 The applicant states that in February, 2019 he was advised to register himself under the GST Regime as his total income exceeded Rs.20,00,000/- in the financial year 2018-2019, from his activities such as delivering of Guest Lectures at Institutions of International and National Repute, recognized by the UCG and sponsored by Government of India and teaching interconnected activities under a Project sponsored by the United Nations Development Programme and hence registered himself under GST Act 2017.

5.4 This office had addressed a letter to the Commissioner of Central Tax, Bengaluru West GST Commissionerate, Bengaluru on 27-10-2021 to file comments, if any, on the application filed. In response to this, the Assistant Commissioner (Legal) Central Tax, Bengaluru has furnished comments as below:-

Sairam Gopalkrishna Bhat, Flat No.401, Dwarkamayee Building, 16th Cross, Jnanabharathi 2nd Block, Nagdevanahalli, Bengaluru-560056 having GSTIN 2 9AFZPB2086B1 ZB has made following declarations in the application filed before the Advance Ruling in Form GST ARA-1.

i. The Applicant is a Professor of Law at the National Law School of India University, Bengaluru, a recipient of the prestigious Nehru-Fulbright Fellowship in 2010. The applicant primarily engages classroom teaching and training for students and other personnel, and the payments for which are made by Educational Institutions.

ii. Owning to his scholarly works, the Applicant is invited to multiple Universities and Colleges of National repute to delivery guest lectures.

iii. Additionally, the Applicant also provides Teaching and Interconnected activities under Research and Training Projects granted by The Government of India and State Government of Karnataka and International Institutions such as UNDP, or otherwise.

iv. In February, 2019 the applicant was advised to register himself under the GST Regime as their total income exceeded Rs.20,00,000/-in the financial year 2018-2019, from his activities such as delivering of Guest Lectures at Institutions of International and National Repute, recognized by the UGC, and sponsored by Government of India and teaching interconnected activities under a Project sponsored by the United Nations Development Programme.

v. Owning to the Income having exceeded Rs.20,00,000/- in the Financial Year 2018-19, the applicant registered himself with GSTIN 29AFZPB2086B1ZB as on 05/03/2019.

vi. However, the Applicant understands that the delivery of guest lectures and teaching Services to Universities and Projects funded by Government of India and State Governments are Taxable Supply of Services within the meaning of Section 2(109), as such seeks the clarification of the Hon’ble Advance Ruling Authority on the aforesaid facts and circumstances of the Applicant.

2. The applicant has filed an application before the Advance Ruling in Form GST ARA-01 on 25-10-2021 seeking following clarifications;

Q. A Whether the income earned from conducting Guest Lectures, amounts to or results to as supply of taxable services.

Q. B. Whether the Income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply of Service to be taxed at Nil rate as per Heading 9992? (SAC 9992 – Services provided to the Central Government, State Government, Union territory administration under any training program for which total expenditure is borne by the Central Government, State Government, Union territory administration.)

Q. C Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at Integrated Taxed 18% under Heading 9983? (SAC 9983-Other professional, Technical and business services).

3. The Hon’ble Apex Court decision in Loka Shikshana Trust Vs. CTT defines ‘Education’ as a process of training and developing knowledge, skill and character of students by normal schooling.

4. Under GST Tariff the Service of Education is listed at Service Code 9992 of Section 9 and the same reads as under;

Heading 9992 – Educational Services

The Educational Services is exempted under SI.No. 72 of the Notification No.12/2017 CT Rate Dt.28.06.17 and the relevant portion of the notification is extracted below.