In re Datacon Technologies (GST AAR Karnataka)
Applicant were awarded a contract by the Bihar School Educational Board (BSEB) vide Work Order No. ST/281/18 DT dated 16.12.2018 for scanning of OMR Flying slip, OMR Marks Foil, OMR attendance sheet, OMR absentee sheet and finalisation of data.
In view of the above, the applicant sought Advance Ruling in respect of the question that Whether the services performed by them are exempted by virtue of item (b) of Sr. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017?
The Applicant submits their interpretation of law, on consideration of the Bihar School Education Board as an educational institution, that their services are in relation to conduction of examination & hence are exempted from GST, in terms of item (b) of SI. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017 Further they also intend to rely upon the ruling of the Advance Ruling Authority of Maharashtra, in the case of M/s Orient Press Ltd., wherein the identical service was held to be exempted from GST payment.
Held by AAR
It is an undisputed fact that the process of conducting examination is not limited/ restricted to a test centre. Examination is an incomplete activity without assessment. Scanning of answer sheets and quantifying marks is an essential part albeit main objective of the examination process. Educational institutions or the examinees do not look at these activities in isolation. We therefore observe that the stated activity of the applicant is exempted by virtue of Sr. No.66 of Notification No. 12/2017-CT (R) dated 28.06.2017.
The activity of the applicant, is covered under “Other Educational Support services”, under SAC 999299, and is related to conduct of examination and hence is exempted, in terms of Sl.No.66 of Notification No. 12/2017-CT (R) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CGST TAX ACT, 2017 & UNDER 98(4) OF THE KGST ACT, 2017
1. M/s Datacon Technologies, (called as the ‘Applicant’ hereinafter), No.31/10, Left of Magadi Mian Road, Behind Sarswathi Convention Center, Bengaluru-560079, having User-ID 29AAD7D0745L1ZB have filed an application for Advance Ruling under Section 97 of CGST Act,2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01, discharging the fee of Rs.5,000/- each under the CGST Act 2017 and the KGST Act 2017.
2. The applicant are a leading service provider in respect of Print solutions and IT & Infrastructure services. They are based out of Bangalore, Karnataka State & provide services all over the country. They also provide services in respect of examination matters of various Boards and Universities & the said services include
> Offset and Digital Print Solutions
> Variable Data Printing
> Security featured Print Stationery
> Printing of OMR technology forms
> Scanning – Editing and processing of OMR and ICR technology forms
> Data mining and Data Management
> Result processing and Report Generation
> And other allied IT infrastructure services including hardware & Maintenance services.
The applicant caters to the Education vertical in terms of stationery items for the conduct of examination and post examination process such as Marks card/Certificates etc. They were awarded a contract by the Bihar School Educational Board (BSEB) vide Work Order No. ST/281/18 DT dated 16.12.2018 for scanning of OMR Flying slip, OMR Marks Foil, OMR attendance sheet, OMR absentee sheet and finalisation of data.
In view of the above, the applicant sought Advance Ruling in respect of the question that Whether the services performed by them are exempted by virtue of item (b) of Sr. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017?
3. Admissibility of the application :
The applicant filed the instant application, in relation to the services to be provided to the Bihar School Examination Board and have sought advance ruling in respect of the question on the issues covered under Section 97(2)(e) of the CGST Act 2017 and hence the application is admitted.
4. Applicant’s interpretation of law :
The Applicant submits their interpretation of law, on consideration of the Bihar School Education Board as an educational institution, that their services are in relation to conduction of examination & hence are exempted from GST, in terms of item (b) of SI. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017. Further they also intend to rely upon the ruling of the Advance Ruling Authority of Maharashtra, in the case of M/s Orient Press Ltd., wherein the identical service was held to be exempted from GST payment.
PERSONAL HEARING / PROCEEDINGS HELD ON 27,07,2020
5. Sri. Suresh Bkere, Manager Finance & duly authorised representative of the applicant appeared for personal hearing proceedings held on 27.07.2020 & reiterated the facts narrated in their application.
6. FINDINGS & DISCUSSION
6.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by them during the personal hearing. We have also considered the issues involved, on which advance ruling sought by the applicant, and relevant facts.
6.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act.
6.3 The applicant sought advance ruling in respect of the question mentioned at para 2 supra. Thus the issue before us to decide is whether the impugned services are being provided to an educational institution by way of services relating to admission to, or conduct of examination by such institution, covered under SAC 9992 and merits exemption under SI. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017 as amended by Notification No. 02/2018-CT (R) dated 25.01.2018 and Notification No. 18/2018-CT (R) dated 26.07.2018, which is as appended below:
