In re Bharathiyar University (AAR GST Tamilnadu)
Whether the services provided by the University to its constituent colleges (viz) self-financing and management colleges relating to admission to, or conduct of examination by such institution by way of affiliation fee, registration fee such as 1. Application form fees 2. Application fees (Application* Registration fee) (each course/section) 3. Inspection fees (each course/section) 4. Affiliation fee for each course 5. Affiliation fee for each additional section 6. Initial affiliation fee to start an institution 7. Permanent Affiliation fee to the College 8. Continuation of affiliation for each course 9. increase in intake for each course for permanent basis, processing fee & 10. Penal fee for receipt of late application are exempted vide sl.no 66 of Notification No.12/2017 CT(Rate) dated 28.06.2017?
The composite supply of sale of application, registration of course, inspection, etc with the ‘Principal Supply’ of “affiliation” provided by the Bharathiar University to its constituent colleges (viz) Self-financing and management colleges for which they collect 1. Application Form fees; 2. Application Fees (Application* Registration fee (each course/section));3. Inspection fees(each course/Section); 4. Affiliation Fee for each course; 5. Affiliation Fee for each additional section; 6. Initial Affiliation fee to start an institution; 7. Permanent Affiliation fee to the College; 8. Continuation of affiliation for each course; 9. Increase in intake for each course for permanent basis processing fee& 10. Penal fee for receipt of late application is not exempted vide Sl.No. 66 of Notification No. 12/2017-C.T.(Rate) dated 28th June 2017 as amended by 02/2018 dated 25.01.2018 for the reasons stated in para 7 above.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,TAMILNADU
Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax 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 Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
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Bharathiar University, Marudhamalai Road, Coimbatore, Tamilnadu-641046 (hereinafter called the ‘Applicant’) is registered under the GST Vide GSTIN 33AAAJB1479J1ZD. They have sought Advance Ruling on
Whether the services provided by the University to its constituent colleges (viz) self-financing and management colleges relating to admission to, or conduct of examination by such institution by way of affiliation fee, registration fee such as
1. Application form fees
2. Application fees (Application * Registration fee) ( each course/section)
3. Inspection fees (each course/section)
4. Affiliation fee for each course
5. Affiliation fee for each additional section
6. Initial affiliation fee to start an institution
7. Permanent Affiliation fee to the College
8. Continuation of affiliation fee for each course
9. increase in intake for each course for permanent basis ,processing fee
10. Penal fee for receipt of late application
are exempted vide sl.no 66 of Notification no.12/2017 CT(Rate) dated 28.06.2017. The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant has stated to engage in activities to affiliate colleges to university as affiliated, professional or post graduate colleges under conditions prescribed and to withdraw affiliation from colleges, to approve colleges providing course of study for admission to the examinations for titles and diplomas of the University under conditions prescribed and to withdraw such approval, to designate any college as an autonomous college with the concurrence of the Government in the manner and under conditions prescribed and to cancel such designation. They have stated that CBE&C vide e-flyer No 40 dated 01-01-2018 stated that the GST Act tries to maintain a fine balance whereby core educational services provided and received by educational institutions are exempt and other services are sought to be taxed at the standard rate of 18%. Further, they have stated that the CBE&C vide its Press Release No. 69/2017, dated 07.07.2017 has clarified that there were some press reports that education would become expensive under GST that those were completely unsubstantiated and that there was no change made in any subject relating to education in the GST era.
2.2 The applicant has further stated that prior to 01-07-2017, no service tax was charged by the University from the affiliated colleges on the fees in question. Whereas, the Principal Secretary to Government of Tamil Nadu, Higher Education(A2) Department, Secretariat, Chennai -9 vide letter no 11555/A2/2017-5 dated 25-102018 directed the Universities in Tamil Nadu to demand GST @18% (Central tax 9% + State tax 9%) on the above fees, collected from the colleges affiliated to the concerned university and also demanded arrears of tax for the past period. The applicant has stated that in GST act, the Classification of Education Services is defined as below:
a) Classification of Education Services -Education Services are classified in heading 9992 (as per Notification No. 11/2017-C.T. (Rate))
(b) The Central Govt by way of Notification No 12/2017- Central Tax (Rate) dated the 28th June, 2017 provides exemption for various services and as per Sl.No. 66 pertaining to Heading 9992 or Heading 9963, GST on services provided to an educational institution, by way of services relating to admission to, or conduct of examination by, such institution is exempted.
2.3 The applicant on their interpretation of law and/or facts has stated that with respect to the notification No. 12 / 2017- C.T. (Rate), the activities enlisted in the Section 4 of the Bharathiar University Act 1981(Tamil Nadu Act 1 Of 1982) are most relevant to decide the eligibility under the said notification.
The relevant sub sections of Section 4 of the Bharathiar University Act 1981(Tamilnadu Act 1 Of 1982) is as follows:-
4.Objects and powers of the University: The University has the objects and powers, namely:-
