Case Law Details

Case Name : In re State Examination Board (GST AAR Gujarat)
Appeal Number : Advance Ruling No. GUJ/GAAR/R/2019/16
Date of Judgement/Order : 28/08/2019
Related Assessment Year :

In re State Examination Board (GST AAR Gujarat)

The applicant has submitted that it is conducting various types of examinations : viz for getting job of teacher for pre primary, primary and secondary school, for getting job as a teacher in Government/Grant-in-Aid School in standard 9 to 12, for getting a job as a Principal in Grant-in-Aid School, for being confirmed in service, for getting higher Scale, for getting promotion, for getting self employment as a painter, for getting self employment, for getting jobs in various other fields, for scholarships, examination to get admission for study at Rashtriya Military College, Dehradun etc. The applicant further stated that these exams are planned and conducted by the State Examination Board on its own accord and that the beneficiaries of these exams are the persons appearing in these examinations. It was also submitted by the applicant that for conducting such examinations, the State Examination Board takes input services of private institutions who prepare the question sets and also prepare the required answer sheets for such exams and that the nominal fees are charged from each of the applicant for the various exams.

We observe that the issue involved in this case is regarding

(e) determination of the liability to pay tax on any goods or services or both;

(f) whether applicant is required to be registered;

We observe that the benefit of exemption is not available to the State Examination Board under entry no. 66 (b)(iv) to the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 read with Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 as the exams conducted by the applicant are planned and conducted by the State Examination Board on its own accord and its not the services provided to an educational institute.

We observe that State Examination Board is liable for registration as it does not falls under Section 23(a) of Central Goods and Services Tax Act, 2017.

Question 1: The activities of conducting various types of examinations : for getting job of teacher for pre primary, primary and secondary school, for getting job as a teacher in Government/Grant-in-Aid School in standard 9 to 12, for getting a job as a Principal in Grant-in-Aid School, for being confirmed in service, for getting higher Scale, for getting promotion, for getting self employment as a painter, for getting self-employment, for getting jobs in various other fields, for scholarships, examination to get admission for study at Rashtriya Military College, Dehradun etc. by the State Examination Board, Gandhinagar are not exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended.

Answer : State Examination Board is liable for registration as provided under Section 22 of Central Goods and Services Tax Act, 2017.

FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING,GUJARAT

The applicant, M/s State Examination Board, mentioned that it was set up in November -1966 for the management of various examinations at the level of primary, secondary and higher education by the Gujarat Education Department. The Application further submitted that in order to prevent problems in the management of examinations and to take the exams in a timely, effective and fully confidential manner, the State Examination Board has been given autonomy through the Resolution NO. 1099/1081/N of Education Department dated 25/10/1999 and the Memorandum of Association of the Board has been allowed through Resolution No.: RPB/1099/1081/N of Education Department dated 24/05/2000. The applicant mentioned that their important task is to improve the quality of management and standards of technology and modernize the work of examination.

2. The applicant has submitted that it is conducting various types of examinations : viz for getting job of teacher for pre primary, primary and secondary school, for getting job as a teacher in Government/Grant-in-Aid School in standard 9 to 12, for getting a job as a Principal in Grant-in-Aid School, for being confirmed in service, for getting higher Scale, for getting promotion, for getting self employment as a painter, for getting self employment, for getting jobs in various other fields, for scholarships, examination to get admission for study at Rashtriya Military College, Dehradun etc. The applicant further stated that these exams are planned and conducted by the State Examination Board on its own accord and that the beneficiaries of these exams are the persons appearing in these examinations. It was also submitted by the applicant that for conducting such examinations, the State Examination Board takes input services of private institutions who prepare the question sets and also prepare the required answer sheets for such exams and that the nominal fees are charged from each of the applicant for the various exams.

3. The applicant has raised the following question, on which advance ruling is required –

(e) determination of the liability to pay tax on any goods or services or both;

(f) whether applicant is required to be registered;

4. The applicant, submitted that Entry No. 1 of Notification No. 09/2017, Integrated Tax(rate), services by an entity registered under section 12AA of the Income Tax Act 1961 (43 of 1961) by way of charitable activities are exempt, rate prescribed in such notification is NIL alongwith NIL conditions.

4.1 The applicant further states that entry 66 of Notification No. 12/2017 of Central Tax (Rate) of Point No. (b) states that services provided to an educational institution by the way of services relating to admission to, or conduct of examination by, such institution; up-to higher secondary, provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

4.2 The applicant states that State Examination Board is an entity registered under section 12AA of the Income Tax Act, thus activities done by it should be exempt from the provisions of the GST Act by virtue of entry 1 of Notification 09/2017 Integrated Tax (Rate).

4.3 The applicant further states that as per entry no. 66 of Not 12/2017 Central Tax (rate), State Examination Board can be said to be providing services to education institutions of primary and higher secondary, of admission and conducting examinations, for example, the results of the exam viz Teacher Eligibility Test-I and II that are conducted by it are used by various government institutions for admission purposes as well as for appointing the teachers at various posts in the schools; that Institutions such as the State Primary Education Board and the State Commissioner of Schools appoints the persons who have obtained the requisite marks as teachers in primary schools as well as teachers in higher secondary school. The applicant has given the list of all the exams conducted and the beneficiaries of such exams in Annexure-1.

5. The Central Goods & Services Tax and Central Excise Commissionerate, Gandhinagar informed that it appears that the benefit of exemption is available to the State Examination Board under entry no. 66 sub-rule(b)(iv) to the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 read with Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018. They have further stated that Notification no. 12/2017-Central Tax (Rate) dated 28.06.17 (Sr.No.1) clearly provides exemption to Services by an entity registered under section 12AA of the Income-tax Act, 1961(43 of 1961) by way of charitable activities and hence on this score the applicant’s claim appears to be justified, subject to the fact that the applicant possesses Certificate under section 12AA of the Income-tax Act, 1961(43 of 1961) by way of charitable activities

6. We have considered the submissions made by the applicant in their application, and at the time of personal hearing. We have also considered the views of the Goods & Services Tax and Central Excise Commissionerate, Gandhinagar.

7. We observe that the issue involved in this case is regarding

(e) determination of the liability to pay tax on any goods or services or both;

(f) whether applicant is required to be registered;

8. It is observed that the Notification no. 12/2017-Central Tax (Rate) dated 28.06.17 (Sr.No.1) clearly provides exemption to Services by an entity registered under section 12AA of the Income-tax Act, 1961(43 of 1961) by way of charitable activities and entry no. 66(b)(iv) to the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 read with Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 provides exemption to services provided to an educational institution, by way of services relating to admission to, or conduct of examination by, such institution.

9. We observe that the applicant Notification no. 12/2017-Central Tax (Rate) dated 28.06.17 (Sr.No.1), as amended, clearly provides exemption to Services by an entity registered under section 12AA of the Income-tax Act, 1961(43 of 1961) by way of charitable activities. However, the applicant do not fall in the category of Charitable activities as defined in the said notification which is as follows :

(r) “charitable activities” means activities relating to –

(i) public health by way of ,-

(A) care or counseling of

(I) terminally ill persons or persons with severe physical or mental disability;

(II) persons afflicted with HIV or AIDS;

(III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

(B) public awareness of preventive health, family planning or prevention of HIV infection;

(ii) advancement of religion , spirituality or yoga;

(iii) advancement of educational programmes or skill development relating to,-

(A) abandoned, orphaned or homeless children;

(B) physically or mentally abused and traumatized persons;

(C) prisoners; or

(D) persons over the age of 65 years residing in a rural area;

(iv) preservation of environment including watershed, forests and wildlife;

10. We observe that the benefit of exemption is not available to the State Examination Board under entry no. 66 (b)(iv) to the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 read with Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 as the exams conducted by the applicant are planned and conducted by the State Examination Board on its own accord and its not the services provided to an educational institute.

11. We observe that State Examination Board is liable for registration as it does not falls under Section 23(a) of Central Goods and Services Tax Act, 2017.

12. In view of the foregoing, we rule as under –

RULING

Question 1: The activities of conducting various types of examinations : for getting job of teacher for pre primary, primary and secondary school, for getting job as a teacher in Government/Grant-in-Aid School in standard 9 to 12, for getting a job as a Principal in Grant-in-Aid School, for being confirmed in service, for getting higher Scale, for getting promotion, for getting self employment as a painter, for getting self-employment, for getting jobs in various other fields, for scholarships, examination to get admission for study at Rashtriya Military College, Dehradun etc. by the State Examination Board, Gandhinagar are not exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended.

Answer : State Examination Board is liable for registration as provided under Section 22 of Central Goods and Services Tax Act, 2017.

Question 2: Whether the applicant is required to be registered under the Act.

Answer: Answered in Affirmative.

Question 3: Whether any tax liability arises from the work done by it?

Answer: Answered in Affirmative.

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