In re Isha Foundation (GST AAR Karnataka)
Isha Foundation had sought clarification on the exemption for Isha Samskriti, a gurukul style of education to be run by it. The center promotes education, yoga, meditation, and other charitable objectives. The questions revolve around the applicability of Entry No. 57 and Entry No. 69 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017. The Order examines the trust’s registration status, the definition of charitable activities, and the criteria for education exemption. Detailed findings and discussions shed light on the eligibility of Isha Samskriti, a gurukul style of education to be run by Isha Foundation for GST exemption.
Based on the findings, it is determined that Isha Samskriti, a gurukul style of education to be run by Isha Foundation does not qualify for exemption under Entry No. 1 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017. Furthermore, the center (Isha Samskriti) does not meet the definition of an educational institution as per Entry No. 69 of the same notification. Thus, the education services to be provided by Isha Samskriti, a gurukul style of education to be run by Isha Foundation is not eligible for GST exemption.
i. Whether the Education being provided by the applicant is exempt under Entry No.57 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017?
The Education being provided by the applicant is not exempt under Entry No.69 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017.
ii. If no for point (a), whether such service is exempt under any other notification?
The service provided by the Applicant through ISHA Samskriti is not exempt under any other notification.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
1. M/s. Isha Foundation, Sy No.220, Isha Yoga Center, Kasab Hobli, Avalgurki Village, Chikkaballapura-562101 (hereinafter referred to as ‘The applicant’), having GSTIN 29AAATI1053R1Z9 have 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 is a Public Charitable Trust registered under the provisions of Central Goods 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). The applicant is engaged in promoting education, yoga, meditation and other charitable objectives.
3. The applicant has sought advance ruling in respect of the following questions:
(i) Whether the Education being provided by the applicant is exempt under Entry No.57 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017?
(ii) If no for point (a), whether such service is exempt under any other notification?
4. Admissibility of the application: The question is about the “applicability of a notification issued under the provisions of this Act” and is admissible under Section 97(2)(b) of the CGST Act 2017.
5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue:
5.1 The applicant submits that they are a Public Charitable Trust founded in the year 1992, by Sadhguru and they enjoy exemption under section 12AB and 800 of Income Tax for its activities; that the Trust Deed clearly lays down the primary objective of the trust as promoting education, yoga, meditation and other charitable objectives.
5.2 The Applicant states that they are desirous to run Isha Samskriti, a gurukul style of residential school which seeks to impart traditional Bharatiya style of education to children between ages of 7 and 18 in Chikkaballapur in Karnataka; that main objective of this form of education is to nurture the human being so that his body, mind and energies are able to grow to the fullest extent; That main subjects taught in the school are Sanskrit and English language, Indian classical music(Carnatic and Hindustani), Indian classical dance( Bharatnatyam and other forms), Kalaripayattu, Yoga and basic arithmetic; that extracurricular activities including football, volleyball and treks will be conducted.; that school will not issue any certificate of education but students have the option to appear for National open school examination at class 10 and 12 level.
5.3 The applicant states that “Asatoma Sadgamaya” (Meaning: From untruth to truth), the mantra from the Brihadaranyaka Upanishad is the mission of Isha Foundation and therefore nurturing human beings and transforming them into becoming more inclusive and conscious human beings is the primary work. In that direction and in order to further the advancement of spirituality and yoga in the years to come, Isha Foundation has established the Ancient Gurukul style of education to create a set of youth whose core value system is based solely on spirituality and yoga.
5.4 A unique blend of Yogic practices, Indian classical arts such as Bharatanatyam and Classical Music, and martial arts such as Kalaripayattu, bring balance and stability to the child’s body and mind. These intricate art forms have been used for thousands of years not as an entertainment or a hobby, but as a spiritual process. Sanskrit – a language unparalleled in its spiritual significance, forms a major part of their learning process. The children also study English and basic Mathematics. Children are also taught how to tend to mother earth. Residential accommodation and healthy vegetarian meals are provided to the children.
5.5 The applicant states that in an atmosphere of dedication, discipline and focus, each aspect of the child’s lifestyle is carefully chosen to orient them towards their inner nature. The children develop into dynamic, capable and dedicated human beings Thus, Isha Samskriti is an educational institution which is imparting yogic and spiritual education as follows:
a. Yoga – Classical Hatha Yoga as described in various yogic texts like Patanajali Yoga Sutras is taught. Once the children learn Yoga, they are made to practice everyday which creates an ambience within their system to advance towards their spiritual well being.
b. Indian Classical Music – as taught in the Hindustani & Carnatic traditions which are based on Samaveda Natya Shastra. In Indian classical music, the way sound is used – the ragas, the tunes, everything – is such that if one gets deeply involved in this, it will bring meditativeness. The whole purpose of introducing this is to bring meditativeness and thus spirituality into the experience of the children so that they live it and then teach and spread it to others in the course of their life.
c. Indian Classical Dance – as taught in Bharatanatyam and other forms based on Samaveda & Natya Shastra. Dance is not just entertainment but when the postures and the mudras are properly used, it leads to Dance is taught with this objective and the children imbibe the quality of meditativeness and spread the same to the world around them by living and teaching the same.
d. Kalaripayattu -Known as “the mother of all martial arts,” is said to have originated from the Dhanurveda, a scientific treatise on the art of warfare in ancient Bharat (India). Practicing Kalaripayattu increases one’s flexibility and agility, strengthens the muscles and tendons by exercising the body without the need for any equipment. This helps the children to become meditative.
e. Sanskrit Language – is a highly codified language which is scientifically structured to impact the human system. Sanskrit is one language where form and sound are connected. Learning and chanting Sanskrit mantras creates a powerful experience within an individual and creates the right ambience for spiritual growth of a human being.
f. English, Mathematics etc. are taught for a child to learn to communicate and function in the world.
These disciplines have been chosen for their impact on the child’s physical and intellectual development, as well as being conducive for the spiritual process. Children are specially trained in Vedic chants which makes them sharper and Devaram music which helps them develop devotion as both sharpness of intellect and total devotion which is equally needed for living a spiritually enriched life.
5.6 The Applicant also submits that ISHA Samskriti, both in its conception and execution will be like a residential/ boarding school where students live in school campus; that the only difference would be that the school seeks to define its own curriculum which is in line with Bharatiya tradition of gurukula and would focus on classical arts while seeking complete physical, mental, emotional and spiritual development of the students; that they believe that education sought to be provided by ISHA samskriti is covered under entry No. 57 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017
5.7 In a letter dated: 13.04.2023 the authorized representative of the Applicant has submitted that while filing the application they have inadvertently mentioned the entry no. 57 of the of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017 instead of entry no. 69 of the same notification and have requested to consider the same.
6. Applicant’s Interpretation of Law:
6.1 The applicant is of the view that the since the primary objective of Isha Foundation is advancement of spirituality and yoga and since Isha Samskriti will be run to advance that objective, they are exempted under entry No. 1 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017 as under:
