In re Indian Institute of Management, Bengaluru (GST AAAR Karnataka)
a) Pursuant to the enactment of the IIM Act, 2017, with effect from 31st January 2018, the long duration post graduate programs offered by IIMB will be exempt from GST under SI.No 66 of the Notification No 12/2017 CT(R) as amended. During the period 31st January 2018 to 31st December 2018, IIMB can avail the benefit of exemption under either Sl.No 66 or Sl.No 67 of Notification No 12/2017 CT(R) dated 28.06.2017 as amended.
b) IIMB will be eligible for exemption from payment of IGST in respect of supply of online journals and periodicals received from a person located in a non-taxable territory in terms of Sl.No 10 of Notification No 09/2017 IT (R) dated 28.06.2017 as amended.
Also Read AAR Ruling- GST on long duration post graduate diploma/ degree granting programmes by IIM, Bengaluru
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
(Under Section 101 of the CGST Act, 2017 and the KGST Act, 2017)
At the outset we would like to make it clear that the provisions of CGST, Act 2017 and SGST, Act 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act.
The present appeal has been filed under section 100 of the Central Goods and Service Tax Act 2017 and Karnataka Goods and Service Tax Act 2017 (herein after referred to as CGST Act, 2017 and SGST Act, 2017) by Indian Institute of Management, Bangalore, (herein after referred to as ‘IIMB’/’Appellant’) against the advance Ruling No. KAR/ADRG 25/2018 Dated: 25th Oct 2018.
Brief Facts of the case:
1. Indian Institute of Management, Bangalore was registered as a society with the Registrar of Societies, Mysore State and is recognized as a premier institute of higher learning and seat of academic excellence in the field of management. Consequent to the passing of the Indian Institute of Management Act, 2017 which received presidential assent on 31st December 2017 and came into force with effect from 31.01.2018, IIMB is now a body corporate as per Section 4 of the said Act. The object of the Act was to declare certain institutes of management to be institutions of national importance with a view to empower them to attain global standards of excellence in management, management research and allied areas of knowledge.
2. In the light of the enactment of the IIM Act, 2017, IIMB applied for an advance ruling before the Authority for Advance Ruling on 09.05.2018 on the following questions:-
a) Whether the long duration post graduate diploma/degree granting programs offered by the IIMB, other than those specifically mentioned in Sl.No 67 of Notification No 12/2017 CT(Rate) dated 28th June 2017 as amended by Notification No 02/2018 dated 25th January 2018, are exempted from GST output liability, being education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force, in the light of the enactment of the IIM Act, 2017?
b) Whether supply of online educational journals or periodicals to the IIMB is exempted from reverse charge liability of GST under Sl.No 66 of Notification No 12/2017 CT(Rate) dated 28th June 2017 as amended by Notification No 02/2018 dated 25th Jan 2018. being education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of the enactment of the IIM Act, 2017?
3. Based on the facts submitted by the applicant, the Authority for Advance Ruling observed that entry Sl.Nos 66 and 67 of Notification No 12/2017 CT (Rate) dated 28.06.2017 relate to education services falling under Heading 9992; that Sl.No 66 of the said Notification is a general entry providing exemption to services provided by an educational institution and /or to an educational institution; that all educational services provided by an institute, which leads to a qualification/degree, recognized by the law, are exempt from payment of GST. Sl.No 67 has been carved out specifically for the educational services provided by IIMs; that IIMs have been segregated from all other educational institutes and the educational services provided by them are subject to different treatment in terms of exemptions; that in so far as educational services provided by IIMs are concerned, the provisions contained in Sl.No 67 alone shall apply; that the Notification does not allow selective application of Sl.No 67 in respect of certain long term educational programs and application of Sl.No 66 for the rest of the educational programs. In effect, the AAR held that when Notification No 12/2017 CT(R) provides for a specific entry for the IIMs at Sl.No 67, the provisions of Sl.No 66 shall not apply to them. As regards the second question, the AAR held that since this also relates to the applicability of entry Sl.No 66 in the light of specific entry at Sl.No 67, the same view holds good and therefore, the answer for the second question posed by the applicant is also in the negative.
4. Aggrieved by the ruling of the AAR. an appeal has been preferred before this Authority on the following grounds:
4.1 IIMB is an institution recognized worldwide as an institution of higher learning and seat of academic excellence in the field of management. IIMB currently offers the following 5 long duration programs which collectively develop entry and middle level management professionals for companies, government and non-governmental organizations.
Table 1
