Services to Educational Boards – Sub contractor not eligible to claim exemption

In re Magnetic Infotech Pvt Ltd. (GST AAAR Telangana)

Exemption not available to sub-contractor on services provided to educational institutions on behalf of main contractor

The AAAR, Telangana in the matter of M/s Magnetic Infotech Private Limited [Order-in-Appeal No. AAAR/13/2022 dated November 22, 2022] has ruled that the sub-contractor is not entitled to claim Goods and Services Tax (“GST”) exemption on services provided to Educational Institutions on behalf of the main contractor under Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 (“the Services Exemption Notification”).

Facts:

M/s Magnetic InfoTech Private Limited (“the Applicant”) is engaged in providing pre and post examination services to the Educational Boards, Universities and Open Universities (“the Educational Institutions”). The Applicant provided services with respect to data processing for conduct of examination, results preparation and generation and printing of statistical data and reports in the prescribed proformas as required by the Educational Institutions.

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