M/S EMERGE VOCATIONAL SKILLS PRIVATE LIMITED

The Applicant is a private limited company engaged in providing specified educational services in the field of Hotel Management. The courses are offered under following two structures:
i. The applicant is an approved training partner to the National Skill Development Corporation of the Government of India and has been engaged in providing education to students under the said scheme;
ii. The applicant is affiliated to specified universities and provides degree courses to students under related curriculum. While the administration and the curriculum is managed by the applicant, the examination is conducted and degree is granted by the University (“university curriculum”).

The Applicant sought Advance Ruling on "Whether the services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums are exempt from Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 – Central Tax dated 28.06.2017?”

Notification No. 12/ 2017 – Central Tax (Rate) dated 28.06.2017 defines “educational institution” in clause 2(y) as under:
(y) “educational institution” means an institution providing services by way of,-
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course

The applicant is not imparting pre-school education or education up to higher secondary school or equivalent and hence is not covered under clause (i) above. Further he is also not imparting education as a part of an approved vocational education course and hence is also not covered under clause (iii) above.

As per the contention of the applicant, he is getting the institution affiliated to a University in the State of Karnataka and is also proposing to impart education as a part of a curriculum provided by the University and the examination would be conducted by the University and qualifications which are recognized by law would be issued to the successful candidates. Hence the institution would qualify as an “educational institution” for the purposes of such courses only which lead to a qualification recognised by any law for the time being in force.

Since the “Services provided by an educational institution to its students, faculty and staff” is exempt from tax under the CGST Act and the applicant qualifies as an educational institution in so far as those courses for which affiliation has been obtained from the University in the State of Karnataka and for which University Curriculum is prescribed and the qualifications recognized by the law for the time being in force is given after the conduct of examinations by such University, the applicant is exempted from Goods and Services Tax.

CRUX: The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums exempt from CGST vide entry no. 66 of the Notification No. 12/ 2017 – Central Tax (Rate) dated 28.06.2017 subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.