The Karnataka Authority of Advance Ruling (AAR) has ruled that 18% GST on income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka.
The applicant, Sai Gopalkrishna Bhat had obtained registration as a Proprietary concern under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 and the registration was cancelled w.e.f 01.09.2019. Since he is not registered under the GST Act presently, he is considered as an unregistered person. The applicant is a Professor of Law at the National Law School of India University, Bengaluru and is engaged in classroom teaching and training for students and other personnel.
The applicant has sought the advance ruling on the issue whether the income earned from conducting Guest Lectures, amounts to or results to as taxable supply of services; whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as taxable supply of service to be taxed at Nil rate as per Heading 9992 and whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at (Integrated Tax) 18 % under Heading 9983.
The coram of Dr. M.P.Ravi Prasad and T.Kiran Reddy has held that the income earned from conducting Guest Lectures, amounts to taxable supply of services as per entry No. (ii) of 21 of Notification No.11/2017 Central Tax (Rate) dated: 28.06.2017.
“In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%,” the AAR said.
The AAR added that in the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%.
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