The Andhra Pradesh Authority of Advance Ruling (AAR) ruled that Supply of services of education to students for obtaining qualifications of CA and ICWA exams are not exempted services under Entry no.66 of Notification No.12/2017-Central Tax (Rate) dated June 28, 2017, as amended by Notification No.2/2018-Central Tax (Rate) dated January 25, 2018. The ruling would be a relevant one to the Institutes and CA CMA aspirants as the levy of tax would play a major role in determining the fee structure.
The applicant, M/s Master Mind is a proprietary firm and a leading educational institution providing coaching to students for Chartered Accountancy certificate (CA); Cost and Works Accountancy Certificate (ICWA), and Intermediate Certificate.
The coaching provided by the applicant enables the students to appear for the examinations conducted by the respective statutory bodies i.e., Intermediate (Higher Secondary Education), Chartered Accountancy Course consisting of three levels in CA Foundation Course (earlier referred as CPT), CA-Intermediate (IPCC) Course and CA-Final Course, and Cost Management Accountancy (Consisting of three levels i.e. CMA Foundation Course, CMA-Intermediate Course, and CMA-Final Course) and to obtain the necessary qualifications.
The applicant has sought advance ruling on the issue whether the services of supply of service of education as per the curriculum prescribed by the statutory authorities/ government to the students of the applicant for obtaining qualifications/ certificates of CA-Foundation, CA-Inter, CA-Final, CMA (ICWA) Foundation, CMA-Inter, CMA-Final and Intermediate duly recognized by the respective statutory authorities/ government are exempted under Notification No.12/2017-CT (Rate) dated June 28, 2017, Entry no.66(a), as amended.
The Authority consisting of members D. Ramesh and M. Shreekanth ruled that supply of services of education to students for obtaining qualifications of CA Exams is not exempted services under Entry no.66 of Notification No.12/2017-Central Tax (Rate) dated June 28, 2017, as amended by Notification No.2/2018-Central Tax (Rate) dated January 25, 2018.
Another issue raised was whether the charges collected for providing accommodation to the students undergoing the courses are exempted from GST as provided under Notification No.12/2017-CT (Rate) dated June 28, 2017 (entry no.14), as amended read with Circular No 32/06/2018-GST dated February 12, 2018, since the amount charged from the students by the hostel run by the applicant is less than Rs.1000/- per day.
“The applicant is not eligible for the exemption under Entry No.14 of Notification No.12/2017 CT(Rate) dated 28.06.2017,” the AAR ruled.