Courses conducted by IIIC are eligible for exemption from GST, as it is an ‘Educational Institution’: AAR [Read Order]

The Kerala Authority of Advance Ruling (AAR) ruled that Courses conducted by the Indian Institute of Infrastructure and Construction (IIIC) are eligible for exemption from GST, as it is an ‘Educational Institution’.

The applicant, Uralungal Labour Contract Co-operative Society Ltd is primarily engaged in the construction of roads, bridges and other public infrastructure for the Government and other institutions. The applicant entered into an agreement with Kerala Academy for Skills Excellence (KASE), the State Skill Development Mission of the Government of Kerala, under the Department of Labour and Skills for setting up and operating of the Indian Institute of Infrastructure and Construction (IIIC), Chavara, Kollam.

The applicant has sought the advance ruling on the issue of whether the educational courses which are conducted in the Indian Institute of Infrastructure and Construction (IIIC) fall under the taxable service.

The Coram of Members Sivaprasad and Senil K.Rajan held that IIIC has initiated action to get affiliation under various Universities and that no formal recognition has been given to IIIC and the courses conducted there, the Government declares that IIIC, Chavara is a Government-owned institute and the courses that are being conducted in the said institute are approved by the Government. In view of the above declaration that IIIC is a Government-owned institute and the approval of the courses conducted by IIIC by the Government of Kerala, IIIC has attained the status of an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognised by law. Consequently, IIIC qualifies to be classified as an educational institution as defined under sub-clause (ii) of clause (y) of Paragraph 2 of the Notification No. 12/2017 CT (Rate) dated June 28, 2017. Therefore, the courses conducted in the Indian Institute of Infrastructure and Construction are exempted from GST as per entry at SI No. 66 of Notification No. 12/2017 Central Tax (Rate) dated June 28, 2017.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.