Education Imparted by Isha Samskriti School under Isha Foundation Ineligible for GST Exemption: AAR [Read Order]

The Karnataka Authority for Advance Ruling (AAR), observed that education imparted by Isha Samskriti School under Isha Foundation is ineligible for Goods and Service Tax (GST) exemption.

The applicant, M/s Isha Foundation, is a Public Charitable Trust registered under the provisions of Central Goods Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The applicant is engaged in promoting education, yoga, meditation and other charitable objectives.

The applicant has sought advance ruling in respect of the following questions on whether the Education being provided by the applicant is exempt under Entry No.57 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017 and if no for point (a), whether such service is exempt under any other notification.

The applicant stated that they are desirous to run Isha Samskriti, a gurukul style of residential school which seeks to impart traditional Bharatiya style of education to children between ages of 7 and 18 in Chikkaballapur in Karnataka; that main objective of this form of education is to nurture the human being so that his body, mind and energies are able to grow to the fullest extent.

The applicant also submitted that Isha Samskriti, both in its conception and execution will be like a residential/ boarding school where students live in school campus; that the only difference would be that the school seeks to define its own curriculum which is in line with Bharatiya tradition of gurukula and would focus on classical arts while seeking complete physical, mental etc.

A Two-Member Bench of the Authority comprising Dr. M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes and Kiran Reddy T, Additional Commissioner of Customs & Indirect Taxes observed that “The Applicant is neither providing pre-school education nor education up to higher secondary school and they are following their own curriculum. In view of the above the Applicant is not covered under the definition of “educational institution” as per Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017 and hence cannot claim exemption as per entry no.69 of the same notification”.

“The Education being provided by the applicant is not exempt under Entry No.69 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017 and the service provided by the Applicant through ISHA Samskriti is not exempt under any other notification” the Authority noted.

To Read the full text of the Order CLICK HERE

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