The West Bengal Advance Ruling Authority (AAR) has held that the Indian Institute of Management ( IIM ) should be treated as an ‘educational institution’ for the purpose of getting the GST exemption.
Before the authority, the applicant, Indian Institute of Management, Kolkata sought for a clarification that whether they should be treated as an “Educational Institution” after the enactment of the IIM Act w.e.f 31.01.2018 and whether they are eligible for the GST Exemption under Notification No. 12/2017 Central Tax (Rate).
The applicant submitted that they are eligible to grant degrees, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions in terms of section 7(f) of the IIM Act. Therefore, they qualify as an ‘educational institution’ as defined under clause 2(y) of the Notification No. 12/2017 Central Tax (Rate) dated 28/06/2017 and is eligible for exemption under entry no. 66(a) of the Exemption Notification.
After considering the arguments, the authority noted that the IIM Act does not mention any specific degree/diploma/program that can be or shall be undertaken by the Applicant. “In absence of such specification, reference should be made to the degrees/programmes recognized and approved by the University Grants Commission Act 1956 and the All India Council for Technical Education Act, 1987 that can be lawfully awarded by any higher educational institution in the country. It can be seen that the AICTE Act and the UGC Act are very specific and detailed about the approved courses/programmes under it,” the order said.
“The Applicant is an “Educational Institution” within the meaning of sub-clause (ii) of clause 2(y) of the Exemption Notification in terms of the IIM Act. The exemption under Entry no. 66(a) is applicable to such educational institutions as such, especially as the law mentions that the qualifications awarded are to be “recognized by any law for the time being in force”. As Entry No. 67 specifically concerns IIMs, courses mentioned therein, will be eligible for Exemption under the specific entry, even if not mentioned elsewhere under any law for the time being in course. Hence, it can be concluded that both the provisions of the law are available to the Applicant,” the authority said.
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