It was argued that the applicant qualifies 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. The applicant claimed that they are eligible to tax exemption in respect of long duration postgraduate diplomas and degree-granting programmes. They also claimed that exemption is available for the supply of online journals and periodicals to the IIM is also exempted from reverse charge mechanism in view of the Notification No 02/2018.
Earlier, the Advance Ruling Authority had denied exemption to the applicant.
The Appellate authority held that with effect from 31st January 2018, the long duration fast graduate diploma/ degree programs offered by IIM13, where a degree/ diploma is conferred as recommended by the Board of Governors as per the power vested on them under the IIM Act, 2017, will be eligible for exemption from GST by virtue of Sl.No 66 of the Notification No 12/2017 CT(R) dated 28.06.20 17 as amended.
Regarding the supply of online educational journals or periodicals to the IIMB, the authority held that the said supply would be exempted from reverse charge.
The Appellant in their additional submissions have stated that they subscribe to on journals and periodicals for its students and faculty, both from within India and abroad.
“The exemption as per the above Notification is applicable to an educational institution (other than pre-school educational institutions, institutions offering education up to higher secondary school or equivalent and vocational educational institutions), when they receive online journals and periodicals from a supplier located in a non-taxable territory. We have already concluded that TIMB is an educational institution as defined in clause 2(y) of the Notification No 12/2017 CT (R) dated 28.06.2017 and it is an educational institution which offers a qualification recognized by law. Therefore, the receipt of online journals and periodicals by LIMB from a person located in a non-taxable territory will be eligible for exemption from payment of IGST in terms of Sl No 10 of Notification No 09/2.017 IT (R) dated 28.06,2017 as amended., In the case of online journals and periodicals received by 11MB from domestic service providers., the exemption from payment of SST will be available to the domestic suppliers on intra-state- supplies by virtue of SI No 66 (b) (v) of Notification No 12/2017 CT (R) dated 28.06,2017, and exemption on inter-state supplies will be available vide Sl. N0 69 of Notification dated 28.06.2017,” the authority said.To Read the full text of the Order CLICK HERE