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HomeUncategorizedGST AAAR: No Tax Exemption on Contract Services to Institutions

GST AAAR: No Tax Exemption on Contract Services to Institutions



Arpit Kulshrestha

Telangana GST AAAR'S Order for Magnetic Infotech Pvt Ltd

The Telangana GST AAAR held, no GST exemption would be there on the sub-contract services to the educational boards.

The two-member bench of B.V. Sivanaga and Neetu Prasad sees that the GST exemption is available when the services are furnished to the educational institution for the services concerned with the admission to or the conduct of the examination via the institution.

The petitioner, business of furnishing the pre and post-examination services to the educational boards, open universities and other universities. The petition entered into an agreement with distinct educational institutions located in distinct states.

The functioning of the services consists of the processing of the results of the examination. The same comprises the collection of the examination forms via the students and their processing along with the generation of the checklists which would be sent to the related educational institutions for verification and correction of errors.

The same would comprise the corrections in the checklist, updated to make the data free from error, the generation of hall tickets or admit cards, and photo attendance sheets that are sent to the examination centres. processing the minor roll data, generation of OMR sheets for receiving marks, and conducting the examinations with the student information.

The after-examination services consist of the marks provided via the evaluation centres, capturing, summarising and purifying the data, processing the results by using all the rules and creating the result sheet, tabulating, declaring the results, and providing the marks memos to particular students.

The petitioner seeks an advance ruling on the problem of whether the GST exemption would be available to the petitioner for the examination services being provided to universities, open universities and educational boards. Authority members for the advance ruling do not reach a unanimous decision.

AAAR, the major contractor to whom the petition would furnish the services as a subcontractor does not an educational institution but the services would be allegedly furnished to the educational boards and universities through the main contractor, the exemption comprised in the impugned notification would not be available with the petitioner. When the exemption comprised in the notification would be claimed the petitioner needs to satisfy the conditions mentioned in it. All the wording of any notification would be strictly read to permit or deny any exemption.





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