CGST Circular 82/2019
| Circular Number | 82/2019 |
| Circular Date | 01-01-2019 |
| Download | |
To:
The Principal Chief Commissioners/ Chief Commissioners/ Principal
Commissioners/Commissioner of Central Tax (All) / The Principal Director
Generals/ Director Generals (All)
Madam/Sir,
Subject: Applicability of GST on various programmes conducted by the Indian
Institutes of Managements (IIMs) – Reg.
1) I am directed to invite your attention to the Indian Institutes of Management
Act, 2018 which came into force on 31 st January, 2018. According to provisions
of the IIM Act, all the IIMs listed in the schedule to the IIM Act are
“institutions of national importance”. They are empowered to (i) grant degrees,
diplomas, and other academic distinctions or titles, (ii) specify the criteria
and process for admission to courses or programmes of study, and (iii) specify
the academic content of programmes. Therefore, with effect from 31st January,
2018, all the IIMs are “educational institutions” as defined under notification
No. 12/ 2017- Central Tax (Rate) dated 28.06.2017 as they provide education as
a part of a curriculum for obtaining a qualification recognised by law for the
time being in force.
2) At present, Indian Institutes of Managements are providing various long
duration programs (one year or more) for which they award diploma/ degree
certificate duly recommended by Board of Governors as per the power vested in
them under the IIM Act,
2017. Therefore, it is clarified that services provided by Indian Institutes of
Managements to their students- in all such long duration programs (one
year or more) are exempt from levy of GST. As per information received from IIM
Ahmedabad, annexure 1 to this circular provides a sample list of programmes
which are of long duration (one year or more), recognized by law and are exempt
from GST.
3) For the period from 1st July, 2017 to 30th January, 2018, IIMs were not
covered by the definition of educational institutions as given in notification
No. 12/ 2017 Central Tax (Rate) dated 28.06.2017. Thus, they were not entitled
to exemption under Sl. No. 66 of the said notification. However, there was
specific exemption to following three programs of IIMs under Sl. No. 67 of
notification No. 12/2017- Central Tax (Rate): –
(i) two-year full time Post Graduate Programmes in Management for the Post
Graduate Diploma in Management, to which admissions are made on the basis of
Common Admission Test (CAT) conducted by the Indian Institute of Management,(ii) fellow programme in Management,
(iii)five years integrated programme in Management.
Therefore, for the period from 1st July, 2017 to 30th January, 2018, GST
exemption would be available only to three long duration programs specified
above.
4) It is further, clarified that with effect from 31st January, 2018, all IIMs
have become eligible for exemption benefit under Sl. No. 66 of notification No.
12/ 2017- Central Tax (Rate) dated 28.06.2017. As such, specific exemption
granted to IIMs vide Sl. No. 67 has become redundant. The same has been deleted
vide notification No. 28/2018- Central Tax (Rate) dated, 31st December, 2018
w.e.f. 1st January 2019.
5) For the period from 31st January, 2018 to 31st December, 2018, two
exemptions, i.e. under Sl. No. 66 and under Sl. No. 67 of notification No. 12/
2017- Central Tax (Rate), dated 28.06.2017 are available to the IIMs. The legal
position in such situation has been clarified by Hon’ble Supreme Court in many
cases that if there are two or more exemption notifications available to an
assessee, the assessee can claim the one that is more beneficial to him.
Therefore, from 31st January, 2018 to 31st December, 2018, IIMs can avail
exemption either under Sl. No 66 or Sl. No. 67 of the said notification for the
eligible programmes. In this regard following case laws may be referred
i. H.C.L. Limited vs Collector of Customs [2001 (130) ELT 405 (SC)]
ii. Collector of Central Excise, Baroda vs Indian Petro Chemicals [1997 (92)
ELT 13 (SC)]iii. Share Medical Care vs Union of India reported at 2007 (209) ELT 321 (SC)
iv. CCE vs Maruthi Foam (P) Ltd. [1996 (85) RLT 157 (Tri.) as affirmed by
Hon’ble Supreme Court vide 2004 (164) ELT 394 (SC)
6) Indian Institutes of Managements also provide various short duration/ short
term programs for which they award participation certificate to the executives/
professionals as they are considered as “participants” of the said programmes.
These participation certificates are not any qualification recognized by law.
Such participants are also not considered as students of Indian Institutes of
Management. Services provided by IIMs as an educational institution to such
participants is not exempt from GST. Such short duration executive programs
attract standard rate of GST @ 18% (CGST 9% + SGST 9%). As per information
received from IIM Ahmedabad, annexure 2 to this circular provides a sample list
of programmes which are short duration executive development programs,
available for participants other than students and are not exempt from GST.
7) Following summary table may be referred to while determining eligibility of
various programs conducted by Indian Institutes of Managements for exemption
from GST
| Sl.No. | Periods | Programmes offered by Indian Institutes of Management |
Whether exempt from GST |
|---|---|---|---|
| (1) | (2) | (3) | (4) |
| 1 | 1st July, 2017 to 30th January,2018 |
|
Exempt from GST |
|
Not exempt from GST |
||
| 2 | 31st January, 2018 onwards |
All long duration programs (one year or more) All short duration executive development |
Exempt from Not exempt |
8) This clarification applies, mutatis mutandis, to corresponding entries of
respective IGST, UTGST, SGST exemption notifications. Difficulty if any, in the
implementation of this circular may be brought to the notice of the Board.