GST
TRT-2025-
Telangana High Court
Date:-22-11-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 22 November 2022
Facts –
- The Applicant M/s. Magnetic Infotech Private Limited is engaged in providing pre and post examination services to the Educational Boards, Universities and Open Universities. The applicant has entered into agreements with various educational institutions located in different States.
- They are providing services such of Data processing for conduct of examination, Results Preparation, Generation and printing of statistical data and reports in the prescribed Performa as required by the educational institutions.
Issue –
- Whether GST exemption is available to the applicant in respect of the pre and post Examination services being provided to the Educational Boards and Universities (including Open Universities)?
Order –
- The AAAR gone through the Sl.No. 66(b) of the Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017, as amended and observed that exemption is available when services are provided to an educational institution, by way of … Services relating to admission to, or conduct of examination by, such institution. In other words, the exemption would be available when the services are provided “to” an educational institution for services relating to admission to, or conduct of examination by, such institution.
- However, since in the present case the main contractor to whom the applicant is to provide services as subcontractor is not an educational institution, though the services are allegedly being provided to the Educational Boards and Universities by the main contractor, the exemption contained in the impugned notification is not available to the applicant.
- When exemption contained in a notification is to be claimed, an applicant is to satisfy the conditions prescribed therein. The wordings of any notification have to be strictly read to allow or deny any exemption.
- Hence the applicant, as a subcontractor, is not eligible to claim exemption as available under Notification No. 12/2017-(R), dated. 28.6.2017.
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