No GST Exemption for Executive PG Programme at IIM: AAR

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No GST Exemption for Executive PG Programme at IIM: AAR 

The executive post-graduate programme at the Indian Institute of Management (IIM) is subject to GST, the Authority for Advance Ruling of Madhya Pradesh said in ruling that such course will not be exempted from the Goods and Services Tax (GST). The GST rate on such course is 18 per cent. 

“The Indian Institute of Management-Indore had approached the AAR for a ruling on two issues: first, whether the course —Executive Post Graduate Programme in Management (EPGP) — attracted GST, as the Indian Institute of Management Act 2017, notified with effect from January 31, is exempted from the tax. The second was whether the fees collected for the programme for the academic session 2018-19 is exempted; whether it is applicable for the fees collected before the enactment of IIM Act 2017 or only for the amount collected after the enactment of the Act?” 

The Indian Institute of Management-Indore submitted that the services provided by an educational institution are exempted under two notifications for exemption. 

First 11/2017 notification prescribes GST at the rate of 18 per cent on educational services, while the second  (12/2017) prescribes exemption for certain categories under educational services.

In notification also said “services provided by an educational institution to its students, faculty and staff and also various services such as catering, security and conducting examination provided to the educational institutions will not attract GST.”

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“The said notification also exempted the two-year full-time Post Graduate Programmes in Management (for which the admissions are made on the basis of Common Admission Test -CAT), Fellow Programme in Management and Five-year integrated programme in Management, from GST. The notification by the Madhya Pradesh Government had also listed the same three programmes.” 


The AAR  clarified that there is no ambiguity in the notification. The entry in the notification seeks to exempt various education programmes conducted by IIMs, but the Executive Development Programme, from payment of GST, will not exempted by said notification. 

Source: The Hindu Businesse Line, taxscan

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