The Gujarat Authority of Advance Ruling (AAR) ruled that the educational assessment examination, Assessment of Scholastic Skills Through Educational Testing (ASSET) provided to school/educational organizations is exempted from the payment of GST.
The Applicant, M/s. Education Initiatives Pvt. Ltd. deals in the products and solutions mainly intended to be used by the K-12 education segment i.e. primary and secondary schools for the assessment and learning.
The applicant is working with private schools, public schools and leading organizations like the World Bank, Michael and Susan Dell Foundation, Google, Azim Premji Foundation and is doing large scale assessment projects with various state Governments.
Among others, one of the offers offered by the Applicant to the schools is ASSET. The Schools use ASSET for the purpose of assessment, ASSET has gained wide acceptance across the schools for the purpose of diagnostic assessment of its students.
The applicant sought advance ruling on the issue whether the educational assessment examination (ASSET with its variants) provided by the applicant to school/educational organization is exempted from payment of GST under Sr. No. 66(b)(iv) of the Notification No. 12/2017-CT (rate) dated June 28, 2017 and entry No. 69(b)(iv) of Notification No. 9/2017-Integrated Tax (Rate) dated June 28, 2017 as well as equivalent SGST Notification.
The two-member bench of Sanjay Saxena and Mohit Agarwal ruled that GST exemption is available in respect of ASSET services provided to educational institutions.
It is observed that the said school is providing education up to Higher Secondary and affiliated to Central Board of Secondary Education (CBSE). Further, the terms and conditions of the said agreement reveal that the applicant has made an agreement with the School for the supply of ASSET multiple question papers. Accordingly, AAR holds that the first condition has been fulfilled in respect of the claim of subject exemption.
“The Supreme Court, while interpreting the term ‘relating to’ and ‘in relation to’, has assigned a wide and broad view of the term. Therefore, we hold that second condition for availing the exemption has also been satisfied in the instant matter,” the AAR noted.
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