Haryana AAR Order In the Case of M/s Sachdeva Colleges Limited
M/s Sachdeva Colleges Limited
Facts of the Case:
M/s Sachdeva college Ltd. is a Limited company incorporated under the Companies Act (hereinafter referred to as the ‘Applicant”) having its Regd. office at 29, South Patel Nagar, New Delhi-110008.
(i) The applicant is providing training at its place of business at 29, South Patel Nagar, New Delhi-I10008, in terms of Letter No. T-l/2017/25229 and T-l/2017/25236 dated 07.11.2017 to the selected candidates sponsored by Directorate of the welfare of Scheduled Caste and Backward Classes Department, Haryanasco,42-44, Sector-17A, Chandigarh.
(ii) The applicant is engaged in the field of providing “Education” which is not defined under the GGST Act, but as per Apex court decision in Loka Shiksha Trust vs. CIT, Education is a process of training and developing knowledge, skill, and character of the student by normal schooling.
(iii) The applicant has submitted an agreement for providing the above training which is duly attested by Notary dated 2I Nov. 2017. In terms of the agreement, a training fee is to be received from the Directorate of the welfare of scheduled caste and Backward Classes Department, Haryana SCO, 42-44, Sector- I 7A, Chandigarh.
(iv) The applicant has further submitted that the transactions pertain to the Financial Year 2017-2018 and no Show Cause notice has been received till the filing of the present petition.
(v) The present petition is filed by the applicant under Section 97(1) (e) and (l) (f) of the CGST Act.
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During the virtual hearing of the case, the applicant is heard in detail. The comments of the proper officer of the ward concerned to the applicant are not required in this case as the applicant is an unregistered person. Secondly, this issue has already been dealt with the department on the representation of the Directorate of the welfare of Schedule caste and Backward class, Department of Haryana, Chandigarh, and replied by the department vide this office memo No. 2072/GST -2, dated 21-06-2018 which is reproduced below:
“lt has been informed vide your above-referued memo (No. 2018/5314, dated 15-03-2018) that the Department of the welfare of SC and BC, Haryana implements three types of the scheme i.e. state schemes, sharing basis Centrally sponsored scheme and 100% centrally sponsored schemes. Regarding the schemes in which scholarship or monetary relief or grant is given directly to the beneficiary either in the Aadhar Enabled account or in the bank account, no GST is to be paid.
In the schemes related to imparting of training, entry No. 72 of the Haryana Government, Excise & Taxation Department, Notification No. 47/ST-2. Dated 30-06-2017 (which deals with exemption of GST on services) may be perused as per which for “services provided to the Central Government, State Government, (Union Territory Administration under any training program for which total expenditure is borne by the Central Government, State Government, Union Territory Administration”, the rate of tax is nil. Regarding other schemes in which there is either supply of goods or services, GST as applicable on supply of such goods or services or both shall be charged.”
The applicant is providing training for JEE (Non-Med.) and NEET (Med.) to the selected candidates at the behest of Directorate of the welfare of Schedule caste and Backward class, Department of Haryana, Chandigarh, class l2th Non-Medical and Medical aspirants. The applicant has placed reliance on entry No. 72 of notification No. 47 dated 30-06-2017.
This authority also agrees with the operative part of the above-stated letter issued to the Director, welfare of Scheduled Caste and Backward Classes Department, Haryana. Therefore, the training imparted by M/s Sachdeva colleges Ltd. to the students selected through Directorate of Haryana for JEE (Non-Med.) and NEET (Medical) is exempt under entry 72 of Notification No. 47 of the HGST Act subject to that the whole expenditure is borne by the Center/State Government. Further, section 23 of the Act provides that any person engaged exclusively in the business of supplying goods and services or both that are not liable to tax or fully exempt from tax under this Act or under the Integrated Goods and service Tm Act. so the applicant is not liable for registration till he supplies goods and services or both that are not liable to tax or fully exempt from tax under the GST Acts.
The advance ruling application is decided accordingly.