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BHARATIYAR UNIVERSITY, TAMIL NADU AAR

Bharatiyar University, Tamil Nadu AAR, Order Date 19.11.2020:

ISSUE:

  • Whether the services provided by the University to its constituent colleges (viz) self-financing and management colleges relating to admission to, or conduct of examination by such institution by way of affiliation fee, registration fee such as Application form fees, Inspection fees (each course/section) are exempted from GST under Notification No.12/2017-CTR dated 28.06.2017?

RULE:

  • The services provided by a university to its constituent colleges relating to admission to, or conduct of examination by such institution by way of affiliation fee, registration fee are not exempted from GST.

FACTS:

  • Bharatiyar University is a public university established by the Government of Tamil Nadu.
  • The university provides a variety of services to its constituent colleges, including affiliation, examination, and inspection.
  • The university charges fees for these services.
  • The university applied to the Authority for Advance Ruling (AAR) in Tamil Nadu for a ruling on whether the fees collected for affiliation, examination, and inspection are exempted from GST under Notification No.12/2017-CTR dated 28.06.2017.
  • The AAR held that the fees collected for affiliation, examination, and inspection are not exempted from GST.

HELD:

  • In the case of Bharatiyar University, Tamil Nadu AAR, the Authority for Advance Ruling (AAR) held that the fees collected by the university for affiliation, examination, and inspection are not exempted from GST.
  • The AAR reasoned that the services provided by the university are not related to the education provided by the colleges.
  • The fees collected by the university are for the purpose of affiliation and examination, which are distinct services from the education provided by the colleges.
  • Therefore, the services provided by the university are not covered by the exemption under Notification No.12/2017-CTR dated 28.06.2017.
  • The fees collected for affiliation are for the purpose of granting permission to the colleges to offer courses and admissions.
  • The fees collected for examination are for the purpose of conducting examinations for the students of the colleges.
  • The fees collected for inspection are for the purpose of ensuring that the colleges are complying with the requirements of the university.
  • The AAR held that these fees are not related to the education provided by the colleges.
  • They are distinct services that are provided by the university to its constituent colleges. Therefore, the fees collected for these services are not exempted from GST.