Affiliation Provided By Kota University To Its Constituent Colleges For Imparting Education Is A Supply, Attracts GST: Rajasthan AAR
The Rajasthan Authority of Advance Ruling (AAR) has observed that affiliation provided by Kota University to its constituent colleges for imparting education is a supply and taxable under GST.The two-member bench of Umesh Kumar Garg and M. S. Kavia has observed that the affiliation services provided by Kota University enable the institution to conduct the course or programme and do not relate...
The Rajasthan Authority of Advance Ruling (AAR) has observed that affiliation provided by Kota University to its constituent colleges for imparting education is a supply and taxable under GST.
The two-member bench of Umesh Kumar Garg and M. S. Kavia has observed that the affiliation services provided by Kota University enable the institution to conduct the course or programme and do not relate to the admission of students to the course or programme or the conduct of examinations for admission to the institution. The exempted examination services are those related to admission to the institution and not to the examination based on which degree, title, etc. are conferred to the students, as claimed by the applicant. Therefore, the "affiliation" fees collected by Kota University are not exempt from GST.
The applicant, the University of Kota, has been enacted under a special act of the state legislative assembly, and thus the applicant has been established by the government of Rajasthan through the University of Kota Act, 2003. The applicant is engaged in providing education services, including affiliation with various self-financing and non-government colleges under its jurisdiction, as per the education policy of the State Government.
The applicant is also registered under Section 12AA of the Income Tax Act of 1961 and engaged in charitable activities.
The applicant grants recognition to the colleges under its jurisdiction and collects affiliation fees as approved by the state government. By virtue of affiliation, colleges are able to impart education to students. Admissions to colleges are done under the University of Kota only, and the applicant is the university, which conducts exams, issues mark sheets, declares results, and awards degrees.
The applicant has sought an advance ruling on the issue of whether the services provided by the University of Kola relating to affiliation granted to colleges for imparting education are a supply of service subject to the levy of GST under the CGST Act, 2017.
The Joint Commissioner submitted that affiliation fees collected by applicants from various colleges are taxable at the rate of 18% under SAC Code 9997.
The AAR noted that the activity of affiliation is to monitor whether the institution possesses the required infrastructure in terms of space, technical prowess, financial liquidity, faculty strength, etc. and is thereby eligible for the privileges to conduct the course or programme of study for the degree or title extended by the university to the students enrolled in institutions.
The Authority held that only the services relating to admission or to the conduct of examinations by such institutions, i.e., only the services relating to the admission of students or the conduct of examinations, are exempt, and the other services are chargeable to the applicable GST.
Applicant's Name: M/s University of Kota
Date: 11.11.2022