Download Document

Circular No. 82/01/2019- GST
1

F. No. 354/428/2018-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax research Unit
****
Room No. 146, North Block,
New Delhi, the 1
st
January, 2019
To:
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioner of Central Tax (All) /
The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject: Applicability of GST on various programmes conducted by the Indian
Institutes of Managements (IIMs) – Reg.
I am directed to invite your attention to the Indian Institutes of Management Act, 2018
which came into force on 31
st
January, 2018. According to provisions of the IIM Act, all the
IIMs listed in the schedule to the IIM Act are “institutions of national importance”. They are
empowered to (i) grant degrees, diplomas, and other academic distinctions or titles, (ii)
specify the criteria and process for admission to courses or programmes of study, and (iii)
specify the academic content of programmes. Therefore, with effect from 31
st
January, 2018,
all the IIMs are “educational institutions” as defined under notification No. 12/ 2017- Central
Tax (Rate) dated 28.06.2017 as they provide education as a part of a curriculum for obtaining
a qualification recognised by law for the time being in force.
2. At present, Indian Institutes of Managements are providing various long duration
programs (one year or more) for which they award diploma/ degree certificate duly
recommended by Board of Governors as per the power vested in them under the IIM Act,
2017. Therefore, it is clarified that services provided by Indian Institutes of Managements to
their students- in all such long duration programs (one year or more) are exempt from levy of
GST. As per information received from IIM Ahmedabad, annexure 1 to this circular provides
a sample list of programmes which are of long duration (one year or more), recognized by
law and are exempt from GST.

3. For the period from 1
st
July, 2017 to 30
th
January, 2018, IIMs were not covered by the
definition of educational institutions as given in notification No. 12/ 2017 Central Tax (Rate)

Circular No. 82/01/2019- GST
2

dated 28.06.2017. Thus, they were not entitled to exemption under Sl. No. 66 of the said
notification. However, there was specific exemption to following three programs of IIMs
under Sl. No. 67 of notification No. 12/2017- Central Tax (Rate): –

(i) two-year full time Post Graduate Programmes in Management for the Post Graduate
Diploma in Management, to which admissions are made on the basis of Common
Admission Test (CAT) conducted by the Indian Institute of Management,
(ii) fellow programme in Management,
(iii)five years integrated programme in Management.

Therefore, for the period from 1
st
July, 2017 to 30
th
January, 2018, GST exemption would be
available only to three long duration programs specified above.

4. It is further, clarified that with effect from 31
st
January, 2018, all IIMs have become
eligible for exemption benefit under Sl. No. 66 of notification No. 12/ 2017- Central Tax
(Rate) dated 28.06.2017. As such, specific exemption granted to IIMs vide Sl. No. 67 has
become redundant. The same has been deleted vide notification No. 28/2018- Central Tax
(Rate) dated, 31
st
December, 2018 w.e.f. 1
st
January 2019.

5. For the period from 31
st
January, 2018 to 31
st
December, 2018, two exemptions, i.e.
under Sl. No. 66 and under Sl. No. 67 of notification No. 12/ 2017- Central Tax (Rate), dated
28.06.2017 are available to the IIMs. The legal position in such situation has been clarified
by Hon’ble Supreme Court in many cases that if there are two or more exemption notifications
available to an assessee, the assessee can claim the one that is more beneficial to him.
Therefore, from 31
st
January, 2018 to 31
st
December, 2018, IIMs can avail exemption either
under Sl. No 66 or Sl. No. 67 of the said notification for the eligible programmes. In this
regard following case laws may be referred-
i. H.C.L. Limited vs Collector of Customs [2001 (130) ELT 405 (SC)]
ii. Collector of Central Excise, Baroda vs Indian Petro Chemicals [1997 (92) ELT 13
(SC)]
iii. Share Medical Care vs Union of India reported at 2007 (209) ELT 321 (SC)
iv. CCE vs Maruthi Foam (P) Ltd. [1996 (85) RLT 157 (Tri.) as affirmed by Hon’ble
Supreme Court vide 2004 (164) ELT 394 (SC)

Circular No. 82/01/2019- GST
3

6. Indian Institutes of Managements also provide various short duration/ short term
programs for which they award participation certificate to the executives/ professionals as
they are considered as “participants” of the said programmes. These participation certificates
are not any qualification recognized by law. Such participants are also not considered as
students of Indian Institutes of Management. Services provided by IIMs as an educational
institution to such participants is not exempt from GST. Such short duration executive
programs attract standard rate of GST @ 18% (CGST 9% + SGST 9%). As per information
received from IIM Ahmedabad, annexure 2 to this circular provides a sample list of
programmes which are short duration executive development programs, available for
participants other than students and are not exempt from GST.

7. Following summary table may be referred to while determining eligibility of various
programs conducted by Indian Institutes of Managements for exemption from GST.
Sl.
No.
Periods Programmes offered by Indian Institutes of
Management
Whether
exempt from
GST
(1) (2) (3) (4)
1
1
st
July, 2017
to
30
th
January,
2018
i. two-year full time Post Graduate Programmes
in Management for the Post Graduate Diploma
in Management, to which admissions are made
on the basis of Common Admission Test
(CAT) conducted by the Indian Institute of
Management,
ii. fellow programme in Management,
iii. five years integrated programme in
Management.
Exempt from
GST
i. One- year Post Graduate Programs for
Executives,
ii. Any programs other than those mentioned at
Sl. No. 67 of notification No. 12/2017- Central
Tax (Rate), dated 28.06.2017.
iii. All short duration executive development
programs or need based specially designed
programs (less than one year).
Not exempt
from GST
2
31
st
January,
2018 onwards
All long duration programs (one year or more)
conferring degree/ diploma as recommended by
Board of Governors as per the power vested in
them under the IIM Act, 2017 including one- year
Post Graduate Programs for Executives.
Exempt from
GST

Circular No. 82/01/2019- GST
4

All short duration executive development
programs or need based specially designed
programs (less than one year) which are not a
qualification recognized by law.
Not exempt
from GST

8. This clarification applies, mutatis mutandis, to corresponding entries of respective
IGST, UTGST, SGST exemption notifications. Difficulty if any, in the implementation of this
circular may be brought to the notice of the Board.


Yours Faithfully,


Susanta Mishra
Technical Officer (TRU)
Email:susanta.mishra87@gov.in
Tel: 011-23095558

Circular No. 82/01/2019- GST
5

Annexure 1: (Programmes exempt under GST Law)

The IIM- Ahmedabad refers such persons as their students who attend long duration
programmes offered by the Institute for which diplomas / degrees are awarded by the Institute.
These programmes are awarded based on the recommendation by the Board of Governors as
per the power vested in them under the IIM Act, 2017. Such programmes are:

1. Post-Graduate Programme (PGP) – 2-year program
2. Post-Graduate Programme in Food and Agri-Business Management (PGP-FABM) –
2-year program
3. Fellow Programme in Management (FPM) – 4 to 5-year program
4. Post-Graduate Programme in Management for Executives (PGPX) – 12 months (1
year) full time program
5. ePost-Graduate Programme (ePGP) – 2-year online program.

This list is an example of long duration programs recognised under IIM Act, 2017 offered by
IIM Ahmedabad. Similar programs offered by other IIMs of India may kindly be referred by
IIMs and tax authorities during assessment.

Circular No. 82/01/2019- GST
6

Annexure 2: Programmes not exempt under GST Law

The executives / professionals doing short term courses (less than one year) are considered
as “participants” of the programmes of the IIM Ahmedabad:
1. Armed Forces Programme
2. Faculty Development Programme
3. Executive Education
a. Customized Executive Programmes
b. Open Enrolment Programme

This list is an example of short duration executive development programs offered by IIM
Ahmedabad which are available to participants. Similar programs offered by other IIMs of
India may kindly be referred by IIMs and tax authorities during assessment.

***
circulars no 82 01 2019 gst | iKargos