Classification of service— The applicant M/s University of kota, has raised the following question for advance ruling in the application for Advance Ruling filed by it.
Whether the services provided by the University of Kola relating to affiliation granted to colleges for imparting education is a supply of service liable to levy of GST under the CGST Act, 2017? It yes, whether amount collected by way of affiliation fee, are exempted vide S.No 66 of Notification No.12/2017-CT (Rate) dated 28.06.2017?
The applicant is a University established under the University of kota Act, 2003. Applicant undertake activities related to affiliation of colleges as affiliated, professional or post graduate colleges under conditions prescribed and to withdraw affiliation from colleges; to approve colleges providing course of study for admission to the examinations for titles and diplomas of the University under conditions prescribed and to withdraw such approval; to designate any college as an autonomous college with the concurrence of the Government in the manner and under conditions prescribed and to cancel such designation and collect various fees in this regard from the institutions; to collect affiliation fee charged by the applicant from various self-financing/non-government colleges / government colleges as decided by the Affiliation Fee Committee which varies from course to course for which affiliation is provided and notified by the university with copies to education department etc.
It is the contention of the applicant that "affiliation" is the exempted supply with purpose to the colleges for admission of students and/ or conduct of examinations for the purpose of getting a degree and therefore the exemption provided under SI.No. 66(b){iv) of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended by Notification No.2/2018 with effect from 25.01.2018 is applicable to the said supply.
In the case at hand, it is evident that the affiliation services provided by the applicant enables the said institution to conduct the course/programme and do not relate to admission of students to such course/programme in the said institutions or conduct of examination for such admission in the said institution. Also, the exempted services on the conduct of examination is that related to the admission to such institution and not related to the examination based on which degree/title, etc are conferred to the students, as is being claimed by the applicant, though we do not part any opinion on the claim of the applicant that they extend such services to the institutions by extending the affiliation. Therefore, we hold that 'affiliation' fees so collected by the applicant is not exempted under the entry SI.No.66 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended.
Held that— The affiliation provided by the Kota University to its constituent colleges for imparting education is a supply and taxable under GST. The amount collected by way of affiliation fees is not exempted vide SI.No. 66 Notification No.12/2017-CT (Rate) dated 28.06.2017 as amended.