AAR Rules Student Services Charged Directly Not Exempt from GST

Case Details: Protego Services LLP, In re - [2025] 176 taxmann.com 147 (AAR - GUJARAT)

Judiciary and Counsel Details

• Kamal Shukla & Vishal Malani, Member
• Ms. Raveena Narang, CA & Ms. Arptia Modi, Adv. for the Applicant

Facts of the Case

The applicant, engaged in the business of providing transportation and catering services to students of a school, collected fees directly from the students for such services. No consideration for these services was received by the school administration. The applicant sought a ruling on whether these services would be eligible for exemption under serial no. 66(b)(i) & (ii) of Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017, as services provided to an educational institution. It was contended that since the services related to students and staff members of the school, exemption might be applicable. The matter was accordingly placed before the Authority for Advance Ruling (AAR), Gujarat.

AAR Held

The AAR held that the applicant is collecting charges for transportation and catering directly from the students, and no payment is received from the school administration. Consequently, no services are rendered to the school by the applicant, and the school has no role in the transaction. The AAR observed that services provided by the applicant to the students cannot be considered as services provided to the school. Accordingly, the applicant is not eligible for exemption under serial no. 66(b)(i) & (ii) of Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017 in respect of transportation and catering services provided to students.

List Of Cases Reviewed

• Muniyasamy Abinaya, In re [2023] 154 taxmann.com 383/100 GST 383/78 GSTL 93 (AAR – T.N.)
• Akshar Travels v. C.C.E. & S.T. [ST Appeal No. 263 of 2012-DB, dated 17-8-2023]
• Sangam Travels v. CCE & ST [FINAL ORDER No. 70074 of 2017, dated 10-1-201 [Para 17] – distinguished

List of Cases Referred To

• Muniyasamy Abinaya, In re [2023] 154 taxmann.com 383/100 GST 383/78 GSTL 93 (AAR – T.N.) (para 5)
• Akshar Travels v. C.C.E. & S.T. [ST Appeal No. 263 of 2012-DB, dated 17-8-2023] (para 5)
• Sangam Travels v. CCE & ST [FINAL ORDER No. 70074 of 2017, dated 10-1-2017] (para 5)