No GST Exemption Available to Charitable Institute on Setting up Gurukul Style School with Own Curriculum | AAR

Case Details: Authority for Advance Rulings, Karnataka Isha Foundation, In re - [2023] 152 taxmann.com 456 (AAR-KARNATAKA)

Judiciary and Counsel Details

• • Dr M.P. Ravi Prasad & Kiran Reddy T., Member
  • Pushpaveni Kakkaje, Adv. for the Appellant.

Facts of the Case

The applicant was a Charitable Trust registered under GST and engaged in advancement of religion or spirituality or yoga. It was desirous to run a Gurukul style of residential school and filed an application for advance ruling to determine whether GST exemption would be available on establishing Gurukul to teach subjects like Sanskrit and English language, Indian classical music (Carnatic and Hindustani, Indian classical dance (Bharatanatyam and other forms), Kalaripayattu, Yoga and intellectual development.

AAR Held

The Authority for Advance Ruling noted that the applicant would be just teaching subjects like any other normal residential school but with a difference that subjects taught here would not be same. It was noted that there was no mention of any words like advancement of religion or spirituality or yoga in the deed provided by applicant.

However, the applicant was registered under section 12AB of Income tax Act but services which would be provided by the applicant through the said school would not qualify to be ‘charitable activities’ and therefore would not be eligible to claim exemption as per Serial No. 1 of Notification 9/2017-Integrated Tax(Rate).

Also, the applicant would not be providing pre-school education or education up to higher secondary school and would be following its own curriculum. Therefore, the applicant would not be covered under definition of “educational institution” as per Notification No. 9/2017-Integrated Tax (Rate).