GST on various programmes being conducted by the IIMs

GST on various programmes being conducted by the IIMs

With the enactment of the Indian Institutes of Management Act, 2017, GST implication on the IIMs has undergone various changes under GST programmes by IIMs and the same has been clarified by the board vide circular no. 82/01/2019-GST dated 1st January 2019.

Phase-wise taxability of IIMs, as clarified by the board, under GST programmes by IIMs is being summarized in the current article with respect to various programs by IIM .

GST programmes by IIMs

Period 1ST July, 2017 Till 30th January, 2018

  • IIMs is eligible for exemption available at sr. no. 67 to notification no. 12/2017 – Central Tax (Rate) dated 28th June, 2017.
  • As per above serial no. only the following service provided by the IIMs to its students is exempt, however, all the other services are taxable –
    • 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 conducted by the IIMs.
    • Fellow programme in Management.
    • 5 years integrated programme in Management

Period 31st January, 2018 till 31st December, 2018

  • The Indian Institutes of Management Act, 2017 got enacted with effect from 31st January, 2018.
  • After enactment of the Act, IIMs got classified as educational institution and hence exemption at sr. no. 66 to notification no. 12/2017- Central Tax (Rate) dated 28th June, 2017 also got available to the IIMs.
  • As per sr. no. 66 all the services provided by an educational institution to its students, faculty and staff is exempt from GST.
  • Further above available exemption at sr. no. 67 to notification no. 12/2017- Central Tax (Rate) is also available.
  • Since both exemption available at sr. no. 66 and at sr. no. 67 is available to IIMs, the one which is beneficial can be adopted by the IIMs.

Period from 1st January, 2019 onwards

  • Vide notification no. 28/2018 – Central Tax (Rate) dated 31st December 2018, exemption available to IIMs at sr. no. 67 has been omitted.
  • The exemption at sr. no. 66 to notification no. 12/2017 – Central Tax (Rate) is only available to the IIMs.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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