Exemption not available to sub-contractor on services provided to educational institutions on behalf of main contractor

Last updated: 04 January 2023

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The Telangana AAAR has ruled that a sub-contractor, Magnetic Infotech Private Limited, cannot claim GST exemption for services provided to educational institutions. This is because the exemption under Notification No. 12/2017-Central Tax (Rate) is specifically for services provided directly to educational institutions, not indirectly through a main contractor. The ruling emphasised that exemption conditions must be strictly met, and in this case, the sub-contractor was not providing services directly to the educational institution.

Court :
AAAR, Telangana

Brief :
The AAAR, Telangana in the matter of M/s Magnetic Infotech Private Limited [Order-in-Appeal No. AAAR/13/2022 dated November 22, 2022] has ruled that the sub-contractor is not entitled to claim Goods and Services Tax ("GST") exemption on services provided to Educational Institutions on behalf of the main contractor under Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 ("the Services Exemption Notification").

Citation :
Order-in-Appeal No. AAAR/13/2022 dated November 22, 2022

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1999

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3499

(Excl. of GST ₹629)

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4999

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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