Whether NID would qualify as ‘Governmental Authority’ as defined under the IGST Act, 2017?

This advance ruling examines whether the National Institute of Design (NID) should be classified as a 'Governmental Authority' under the IGST Act, 2017. NID, established by an Act of Parliament, argued it meets certain criteria for this classification. The ruling considers NID's governing structure, including the Visitor appointed by the President of India and the composition of its Governing Council, which involves nominations from the Central Government.

GUJARAT AUTHORITY FOR ADVANCE RULING,
GOODS AND SERVICES TAX,
D/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/08/2021
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2020/AR/35)
Date: 20.01.2021

Name and address of the applicant : M/s. National Institute of Design,
Paldi, Ahmedabad-380007.

GSTIN of the applicant : 24AAATN1137D1Z6
Date of application : 16.07.2020.

Clause(s) of Section 97(2) of CGST
/ GGST Act, 2017, under which
the question(s) raised.
: (b) Applicability of a notification
issued under the provisions of this
Act.
(e) Determination of the liability to
pay tax on any goods or services
or both.
(f) Whether applicant is required to
be registered.

Date of Personal Hearing : 23.12.2020

Present for the applicant : Shri Hardik Shah

B R I E F FA C T S

The applicant M/s.National Institute of Design, Paldi, Ahmedabad(hereunder referred to as ‘NID’ or ‘the Applicant’) having registration no24AAATN1137D1Z6 has been declared as an institution of national importancefor promotion of quality and excellence in design education, research and training in all disciplines relating to Design and for matters connected therewith or incidental thereto. The NID Act regulates NID by laying down its powers, functions and responsibilities. The applicant has submitted a copy of the NID Act along with their submission as well as the copy of their registration with GST authorities.

2. The applicant has submitted that according to Section 9 of the NID Act, the President of India would be the visitor of the institution, who may appointone or more persons to review the work and progress of the institute or to hold the inquiries into affairs of the institute and to report them in such manner ashe directs and that on the basis of the report, the visitor shall take suchactions and issue such directions as he may consider necessary, which shall bebinding on the Applicant. The applicant has explained some of the sections of the NID Act as under: 

(1) Section 10 of the NID Act provides that a Governing Council (‘Council’) shall be an authority of the institution. Moreover, as per Section 11 of the NID Act, Council would comprise of a chairperson who would benominated by the President of India. Apart from chairperson, the Councilalso shall have such number of members, who are nominated by CentralGovernment, State Government or visitor / President or Senate of NID.Further, the Director of the Applicant would also be appointed by Central Government as per Section 18 of NID Act.

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