Executive Post Graduate Programme in Management conducted by IIM not exempted from GST: AAR of Madhya Pradesh

Categories: Advance Ruling
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Indian Institute of Management, Indore (IIM, Indore) is one of the nineteen IIMs set up by the Government of India. The Applicant institute was established in 1996 by the Government of India as registered society under the Madhya Pradesh Societies Registration Act, 1973 and is governed by a Board of Governors. He received the Presidential assent on 31.12.2017, and the same has been notified to be effective from 31.01.2018. As per the said Act, the Board of Governors shall be Principal Executive Body of the Institute.

Issues Involved:  

The following questions have been posed before the Authority, with reference to the activity undertaken by the Applicant:

  1. Whether the course – Executive Post Graduate Programme in Management (EPGP), after enactment Indian Institute of Management Act 2017 notified effective from 31st January 2018, is exempted from Goods and Service Tax?
  2. In case of exemption to EPGP, will total amount of fees collected towards EPGP for the academic session 2018-19 is exempted, whether collected before or after enactment of IIM Act 2017 or only amount collected after enactment of IIM Act 2017?


The Hon’ble AAR of Madhya Pradesh vide Advance Ruling Order Nos. 10, 14 OF 2018 & OTHS. Dated August 10, 2018 stated that the Executive Post Graduate Programme will not be eligible for exemption from GST as the same has been categorically excluded from exemption under Entry No.67 to the Notification No.12/2017-Central Tax (Rate) and corresponding notification under MPGST Act, 2017 It is pertinently noted that this particular entry i.e. Entry No.67 is exclusively for providing exemption to the services provided by Indian Institutes of Management, by Heading No. 9992 which stated that Services provided by the Indian Institutes of Management as per the guidelines of the Central Government to their students by way of following educational programmes, except Executive Development Programme-

  1. Two-year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which the admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management.
  2. Fellow Programme in Management.
  3. Five-year integrated programme in Management.

The language of entry no.67 is quite clear and leaves no ambiguity whatsoever. This entry seeks to exempt various education programmes conducted by IIMs, except the Executive Development Programme, from payment of GST. And The Executive Post Graduate Programme being conducted by the Applicant shall be chargeable to GST, irrespective of enactment of IIM Act 2017.

Thus,Executive Post Graduate Programme conducted by Applicant shall be chargeable to GST, irrespective of enactment of IIM Act 2017. This ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104(1) of the GST Act.

Citation: [2018] 97 taxmann.com 318 (AAR-MADHYA PRADESH)