Exemption not available for Child development program using Abacus as it is neither ‘art’ nor ‘recreational activity’: AAR of Gujarat

Categories: Advance Ruling
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Facts: M/s. Omnisoft Technologies Pvt. Ltd. (OTPL) is engaged in IT business and education sector, with thrust on the franchisee model. The applicant has submitted that in the non-IT field, it has ventured in diverse segments, which has also lead to overall skill development of children involved in the said field.

Issues Involved:

The activity provided by UCMAS S (Universal Concept Mental Arithmetic System)  using abacus whether qualifies for exemption from the payment of GST?

Held: The Hon’ble AAR of Gujarat vide Advance ruling No. GUJ/GAAR/R/2018/15 dated August 23, 2018 observed that as per the dictionary meaning, ‘Art’ is an expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power”. It further observed that, “Heading 9996 – Recreational, Cultural and sporting services and more specifically Group 99962 – Performing arts and other live entertainment event presentation and promotion services and Group 99963” of services rate do not cover the activity performed by applicant. So, M/s. Omnisoft Technologies Private Limited is not entitled to the exemption provided under Sl. No. 80 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and corresponding entry in IGST Act. Hence the activity provided by UCMAS using abacus does not qualify for exemption from the payment of Goods and Services Tax.

Citation: [TS-520-AAR-2018-NT]