The Karnataka Authority of Advance Ruling (AAR) rendered that 18% GST on earned income through the research and training projects funded via ministries of the government of India and the state government of Karnataka.
The petitioner, Sai Gopalkrishna Bhat accumulated the enrollment as a proprietary case beneath the law of Central Goods and Services Tax Act, 2017 as well as the Karnataka Goods and Services Tax Act, 2017, and the registration was revoked w.e.f 01.09.2019. Since he does not enroll under the GST act currently and he would be recognized as an unregistered individual. The applicant is a professor of law at the National Law School of India University, Bengaluru, and is involved in the classroom teaching and training for the students and the other personnel.
The petitioner seeks the advance ruling on the problem that if the earned income via conducting guest lectures, amounts to or the results to as the taxable supply of services that when the earned income from the research and training projects funded via ministries of Government of Inda and state Government of Karnataka, amounts to or results to as the taxable supply of service to be taxed at Nil rate as per Heading 9992 and whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at (Integrated Tax) 18 % under Heading 9983.
Two judges Dr M.P.Ravi Prasad and T.Kiran Reddy ruled that the earned income through conducting guest lectures amounts to a taxable supply of services under entry No. (ii) of 21 of Notification No.11/2017 Central Tax (Rate) on 28.06.2017.
“In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%, the AAR stated.”
AAR mentioned that without the information of the recipient of service the service in question advantageous classification beneath SAC 9983 and draws the GST with 18% rate.
