The court ruled that IGST at the rate of 18 per cent
would be imposed on both kinds of supply.
The court said a notification issued by the government
in June 2017 on the effective rate of tax for
inter-state supply of goods has not provided any
exemption or concessional rate of IGST based on end use
of mattresses.
Inferring from the order, experts say that goods, unlike
services, supplied to educational institutions would
draw IGST.
Sandeep Sehgal, partner-tax at AKM Global, said the AAR
ruling emphasizes on the difference between supply of
goods and services provided to educational institutions.
“The authority has clarified that the exemption
notification is available only for the supply of
services but does not apply to the supply of goods to
educational institutions,” he said.
Source::: BUSINESS STANDARD,
dated 27/04/2023.