2026-VIL-50-AAR
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SGST Advance Ruling Authority

GST – Gujarat AAR - Whether an educational institution established under an Act of Parliament is a 'specified person' liable for Tax Deduction at Source (TDS) under Section 51 of the CGST Act, 2017 read with Notification No. 50/2018-Central Tax dated 13.09.2018 - Whether the applicant, established under the Indian Institutes of Management Act, 2017 is a 'specified person' under Section 51 of the CGST Act read with Notification No. 50/2018-Central Tax dated 13.09.2018 - HELD - The Supreme Court interpretation in the case of Commissioner of Central Excise and Service Tax Vs Shapoorji Pallonji and Company Pvt. Ltd., held that the condition of 51% or more Government participation by way of equity or control applies only to entities "established by Government" and not to those "set up by an Act of Parliament" - The Indian Institutes of Management Act, 2017 provides for substantial control of the Central Government over the functioning of the applicant institute. The term 'control' as contemplated cannot be interpreted to refer to day-to-day operational control, but rather a substantial regulatory control, which is present in the case of the applicant. The composition of the Board cannot be a determinative factor to ascertain the quantum of control by the Central Government - The applicant has substantial control and oversight by the Central Government as per the provisions of the Indian Institutes of Management Act, 2017, and hence, qualifies as a 'specified person' under the Notification - The applicant is a 'specified person' under Section 51 of the CGST Act read with Notification No. 50/2018-Central Tax dated 13.09.2018 – Ordered accordingly - Whether the threshold of Rs. 2,50,000 for deduction of tax at source is to be determined on the value of supply under each contract regardless of the number of invoices issued – HELD - In case of a single contract, the threshold value of Rs. 2.5 lakhs applies to the total value of supply under the contract, excluding the GST payable. In case of separate contracts with the same supplier, each contract would be considered individually for the purpose of applying the threshold value of Rs. 2.5 lakhs. However, if the supply is made on a continuous basis or a recurrent basis, but is part of the original contract, the threshold value would be applicable on the contract and not the individual supplies. It is the contract which determines the threshold value of Rs. 2.5 lakhs and not the invoices.
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