Chhattisgarh authority rules 18 percent Goods and Services Tax applies to IIM Raipur Foundation consultancy services

The Chhattisgarh Authority for Advance Ruling (AAR) has ruled that consultancy services rendered by the IIM Raipur Foundation for a rural livelihood project are subject to an 18% Goods and Services Tax (GST) rate. This determination establishes the tax treatment for advisory and consultancy assignments undertaken by academic bodies. Advance rulings provide legal certainty for taxpayers uncertain about the tax classification of specific supplies, preventing future disputes with revenue authorities.

Understanding the distinction between exempt educational services and taxable commercial consultancy is essential for compliant billing. Tax consultants and institutional administrators should review ongoing and upcoming consultancy projects to ensure correct tax collection and remittance. Proper classification avoids interest and penalty liabilities during subsequent audits.

Bottom line: Educational entities undertaking commercial or developmental consultancy must account for standard GST rates on such services.