No GST on services provided to educational institution for conducting entrance examination

[CA Bimal Jain]

The AAR, Uttar Pradesh in the matter of IN RE: M/S. MEL TRAINING AND ASSESSMENT LIMITED [2022 (7) TMI 602 - AUTHORITY FOR ADVANCE RULING, UTTAR PRADESH] has held that no Goods and Services Tax (“GST”) shall be levied on services provided to educational institution for conducting entrance examination.

Facts:

M/s MEL Training and Assessment Ltd. (“the Applicant”) has engaged in the business of providing exams, certification, and other services including various types of surveys, assessments, and exam services to various clients. The Applicant has entered into contract with All India Institute of Medical Sciences (“the AIIMS”) for providing services relating to:

• recruitment examination for recruiting various person within the organization.
• Conducting entrance examination for granting admission to students.
• Semester Examination /Course Examination.

The Applicant contended that services relating to recruitment and semester examination are liable for the payment of GST and the services relating to entrance examination are exempt from payment of GST as per Entry 66(b) (iv) of Notification No. 12/2017 dated June 28, 2017 [“Services rendered by the educational institution”]

Issue:

• Whether the services provided by the Applicant can be exempted under Entry 66(b) (iv) of the Services Exemption Notification.?

Held:

The AAR, Uttar Pradesh in IN RE: M/S. MEL TRAINING AND ASSESSMENT LIMITED [2022 (7) TMI 602 - AUTHORITY FOR ADVANCE RULING, UTTAR PRADESH] has held as under:

• AIIMS qualifies within the definition of educational institution and accordingly services provided by the Applicant to AIIMS by way of conducting examination is exempt under the Services Exemption Notification.
• Observed that, the recruitment and semester examination are not mentioned in the Entry 66(b) (iv) of Notification No. 12/2017 dated June 28, 2017, and hence they are not exempted and liable for the payment of GST.
• Held that, the service provided to an educational institution by way of conduct of examination is exempted as per entry 66(b)(iv) of the Service Exemption Notification.

(Author can be reached at [email protected])