2020 (9) TMI 783 - AAR - GST

Levy of GST - Services are in relation to conduction of examination - Bihar School Education Board, educational institution - Whether the services performed by them are exempted by virtue of item (b) of Sr. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017? - HELD THAT - The Notification No. 14/2018-CentaI Tax (Rate) dated 26.07.2018 inserted a clarification in Notification No. 12/2017 -Central Tax (Rate) dated 28.06.2017 that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students. Thus the BSEB becomes an Educational Institution for the purpose of conduction of examination, in terms of the Notification. It is observed, from the letter dated 06.12.2018 of BSEB, submitted by the applicant containing reference of work order dated 10.11.2018, that the applicant was given the job to scan the OMR Flying slip, OMR marks Foil with barcode sticker, scanning of OMR attendance sheet and scanning OMR Absentee sheet along with data extraction and finalization of data in all the four categories . Whether the aforesaid work, allotted to the applicant by the BSEB, covered under the conduction of examination or not? - HELD THAT - It is an undisputed fact that the process of conducting examination is not limited/ restricted to a test centre. Examination is an incomplete activity without assessment. Scanning of answer sheets and quantifying marks is an essential part albeit main objective of the examination process. Educational institutions or the examinees do not look at these activities in isolation. The stated activity of the applicant is exempted by virtue of Sr. No.66 of Notification No. 12/2017-CT (R) dated 28.06.2017.

Summary

Issues:
1. Interpretation of exemption under item (b) of Sr. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017 for services provided by the applicant.
2. Admissibility of the application under Section 97(2)(e) of the CGST Act 2017.

Analysis:
1. The applicant, a service provider in print solutions and IT services, sought an Advance Ruling on whether their services are exempted under item (b) of Sr. No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017. The applicant argued that services provided to the Bihar School Educational Board for scanning OMR sheets and data finalization fall under the exemption for services related to the conduct of examinations by educational institutions. They referenced a similar ruling by the Advance Ruling Authority of Maharashtra to support their claim.

2. The Authority considered the applicant's submission and the relevant provisions of the CGST and KGST Acts. They noted that the impugned services were for scanning OMR sheets and data finalization for the Bihar School Educational Board, which is considered an educational institution for examination purposes. The Authority referred to Notification No. 14/2018-Central Tax (Rate) to establish that educational boards are treated as educational institutions for conducting examinations. The work assigned to the applicant was integral to the examination process, and therefore, exempted under Sr. No. 66 of the Notification.

3. The Authority concluded that the applicant's services fell under "Other Educational Support Services" under SAC 999299 and were related to the conduct of examinations. As a result, the services were deemed exempted under Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The ruling favored the applicant, providing clarity on the exemption status of their services related to examination processes for educational institutions.