Clarifcation regarding GST on supply of various services by Central and State Board (such as National Board of Examination) - GST - States - CIRCULAR No. 06/2021(STATE)

File No.REV03-12039(31)/52/2021-AC-GST-CCT Government of Andhra Pradesh Commercial Taxes Department Proceedings of the Chief Commissioner of State Tax, Andhra Pradesh CIRCULAR No. 06/2021(STATE) IN REFERENCE TO 151/07/2021(CENTRAL), 02/07/2021 Sub:-Clarifcation regarding GST on supply of various services by Central and State Board (such as National Board of Examination) reg. Ref:- From the GOI, MOF, DOR, CBIC, Circular No.151/07/2021-GST, dated 17-06-2021. Certain representations have been received seeking clarifcation in respect of taxability of various services supplied by Centre and State Boards such as National Board of Examination (NBE). These services include entrance examination (on charging a fee) for admission to educational institution, input services for conducting such entrance examination for students, accreditation of educational institutions or professional so as to authorize them to provide their respective services. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021. 2. Illustratively, NBE provides services of conducting entrance examinations for admission to courses including Diplomat National Board (DNB) and Fellow of National Board (FNB), prescribes courses and curricula for PG medical studies, holds examinations and grant degrees, diplomas and other academic distinctions. It carries out all functions as are normally carried out by central or state educational boards and is thus a central educational board. 3. According to explanation 3(iv) of the notifcation issued in the G.O.Ms.No.588, Revenue (Commercial Taxes-II) Department, dated 12-12-2017 (Notifcation No. 12/ 2017 CTR), Central and State Educational Boardsn are treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students.Therefore, NBE is an Educational Institution in so far as it provides services by way of conduct of examination, including any entrance examination, to the students. 3.1 Following services supplied by an educational institution are exempt from GST vide sl. No. 66 of the notifcation issued in the G.O.Ms.No.588, Revenue (Commercial Taxes-II) Department, dated 12-12-2017 (Notifcation No.12/2017-CentralTax (Rate) dated 28.06.2017), Services provided- (a) By an educational institution to its students, faculty and staff (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; 3.2 Similarly, services provided to an educational institution, relating to admission to, or conduct of examination is also exempt from GST [sl. No. 66 (b) (iv)-of the Notifcation issued in the G.O.Ms.No.588, Revenue (Commercial Taxes-II) Department, dated 12-12-2017 (12/2017-CT(r)]. 3.3 Educational institutions are defned at 2(y) of the said notifcation as follows- (y) educational institution means an institution providing services by way of,- i. pre-school education and education upto higher secondary school or equivalent; ii. education as a part of a curriculum for obtaining a qualifcation recognized by any law for the time being inforce; iii.education as a part of an approved vocational education course; ; Further, clause (iv) of Explanation of said notifcation reads as below: (iv) For removal of doubts, it is clarifed 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 4. Taking into account the above, the GST Council has recommended, to clarify as below: i. GST is exempt on services provided by Central or State Boards ( including the boards such as NBE)by way of conduct of examination for the students, including conduct of entrance examination for admission to educational institution [under S. No. 66 (aa) of the notifcation issued in the G.O.Ms.No.588, Revenue (CT-II) Department, dated 12-12-2017(notif No. 12/2017-CT(R)] . Therefore, GST shall not apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations. ii.GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notifcation for examination, admit card and questions papers etc, when provided to such Boards [ under S. No. 66 (b) (iv) of the notification issued in the G.O.Ms.No.588, Revenue (CT-II) Department, dated 12-12-2017(notif No. 12/2017-CT(R)]. iii.GST at the rate of 18% applies to other services provided by such Boards,namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test ) so as to authorize them to provide their respective services 5. Difficulty if any, in the implementation of this circular may be brought to the notice of the Chief Commissioner. Peeyush Kumar Commissioner