Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination) - GST - States - 04/2021-GST

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE TAXES (POLICY BRANCH) VYAPAR BHAWAN, I.P ESTATE, NEW DELHI -110002 No. F.3 (380)/Policy-GST/2021/642-48 Dated : 30/07/2021 CIRCULAR NO. 04/2021-GST (Ref. Circular No. 151/07/2021-GST of Central Tax) Sub Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination) reg. Certain representations have been received seeking clarification 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 authorise them to provide their respective services. The issue was examined by GST Council in its 43rd meeting held on 28 th 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 notification No. 12/ 2017 STR, Central and State Educational Boards 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 notification No. 12/ 2017- State Tax (Rate) dated 30.06.2017, 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)-12/2017-CT(r)]. 3.3 Educational institutions are defined at 2(y) of the said notification as follows- (y) educational institution means an institution providing services by way of, - (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) education as a part of an approved vocational education course; ; Further, clause (iv) of Explanation of said notification reads as below: (iv) For removal of doubts, it is clarified 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 notification 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 notification for examination, admit card and questions papers etc, when provided to such Boards [ under S. No. 66 (b) (iv) of notification 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 authorise them to provide their respective services 5. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of Commissioner, State Tax. (ANKUR GARG) COMMISSIONER STATE TAX