Clarification regarding GST on supply of various services by Central and State Board and such as National Board of Examination- Circular No. 151/07/2021-GST Dated 17.06.2021
Clarification regarding GST on supply of various Education services :-Certain representations have been received seeking clarification in regarding of taxability of various services supplied by State Boards and Centre Boards and such as National Board of Examination (NBE). These services (Charging and Fees) include entrance examination for admission to educational institution, input services for conducting such entrance examination for State Boards and Centre Boards and such as National Board of Examination (NBE) students, accreditation of educational institutions or professional so as to authorise them to provide their respective services. The issue was examined in 43rd GST Council meeting held on 28th May, 2021.
Illustratively: – NBE provides services of conducting entrance examinations for admission to courses including Diplomat National Board and Fellow of National Board prescribes courses and curricula for (PG) Post Graduate medical studies, holds examinations and grant Diplomas, degrees, and other academic distinctions. It carries out all functions as are normally carried out by Sate and Central educational boards and is thus a central educational board.
According to explanation 3(iv) of the Noti. No. 12/2017-Central Tax Rate, “Central and State Educational Boards” are treated as Educational Institution for the limited purpose of providing services (and Charging and Fees) by way of conduct of examination to the students.
Therefore, National Board of Examination NBE is an ‘Educational Institution’ in so far as it provides services by way of conduct of examination, including entrance examination, to the students.
Following services supplied by an educational institution are exempt from GST vide S. No. 66 of the notificat No.12/2017-Central Tax Rate (CTR) dated 28.06.2017,
Services provided –
- an educational institution to its students and faculty with staff.
- an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee and other.
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- Central-dated-28.06.2017 Tax Rate (CTR)].
Educational institutions Mean are defined at 2(y) of the said notification no-12/2017-CT(R ) as follows-
“(y) educational institution” means
an institution providing services by way of, –
- pre-school education and Up to higher secondary education school or equivalent.
- education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.
- education as a part of an approved any vocational education course.
Further, clause (iv) of Explanation of said notification no-12/2017-CT(R) reads as below:
“(iv) For removal of doubts, it is clarified that the Sate and Central Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of students examination”
Taking into account the above, the GST Council has recommended in Meeting, to clarify as below:
(i) GST is exempt on services provided by Central or State Boards (including the boards such as National Board of Education (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 notif No. 12/2017- Central Tax Rate-dated 28.06.2017 (CTR)]. 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 and other notify in Circular No:-151/07/2021-GST/ Dated-17.06.2021 of notification for examination, admit card and questions papers etc, when provided to such Boards [under S. No. 66 (b) (iv) of notif No. 12/2017- Central Tax Rate (CTR)- Dated 28.06.2017].
(iii) GST at the rate of 18% applies to other services provided by Central or State Boards including the boards such as National Board of Education, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test by NBE) so as to authorise them to provide their respective services
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