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EXEMPTION OF GST ON SERVICES BY NBE, CENTRAL AND STATE BOARD

On 17.06.2021, vide CIRCULAR NO. 151/07/2021-GST [CBIC-190354/36/2021-TRU SECTION-CBEC], the council released its clarification regarding the application of GST on the fee for the entrance examination and various services supplied by the National Board of Examination (“NBE”), Central Board and the State Boards. Services, namely, entrance exams for admission into the university, input services for conducting entrance exams and accreditation of the institutions. However, the issue was scrutinised in43rd GST Council Meeting.

Further, it is also clarified that NBE could be considered an ‘educational institution’ similar to the central and state board for its limited purposes as per explanation 3 (iv) provided in Notification no. 12/2017 CTR. As already stated in the said notification that: (a) services provided by the educational institution to its staff and students and (b) services by way of conduction entrance exam against entrance fee, are exempted from GST.

Therefore, in the view of the aforesaid, the GST Council has recommended the following:-

(a) No GS shall be taken on any fee charged by the NBE, Central and State board educational institution for entrance examinations.

(b) Exemption of GST on input services concerning admission to or conduct of examination, such as online testing service, result publication, printing notification for examination, admit card and questions papers, etc.

(c) 18 % GST on services such as accreditation to an institution or to a professional as accreditation fee or registration fee such as fee for FMGE screening test

Reference: https://www.cbic.gov.in/resources/htdocs-cbec/gst/Circular_Refund_151.pdf

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