AAR: GST Exemption for Pre & Post Examination Services Given to Universities by Educational Institutions

The services furnished via the educational institutions to the universities for the exam conduct along with both Pre and Post-examination services, are exempted from Goods and Services Tax (GST), the West Bengal Authority for Advance Ruling (AAR) ruled.

This ruling underscores the tax advantages that educational institutions can enjoy when they engage in exam-related activities.

The ruling was prompted by a request submitted by the Institute of Education and Examination Management Pvt. Ltd., a firm that offers a range of examination-related services to universities in West Bengal.

Mr. Arup Dasgupta, representing the applicant, sought clarification regarding whether GST applied to services such as the printing of pre-examination materials, the creation and management of web-based exam applications, and post-exam services like the scanning and processing of exam results.

The authority examined the definition of “educational institution” outlined in Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. As per this definition, educational institutions encompass establishments offering education up to the higher secondary level or its equivalent, education forming part of a curriculum directing to a recognized qualification, and education included in approved vocational education programs.

The AAR clarified that both Central and State Educational Boards are considered educational institutions solely for the specific purpose of providing services related to the administration of exams to students.

The ruling highlighted the comprehensive nature of education, encompassing not only teaching and learning but also the administration of examinations and the granting of certificates or degrees through educational boards and universities.

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The authority highlighted that universities, through course formulation, syllabus design, academic scheduling, exam administration, student evaluation, and degree conferment, actively contribute to the educational process. They play a key role in education, and services linked to exam administration are an integral aspect of their responsibilities.

The services furnished via educational institutions to universities for conducting examinations, whether Pre or Post-examination, are counted under the exemption category mentioned in Notification No. 12/2017 which covers services related to the admission to, or conduct of examination by, educational institutions and thus, are exempt from GST, the two-member bench of the authority comprising Tanisha Dutta (CGST Member) and Joyjit Banik (SGST Member) clarified.