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July 19, 2022

GST is exempt on services to AIIMS by way of entrance examination

by CA Shivam Jaiswal in GST

GST is exempt on services to AIIMS by way of entrance examination

Facts and Issues of the case

M/s MEL Training and Assessment Limited , 03/294, Ground Floor, Vastu Khand-3, Gomti Nagar, Lucknow- 2260] 0 (here in after referred to as the applicant) is a registered assessee under GST having GSTN: 09AAFCA8287M2ZW.

  1. The applicant has submitted as under-
  2. the applicant is engaged in the business of providing exam, certification and other allied services including various types of surveys, assessments and exam services to various clients including individuals, educational institutions, firms, corporate bodies, government undertakings etc.
  3. the applicant have entered into various contracts with customers to provide services which are conducting online examinations.
  4. the present application is with respect to applicability of UST for services of examination conducted for ALL INDIA INSTITUTE OF MEDICAL SCEINECES (AIIMS)
  5. The broad nature of services provide to AIIMS are as under-
    1. Recruitment Examination for recruiting various persons within the organization.
    2. Entrance Examination for granting admissions to students in. different courses in AIIMS.
    3. Semester Examination/Course Examination
    4.  they charge fee based on the number of candidates appearing for each examination.
  6.  The applicant believes that the services provided by them in respect to sl. No. (iv) (a) and (iv)(c ) are liable for payment of GST and the services provided by them with respect to sl. No. (iv)(b) is exempt from payment of GST as per entry 66((b)(iv) of Notification No. 12/2017-Central Tax (Rate) as amended.

Observations by the Court

The Court has gone through the submissions made by the applicant and have examined the same. We observe that the applicant has sought advance ruling on the following questions- Whether the services provided by the applicant can be considered as exempted under Entry 66 of Notification 12/2017-Central Tax (Rate).

The Court finds that the applicant is providing services in respect of (i) Recruitment Examination (ii) Entrance Examination and (iii) Semester/course Examination to the AIIMS. The services provided to an educational institution by way of services relating to admission to or conduct of examination by, such institution is exempted as per entry 66(b)(iv) of the said notification. As regards the services by way of Recruitment Examination (for recruitment of employee) and Semester/Course examination is not mentioned in the said notification, the same are not exempted.

However, as services provided to an educational institution by way of services relating to admission to or conduct of examination by, such institution is exempt as per entry 66(b)(iv) of the said notification, it is necessary to examine as to whether AIIMS is covered in definition of an educational institution.

As such, the court is  of the view that the AIIMS qualifies the definition of educational institution and accordingly services provided by the applicant to AIMS by way of services relating to admission i.e. by way of entrance examination is exempt under entry no. 66(b)(iv) of the Notification No. 1 2/2017-ST

Conclusion

Question- Whether the services provided by the applicant can be considered as exempted under Entry 66 of Notification 12/2017-Central Tax (Rate).

AnswerServices provided by the applicant to AIIMS by way of Recruitment examination and Semester/Course examination are not exempted under Entry 66 of Notification 12/2017-Central Tax (Rate). However, services provided by the applicant to AI1MS by way of Entrance examination are exempted under Entry 66 of Notification 12/2017-Central Tax (Rate).

In-re-MEL-Training-and-Assessment-Limited-GST-AAR-Uttar-Pradesh

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