No GST on the service provided to the educational institution to conduct the entrance examination: AAR

The Uttar Pradesh Authority for Advance Rulings (AAR) ruled that no Goods and Services Tax (GST) was applied to the services provided to the educational institution to arrange entrance examinations .

The applicant, M/s MEL Training and Assessment Ltd. is engaged in providing examinations, certifications and other related services, including various types of surveys, assessments and examination services to various clients including individuals, educational institutions, businesses , business organizations, government companies, etc., the Applicant has entered into various contracts with clients to provide services that conduct an online review.

The applicant has approached the AAR to inquire about the applicability of the Goods and Services Tax (GST) to examination services performed for AIIMS, and whether such a service provided by the applicant can be considered as exempt under Entry Notification 66 12/2017.

The Authority observed that the services relating to the recruitment examination, the entrance examination and the semester/course examination at AIIMS. The service provided to an educational institution by way of a service relating to admission or the conduct of examinations by that institution is exempt pursuant to entry 66(b)(iv) of Notification 12/ 2017. The Authority further observed that the recruitment examination (for the recruitment of employees) and the semester/course examination are not mentioned in the said notification, nor are these exempted.

The Coram of Mr. Abhishek Chauhan (Central Tax) and Mr. Vivek Arya (State Tax) ruled that “services provided by the candidate to AIIMS through the Recruitment Examination and the Semester/Course Examination are not exempt under Entry 66 of Notification 12/2017. However, services provided by the candidate to AIIMS in connection with an entrance examination are exempted under entry 66 of the notification of 12/2017”.

Mr. Saroj Parida and Mr. Keval Shah, CA appeared on behalf of the Applicant.

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IN Subject: M/s MEL Training and Assessment Ltd.

CITATION: 2022 TAXSCAN (AAR) 215

Janice G. Ball