The West Bengal Authority for Advance Ruling (AAR) has ruled that Central and State Educational Boards are to be considered “Educational Institutions” for the limited purpose of providing services related to the conduct of examinations to students. This ruling implies that services such as printing question papers for educational institutions will be exempt from the Goods and Services Tax (GST).
The ruling came in response to an application filed by Saraswaty Press Limited, an entity engaged in the business of printing, including question papers for educational institutions.
The applicant has been providing services for printing question papers for different universities, primarily Government-based institutions. The question papers printed by the applicant company are used for conducting examinations, including entrance exams and they are characterised by the need for confidentiality, accuracy and timely delivery.
The applicant sought clarity on whether the service of printing question papers for the conduct of examinations to educational institutions should be covered by the GST exemption under Notification No. 12/2017-Central Tax (Rate) and Notification No. 12/2017-State Tax (Rate) and thus treated as an exempt supply.
The applicant also wants clarity on whether the GST previously charged on invoices to educational institutions for printing question papers should be refunded and whether they are eligible to claim a refund of the GST collected on such invoices and deposit it with the exchequer, following the principle of unjust enrichment under Sections 54(5) and 54(8) of the GST Act, 2017.
The AAR, after careful consideration, admitted the application only in respect of the first question.
The authority ruled that the service of printing question papers for the conduct of examinations to educational institutions shall be covered by Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) and therefore should be treated as an exempt supply. This implies that GST will not be applicable to such services.
The AAR clarified that educational institutions when providing services related to the conduct of examinations, will enjoy an exemption from GST. This will likely result in cost savings for these institutions and could potentially have a positive impact on the education sector.
The ruling also clarified the status of Central and State Educational Boards, treating them as educational institutions for the limited purpose of providing services related to the conduct of examinations.
The two-member authority comprising Dr Tanisha Dutta (CGST Member) and Joyjit Banik (SGST Member) concluded that the services of printing question papers for conduct of examinations to educational institutions, supplied by the applicant will be covered by Sl. No 66 of the Notification No. 12/2017-Central tax (Rate) as amended, and therefore shall be treated as exempt supply. The applicant is not required to charge GST for such services provided to educational institutions.
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