No GST on Scanning and Processing of Examination Results for Educational Institutions: AAR [Read Order]
The Applicant is a Chennai-based service provider engaged in the field of high-security educational printing, primarily for institutions within the field of education
Scanning and Processing
Scanning and Processing
The Tamil Nadu Authority for Advance Ruling (AAR) recently held that services such as scanning and processing of examination results for educational institutions shall be exempt from the levy of Goods and Services Tax (GST).
M/s Mehra Computer Systems Limited (Mehra Computer Systems), a Chennai-based company specialising in high-security printing and result-processing solutions, filed an application for Advance Ruling before the Authority seeking clarity on whether their services of scanning Optical Mark Recognition (OMR) sheets and processing data for generating examination results qualify for exemption under the GST regime.
The applicant sought ruling on whether such activities involved in the processing of examination results would fall under the exemption granted through Serial No. 66 of Notification No. 12/2017-CT (Rate) dated 28.06.2017, as amended by Notification No. 02/2018-CT (Rate) dated 25.01.2018.
During the personal hearing held on 03.01.2025, GST Practitioner Kalyanasundaram Baskaran appeared as the authorised representative for Mehra Computer Systems and reiterated the factual matrix presented in the application. It was submitted that the applicant undertakes the secure scanning of OMR sheets and subsequent processing of examination data to generate student-specific results, which are then used for publication and issuance of certificates.
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The Bench comprising Balakrishna S (CGST Member) and B. Suseel Kumar (SGST Member) noted that the nature of the service involved specialized processing using inputs and raw data provided by educational boards. Relying on Circular No. 151/07/2021-GST dated 17.06.2021, the Authority highlighted that services related to conducting examinations, such as online testing, result publication and scanning of responses are exempt under GST when provided to recognised educational institutions.
The Authority further noted that the services rendered form an inseparable part of the overall examination system and that the exemption under Serial No. 66 of Notification No. 12/2017-CT (Rate) is intended to cover all such allied activities carried out for educational institutions.
The Authority emphasized that such services, being directly linked to the conduct and outcome of examinations, cannot be separated from the examination process itself.
Accordingly, the AAR ruled that the scanning and processing of examination results, when undertaken for educational institutions recognised, shall be treated as exempt from GST.
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