The West Bengal Authority for Advance Ruling (AAR) has held that the services provided by educational institutions to universities in respect of the conduct of examination, including both Pre and Post-examination services, are exempted from Goods and Services Tax (GST).
This decision highlights the tax benefits available to the educational institutions involved in the conduct of examinations.
The ruling came in response to an application filed by the Institute of Education and Examination Management Pvt. Ltd., a company providing various services related to examinations to universities in West Bengal.
The applicant, represented by Mr. Arup Dasgupta, sought clarification on the applicability of GST on services such as online and offline printing of pre-examination items, designing and managing web-based examination applications and post-examination services like scanning and processing of examination results.
The authority considered the definition of “educational institution” as provided in Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. According to this definition, an educational institution includes institutions providing education up to higher secondary school or equivalent, education as part of a curriculum leading to a recognised qualification and education as part of approved vocational education courses.
The AAR clarified that both Central and State Educational Boards are considered educational institutions for the limited purpose of providing services related to the conduct of examinations to students.
The ruling emphasised the broad scope of education, which includes not only teaching and learning but also the conduct of examinations and the awarding of certificates or degrees by educational boards and universities.
The authority highlighted that universities, by formulating courses, prescribing syllabi, creating academic schedules, conducting examinations, evaluating students and awarding degrees, are actively involved in the educational process. They play a pivotal role in education and services related to the conduct of examinations are an integral part of their functions.
In conclusion, the two-member bench of the authority comprising Tanisha Dutta (CGST Member) and Joyjit Banik (SGST Member) clarified that the services provided by educational institutions to universities for conducting examinations, whether Pre or Post-examination, are covered 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.
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