GST Exemption Granted for Educational Assessment Exams as Auxiliary Services to Schools.

The AAR ruled that the educational assessment examination (ASSET) provided by the applicant to schools qualifies for GST exemption under Sr. No. 66(b)(iv) of Not. No. 12/2017-CT (Rate) and entry No. 69(b)(iv) of Not. No. 9/2017-Integrated Tax (Rate). The services are deemed auxiliary to the conduct of examinations by educational institutions, fulfilling the exemption criteria.

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Issues Involved:
1. Whether the educational assessment examination (ASSET) provided by the applicant to schools/educational organizations is exempt from payment of GST under Sr. No. 66(b)(iv) of Not. No. 12/2017-CT (Rate) dated 28.06.2017 and entry No. 69(b)(iv) of Not. No. 9/2017-Integrated Tax (Rate) dated 28.06.2017.

Detailed Analysis:

1. Nature of ASSET Services:
- The applicant, M/s. Education Initiatives Pvt. Ltd., provides ASSET (Assessment of Scholastic Skills Through Educational Testing) to schools for diagnostic assessment of students.
- ASSET is a skill-based assessment exam using multiple-choice questions to measure students' understanding of skills and concepts.
- The exam generates reports indicating students' progress and areas needing improvement.
- ASSET is conducted without any pre/post teaching business relation with the school and is part of the school's evaluation system.

2. Applicant's Interpretation of Law:
- The applicant claims that the services provided fall under the exemption specified in Sr. No. 66 of Not. No. 12/2017-CT (Rate) dated 28.06.2017, which exempts services relating to the conduct of examination by educational institutions.
- They argue that their services are auxiliary to the educational institutions' examination processes and thus qualify for exemption.

3. Definition and Scope of 'Educational Institution':
- As per Notification No. 12/2017-Central Tax (Rate), 'educational institution' includes institutions providing education up to higher secondary school or equivalent.
- The applicant's services are provided to schools that fall under this definition.

4. Examination of Conditions for Exemption:
- The recipient of the services must be an 'educational institution' as defined.
- The services must relate to the conduct of examinations by such institutions.

5. Analysis of ASSET Services:
- ASSET services involve providing multiple-choice question papers (both physical and online) to schools, evaluating answers, and generating reports.
- Schools use ASSET results as part of their examination and evaluation system, fulfilling the condition of services relating to the conduct of examinations.

6. Judicial Precedents and Interpretations:
- The term 'in relation to' has been interpreted broadly by the Supreme Court in various cases, suggesting a wide scope for services that assist educational institutions in conducting examinations.
- Previous rulings by the Authority for Advance Rulings (AAR) in similar cases have held that services like printing question papers for educational institutions are exempt from GST.

7. Conclusion:
- The applicant’s services of providing ASSET examination tools to schools qualify for exemption under Sr. No. 66(b)(iv) of Not. No. 12/2017-CT (Rate) dated 28.06.2017.
- The services are considered auxiliary to the conduct of examinations by educational institutions, meeting the criteria for GST exemption.

Ruling:
Whether the educational assessment examination (ASSET) with its variants provided by the applicant to school/educational organization is exempted from payment of GST under Sr. No. 66(b)(iv) of Not. No. 12/2017-CT (Rate) dated 28.06.2017 and entry No. 69(b)(iv) of Not. No. 9/2017-Integrated Tax (Rate) dated 28.06.2017 as well as equivalent SGST NotificationRs.

Answer: Yes, exemption is available in respect of ASSET services provided to educational institutions.

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