2021 (10) TMI 324 - AAR - GST

GST exemption granted for applicant's educational services including pre-exam assistance & result processing

The Authority ruled that services provided by the applicant, including pre-examination, technical assistance for online examinations, and post-examination ... Classification of supply of services - educational institutions or not - Online and offline printing of Pre-Examination items such as Registration Certificate, Examination Enrollment Forms, Admit Cards, Award List for marks entry and other Pre examination related services to Educational Boards, Council and Universities - Designing, Developing and managing Web based applications and related services for conducting online Examination of Educational Boards, Council and Universities - Post examination services of Scanning and Processing of Examination Results, generation and printing of Mark Sheets (Online and offline), Printing of Pass certificates and other related Examination activities for Educational Boards, Council and Universities - whether the councils namely The West Bengal Council of Rabindra Open Schooling and West Bengal State Council of Technical and Vocational Education and Skill Development can also be termed as educational institution? HELD THAT:- West Bengal State Council of Technical & Vocational Education and Skill Development, a statutory body, offers courses under various sections like Engineering and Technology, Agriculture, Business and Commerce etc. and also conducts examinations for admission to different vocational education courses and therefore the function of the council is similar to other education boards. Whether the activities undertaken by the applicant against work orders issued to him shall be treated as services relating to conduct of examination or not? - HELD THAT:- The process of conducting examination includes pre-examination works, the examination itself and post-examination works. It has already been stated that the applicant has undertaken activities like pre and post examination data processing job relating to B.A./B.Sc. Examination, data processing job for online submission of PPR/FSI Forms relating to B.A./B.Sc. Examinees, upgradation of existing software towards development of pre & post examination system through automation of existing registration process of UG &B PG Courses etc. The said activities, as we opine, can be treated as services relating to conduct of examination. The supply of services details of which are submitted by the applicant in course of hearing shall get covered under entry serial number 66 of the Notification No. 12/2017 - Central Tax (Rate), dated 28th June, 2017 as amended and shall therefore be exempted from payment of tax under the GST Act. Issues Involved:1. Whether the supply of services related to pre-examination, technical assistance for online examinations, and post-examination activities to educational institutions are exempted under Entry No. 66 of Notification 12/2017-Central Tax (Rate) as amended.Issue-wise Detailed Analysis:1. Pre-Examination Services:The applicant provides services related to the design and development of online registration forms, examination forms, admit cards, award lists, and attendance registers. Additionally, these services include the generation and printing of these forms using security check stationery. Numerous reports and validation exercises are also undertaken to ensure error-free services for conducting examinations. The applicant argues that these services should be exempt under Entry No. 66 of Notification 12/2017-Central Tax (Rate).2. Technical Assistance for Online Examinations:The applicant provides technical assistance for conducting online examinations, where question papers are uploaded to a cloud server, and candidates upload their answers within a stipulated time. These answer sheets are then evaluated online, and marks are submitted through a Marks Entry Portal. The applicant contends that these services are integral to the conduct of examinations and should be exempt under the same notification.3. Post-Examination Services:Post-examination services include activities such as the allocation of answer scripts to examiners, online marks entry, marks verification, processing of submitted marks, and the generation and printing of mark sheets and pass certificates. These activities are aimed at delivering error-free results while maintaining the secrecy of the examination process. The applicant believes these services are also covered under Entry No. 66 of the said notification.Observations & Findings:The Authority examined whether the services provided by the applicant to educational institutions qualify for exemption under Entry No. 66 of Notification 12/2017-Central Tax (Rate). The notification defines 'educational institution' and includes services related to the conduct of examinations. The Authority noted that Central and State Educational Boards are treated as educational institutions for the purpose of conducting examinations.The Authority reviewed the work orders submitted by the applicant, which were issued by various universities and educational councils. It was determined that these institutions qualify as 'educational institutions' under the notification. The Authority also referenced previous rulings and circulars, which clarified that services related to the conduct of examinations by educational institutions are exempt from GST.Conclusion:The Authority concluded that the services provided by the applicant, including pre-examination, technical assistance for online examinations, and post-examination activities, are integral to the conduct of examinations by educational institutions. Therefore, these services fall under Entry No. 66 of Notification 12/2017-Central Tax (Rate) and are exempt from GST.Ruling:The supply of services related to:(i) Online and offline printing of pre-examination items such as registration certificates, examination enrollment forms, admit cards, award lists, and other pre-examination related services to educational boards, councils, and universities.(ii) Designing, developing, and managing web-based applications and related services for conducting online examinations of educational boards, councils, and universities.(iii) Post-examination services of scanning and processing of examination results, generation and printing of mark sheets (online and offline), printing of pass certificates, and other related examination activities for educational boards, councils, and universities.are treated as exempted supply under Entry No. 66 of Notification 12/2017-Central Tax (Rate) as amended.