AIIMS entrance examination services qualify for GST exemption under Entry 66(b)(iv) but recruitment and semester exams don't

The AAR, UP ruled on GST exemption for examination services provided to AIIMS. The Authority held that entrance examination services qualify for exemption under Entry 66(b)(iv) of Notification 12/2017-Central Tax (Rate) as they relate to admission to an educational institution. However, recruitment examination services for employee hiring and semester/course examination services do not fall under this exemption as they are not specifically covered in the notification. AIIMS was recognized as qualifying as an educational institution under the relevant provisions, being established as an institution of national importance conducting undergraduate and postgraduate medical education programs.

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Issues:
Applicability of GST exemption under Entry 66 of Notification 12/2017-Central Tax (Rate) for services provided to an educational institution.

Analysis:
1. The applicant sought an advance ruling on whether the services provided could be considered exempt under Entry 66 of Notification 12/2017-Central Tax (Rate).
2. The applicant provides exam, certification, and allied services, including online examinations, to clients such as educational institutions like AIIMS.
3. The applicant charged fees based on the number of candidates appearing for each examination.
4. The applicant believed that services related to Recruitment Examination and Semester Examination are subject to GST, while services related to Entrance Examination for AIIMS are exempt.
5. The definition of an educational institution under Entry 66 of the notification includes services related to admission or conduct of examination by such institutions.
6. The AIIMS, being an institution of national importance, qualifies as an educational institution under the definition provided.
7. The AIIMS conducts teaching programs in medical and para-medical courses at undergraduate and postgraduate levels, meeting the criteria of an educational institution.
8. The ruling stated that services provided by the applicant for Recruitment Examination and Semester/Course Examination to AIIMS are not exempt under Entry 66. However, services for Entrance Examination are exempt.
9. The ruling is valid within the jurisdiction of the Authority for Advance Ruling Uttar Pradesh, subject to the provisions of the CGST Act, 2017.

This detailed analysis of the judgment highlights the key issues, arguments presented, relevant legal provisions, and the final ruling provided by the Authority for Advance Ruling, Uttar Pradesh.

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