2022 (7) TMI 602 - AAR - GST

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

In Re: M/s. MEL Training And Assessment Limited.

The AAR, UP ruled on GST exemption for examination services provided to AIIMS. The Authority held that entrance examination services qualify for exemption ... Exemption from GST - services of examination conducted for ALL INDIA INSTITUTE OF MEDICAL SCEINECES (AIIMS) - eligibility of exemption under Entry 66 of Notification 12/2017-Central Tax (Rate) - HELD THAT:- There is no restriction of ‘upto higher secondary level’ in respect of exemption covered in entry 66(b)(iv) of the Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017. The applicant is providing services in respect of (i) Recruitment Examination (ii) Entrance Examination and (iii) Semester/course Examination to the AIIMS. The services provided to an educational institution by way of services relating to admission to, or conduct of examination by, such institution is exempted as per entry 66(b)(iv) of the said notification. As regards the services by way of Recruitment Examination (for recruitment of employee) and Semester/Course examination is not mentioned in the said notification, the same are not exempted. It is found that the All India Institute of Medical Sciences (AIIMS) was established in 1956 by an Act of Parliament. As per Section 5 of the All India Institute of Medical Sciences Act, 1956, the AIIMS has been declared as an institution of national importance. As per Section 13 of the AIIMS Act, 1956, the objective of the AIIMS is to develop patterns of teaching in undergraduate and postgraduate medical education in all its branches so as to demonstrate a high standard of medical education to all medical colleges and other allied institutions in India; to bring together in one place educational facilities of the highest order for the training of personnel in all important branches of health activity and to attain self-sufficiency in postgraduate medical education. AIIMS conducts teaching programs in medical and para-medical courses both at the undergraduate and postgraduate levels and awards its own degrees. Thus, the AIIMS qualifies the definition of educational institution and accordingly services provided by the applicant to AIIMS by way of services relating to admission i.e. by way of entrance examination is exempt under entry no. 66(b)(iv) of the Notification No. 12/2017-ST dated 28.06.2012. 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.