2026 (2) TMI 1097 - AAR - GST

Exemption for examination-related services: services directly connected to conduct of exams are GST-exempt under Notification No.12/2017.

Services supplied to the Board for conduct of examinations (printing answer sheets, question papers, OMR sheets, mark-sheets, online form filling, ... Applicability of exemption under Notification No. 12/2017 to services relating to conduct of examination - Central and State Educational Boards treated as educational institutions for limited purpose of conduct of examination - Maintainability of application for advance ruling by a recipient of services - Advance ruling u/s 95 read with Section 97(2)(b) - applicability of a notification - HELD THAT:- It is noted that earlier, the Authority for Advance Ruling, Rajasthan, vide its Order No. RAJ/AAR/2022-23/09 dated 17.06.2022, had rejected the application on the ground of maintainability under Section 95 of the CGST Act, holding that the applicant was a recipient and not a supplier of services. Entry No. 66(b)(iv) of Notification No. 12/2017-CT (Rate) exempts services “to an educational institution, by way of services relating to admission to, or conduct of examination by, such institution. “Further, Explanation (iv) to paragraph 3 explicitly treats Central and State Educational Boards as educational institutions for the limited purpose of conducting examinations. Thus, RBSE qualifies as an educational institution for the limited purpose of conducting examinations. Consequently, services provided to RBSE which are integral and directly connected with the conduct of examinations are only eligible for exemption under Entry No. 66(b)(iv). Accordingly, all the services mentioned in the application dated 9.2.2022 by the applicant are found to be in relation to the conduct of examination and hence are covered under the exemption available vide Entry No. 66(b)(iv) of Notification No. 12/2017-CT (Rate), as amended. Thus, the applicant is entitled to exemption from GST on the services enumerated in the application, as these are directly connected with the conduct of examinations by the Board of Secondary Education, Rajasthan. Issues: Whether the services supplied by various suppliers to the Board of Secondary Education, Rajasthan in relation to conduct of examinations (printing of answer sheets, question papers, OMR sheets, mark-sheets, online form filling, annual maintenance of examination computers, operator services, result processing, transportation of exam material) are exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 read with Explanation (iv) to paragraph 3 and Circular No. 151/07/2021-GST dated 17.06.2021.Analysis: The Authority examined Section 95 and Section 97(2)(b) of the CGST Act and found the application maintainable following appellate directions; Explanation (iv) to paragraph 3 of Notification No. 12/2017-Central Tax (Rate) treats Central and State Educational Boards as educational institutions for the limited purpose of conduct of examinations. Entry No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate), as amended by Notification No. 2/2018 and clarified by Notification No. 14/2018, exempts services provided to an educational institution by way of services relating to admission to, or conduct of, examination by such institution. Circular No. 151/07/2021-GST provides relevant administrative guidance. On the facts, the services listed are directly connected with and exclusively used for the conduct of examinations by the Board; the Board therefore falls within the limited definition of educational institution for these purposes and the supplied services fall within Entry No. 66(b)(iv) exemption as amended and clarified.Conclusion: The listed services received by the Board of Secondary Education, Rajasthan are exempt from GST under Entry No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 read with Explanation (iv) to paragraph 3 and Circular No. 151/07/2021-GST; ruling in favour of the applicant (assessee).