Applicability of GST exemption under Entry 66(a) to clinical postings provided by a specialised hospital/educational institution to students of another educational institution

[Mith Moh]

ABC is a specialised oncology hospital and educational institution for certain recognised courses and is affiliated/recognised by university and bodies such as NBEMS and NMC.

Students enrolled in recognised PG/medical programmes are required, as part of their prescribed curriculum, to undergo a mandatory clinical posting of in an oncology centre. The respective colleges/universities send their students to ABC.

ABC provides the required clinical exposure, access to its oncology facilities and related training. The consideration for the posting may be paid either by the concerned college/institution or by the student.

Question: Whether the fees collected by the Applicant for such mandatory clinical postings are exempt under Sl. No. 66(a) of Notification No. 12/2017-Central Tax (Rate) as "services provided by an educational institution to its students, faculty and staff", considering that:

1. the clinical posting is a mandatory component of a curriculum leading to a qualification recognised by law under paragraph 2(y)(ii) of the Notification;
2. the Applicant is itself an educational institution/recognised oncology institution for certain courses, but the students undertaking the posting are primarily enrolled with another University/college; and
3. the Applicant is providing only the specific clinical component required under the students' recognised curriculum, rather than conducting the entire degree/PG programme.

Does the expression "to its students" in Sl. No. 66(a) require the students to be formally enrolled with the Applicant, or can students placed with the Applicant for a mandatory component of their recognised curriculum be regarded as receiving educational services from the Applicant for purposes of the exemption?

Please refer ADVANCE RULING No. KER/17/2025 Dated 01.07.2025 which held that 102 government approved courses being part of Four Year Undergraduate Program is covered under Sl. No. 66(a) of Notification No. 12/2017-Central Tax (Rate)

AI Summary

GST exemption for mandatory clinical postings depends on recognised curriculum status and a formal educational relationship with trainees.
GST exemption under Entry 66(a) for mandatory clinical postings may apply where the posting is part of a curriculum leading to a qualification recognised by law and the training institution is approved for that component. The further requirement that services be provided "to its students" is significant. Exemption is more defensible if students are formally posted, attached or registered with the institution and receive structured training, supervision, attendance monitoring or assessment. Mere clinical exposure for students of another institution without a formal academic or regulatory relationship creates a litigation-prone position.