TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1626
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....The applicant submits that they, were constituted by the Government as a recruitment board for the selection of candidates suitable for various permanent posts in the Devaswom Boards, such as Clerk/Cashier, Confidential Assistant, - Office Attendant, etc. The main activity undertaken by the applicant in the recruitment process is the conduct of examinations for selecting eligible candidates. The applicant also recruits employees on deputation, contract, or coterminous basis. 4.2 The applicant is a grant-in-aid institution, operating through grants received from the State Government. The applicant has applied for an advance ruling to determine whether they are required to obtain registration under the CGST/KSGST Act. The applicant collects fees from candidates applying for examinations for recruitment to permanent posts in the Devaswom Boards. Hence, they have further sought clarity on the applicability of GST on the activity of conducting examinations by collecting examination fees from the candidates. 4.3. The applicant submits that the recruitment process spans various activities, commencing from the publication of notifications to the final selection of candidates, and is ....
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....ards, situated in different geographical areas of the State. The applicant has sought a ruling on the taxability of the activities undertaken for conducting examinations for such posts, wherein application fees are collected from candidates. They have also raised a fundamental question regarding whether registration under the CGST/KSGST Act is required. Accordingly, questions 1 and 3 raised by the applicant fall within the scope of clauses (f) and (g) of sub-section (2) of Section 97 of the CGST Act, namely, "whether the applicant is required to be registered" and "whether any particular activity undertaken by the applicant amounts to or results in a supply of goods or services or both", and hence the application is admitted based on its merits. The second question raised by the applicant, whether GST is to be collected or charged on the application/examination fee collected from candidates also falls squarely within the ambit of Section 97(2) of the CGST Act, 2017. Clause (e) thereof empowers the Authority to determine "the liability to pay tax on any goods or services or both," and clause (f) covers "whether the applicant is required to be registered." The question, being one of ....
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....um to subject experts on the interview board, and preparation and publication of rank lists. Therefore, the services provided by the applicant to candidates, in connection with the recruitment process to permanent posts in the Devaswom Boards, fall within the definition of "business" under the CGST Act and consequently constitute a "supply" as defined in Section 7 of the CGST Act, 2017. 7.5. The issue to be decided is whether GST is applicable to the activities undertaken by the applicant for conducting examinations, by collecting application fees, for permanent posts in the Devaswom Boards. The applicant provides independent recruitment services to candidates for selection to these posts. As a preliminary matter, it must be examined whether the applicant qualifies as a "governmental authority" as defined in Para 2(zf) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, and thereby becomes eligible for the GST exemption provided in the relevant entries of the said Notification. The term "governmental authority" is defined in the Notification with the same meaning as assigned in the explanation to clause (16) of Section 2 of the IGST Act, 2017, reproduced below: ....
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.... services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, play-grounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds, prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 7.8. Similarly; Article 243G Powers authority and responsibilities of Panchayat and to carry out responsibilities and the implementation of schemes entrusted to them in relation to the matters listed in the Eleventh schedule of the Constitution. The functions entrusted to a Panchayat under the Eleventh Schedule of the....
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....ervision in examination hall by invigilators. 5. Practical tests or interviews after examination. 6. Evaluation of answer scripts and publishing of results. 7. Availed services from subject experts in the interview board. 7.10. Having concluded that the applicant is a "person" as defined under Section 2(84) of the CGST Act, 2017, and qualifies as a "governmental authority" under Para 2(zf) of Notification No. #2/2017-Central Tax (Rate), dated 28.06.2017, it is held that the services provided by the applicant in conducting examinations for recruitment to permanent posts in the Devaswom Boards constitute taxable services under the CGST Act. These services do not fall within the scope of exemptions provided under Serial Numbers 4 and 5 of the said Notification. 7.11. The next issue to be decided is whether the applicant is required to obtain registration under the CGST Act. The applicant is a governmental authority constituted under an Act passed by the State Legislature, and the services provided in connection with the recruitment of candidates to various posts in the Devaswom Boards constitute taxable supplies. Section 22 of the CGST Act lays down th....