Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination)
Circular No. 151/07/2021-GST
CBIC-190354/36/2021-TRU Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th June, 2021
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal
Commissioners/ Commissioner of Central Tax (All) /
The Principal Director Generals/ Director Generals (All)
Madam/Sir,
Sub– Clarification regarding GST on supply of various services by Central
and State Board (such as National Board of Examination)–reg.
Certain representations have been received seeking clarification in respect of
taxability of various services supplied by Centre and State Boards such as National
Board of Examination (NBE). These services include entrance examination ( on
charging a fee) for admission to educational institution, input services for
conducting such entrance examination for students, accreditation of educational
institutions or professional so as to authorise them to provide their respective
services. The issue was examined by GST Council in its 43rd meeting held on 28th
May, 2021.
2. Illustratively, NBE provides services of conducting entrance examinations for
admission to courses including Diplomat National Board (DNB) and Fellow of
National Board (FNB), prescribes courses and curricula for PG medical studies,
holds examinations and grant degrees, diplomas and other academic distinctions. It
carries out all functions as are normally carried out by central or state educational
boards and is thus a central educational board.
3. According to explanation 3(iv) of the notification No. 12/ 2017 CTR, “Central and
State Educational Boards” are treated as Educational Institution for the limited
purpose of providing services by way of conduct of examination to the students
Therefore, NBE is an ‘Educational Institution’ in so far as it provides services by way
of conduct of examination, including any entrance examination, to the students.
3.1 Following services supplied by an educational institution are exempt from
GST vide sl. No. 66 of the notification No. 12/ 2017- Central Tax (Rate) dated
28.06.2017,
Services provided –
(a) by an educational institution to its students, faculty and staff;
(aa) by an educational institution by way of conduct of entrance
examination against consideration in the form of entrance fee;
3.2 Similarly, services provided to an educational institution, relating to
admission to, or conduct of examination is also exempt from GST [sl. No. 66 (b)(iv)-
12/2017-CT(r)].
3.3 Educational institutions are defined at 2(y) of the said notification as follows-
“(y) educational institution” means an institution providing services by way of, –
(i) pre-school education and education up to higher secondary school or
equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognized by
any law for the time being in force;
(iii) education as a part of an approved vocational education course;”;
Further, clause (iv) of Explanation of said notification reads as below:
“(iv) For removal of doubts, it is clarified that the Central and State Educational Boards
shall be treated as Educational Institution for the limited purpose of providing services
by way of conduct of examination to the students”
4. Taking into account the above, the GST Council has recommended, to clarify
as below:
(i) GST is exempt on services provided by Central or State Boards ( including
the boards such as NBE) by way of conduct of examination for the
students, including conduct of entrance examination for admission to
educational institution [under S. No. 66 (aa) of notif No. 12/2017-CT(R)].
Therefore, GST shall not apply to any fee or any amount charged by such
Boards for conduct of such examinations including entrance examinations.
(ii) GST is also exempt on input services relating to admission to, or conduct
of examination, such as online testing service, result publication, printing of notification for
examination, admit card and questions papers etc, when provided to such Boards
[under S. No. 66 (b) (iv) of notif No. 12/2017- CT(R)].
(iii) GST at the rate of 18% applies to other services provided by such Boards,
namely of providing accreditation to an institution or to a professional (
accreditation fee or registration fee such as fee for FMGE screening test ) so
as to authorise them to provide their respective services.
5. Difficulty if any, in the implementation of this circular may be brought to the
notice of the Board.
Yours faithfully,
(Rajeev Ranjan)
Under Secretary, TRU
Email: rajeev.ranjan-as@gov.in
Tel: 011 2309 5558
Download Click here