Blog on Circular No. 151/07/2021-GST: GST on Services Provided by Educational Boards
<h4><strong>Introduction</strong></h4><p>The <strong>Central Board of Indirect Taxes and Customs (CBIC)</strong> issued <strong>Circular No. 151/07/2021-GST</strong> on <strong>June 17, 2021</strong>, clarifying <strong>GST applicability on services provided by Central and State Educational Boards</strong>, including the <strong>National Board of Examination (NBE)</strong>. The circular specifically addresses <strong>whether entrance examinations, accreditation, and other educational services are taxable under GST</strong>.</p><hr><h3><strong>Key Highlights of the Circular</strong></h3><h4><strong>1. GST Exemption on Conducting Examinations</strong></h4><ul><li>As per <strong>Explanation 3(iv) of Notification No. 12/2017-CT(R)</strong>, <strong>Central and State Educational Boards</strong> are treated as <strong>Educational Institutions</strong> <strong>only</strong> for the purpose of conducting examinations.</li><li><strong>Services provided by educational institutions to students, faculty, and staff are exempt from GST</strong>.</li><li><strong>Conducting entrance exams (such as NEET, JEE, or FMGE) is exempt from GST</strong>.</li></ul><h4><strong>2. Exemption for Input Services Related to Exams</strong></h4><ul><li>Services related to the <strong>admission process or conduct of exams</strong> are also <strong>GST-exempt</strong>.</li><li>This includes:<ul><li><strong>Online testing services</strong></li><li><strong>Publication of results</strong></li><li><strong>Printing of exam notifications, admit cards, and question papers</strong></li></ul></li><li>This exemption applies to <strong>service providers assisting educational boards in examination-related activities</strong>.</li></ul><h4><strong>3. GST Applicability on Accreditation and Other Services</strong></h4><ul><li>While <strong>examinations and related services are exempt</strong>, <strong>other services like accreditation and registration fees are subject to 18% GST</strong>.</li><li>Accreditation services include:<ul><li><strong>Granting approval to institutions or professionals</strong> (e.g., FMGE screening test registration).</li><li><strong>Certification of institutions to provide educational services</strong>.<a href="https://cms.plasament.com/storage/nisha/circular-refund-151.pdf">circular_refund_151</a><br> </li></ul></li></ul>