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Central and State educational boards including the National Board of Examination receive exemptions and tax rules for specific services under notification No. 12/2017-Central Tax (Rate). The boards do not collect goods and services tax on examination fees or entrance examination fees charged to students. Input services provided to these boards for admission or examination conduct are also exempt. Other services such as accreditation of institutions or professionals incur goods and services tax at the rate of 18 percent.
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Ask about this circular
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.
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.
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 -
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, -
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”
Yours faithfully,
(Rajeev Ranjan) Under Secretary, TRU Email: rajeev.ranjan-as@gov.in Tel: 011 2309 5558
