In re Board of Secondary Education (GST AAR Rajasthan)
The Authority for Advance Ruling (AAR), Rajasthan, in the case concerning the Board of Secondary Education, examined whether various services received by the Board in relation to conducting examinations are exempt from GST under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, read with Circular No. 151/07/2021-GST dated 17.06.2021.
The applicant, a government authority registered under GST, conducts examinations and receives services including printing of answer sheets, question papers, OMR sheets, certificates and mark-sheets; online examination form filling; annual maintenance of computers used exclusively for examinations; supply of computer operators; processing of examination results; and transportation of examination materials and observers. The applicant contended that these services are directly and exclusively related to the conduct of examinations and qualify for exemption under Entry No. 66(b)(iv) of Notification No. 12/2017-CT (Rate). The notification exempts services provided to an educational institution relating to admission to, or conduct of examination by, such institution. Explanation (iv) to paragraph 3 of the notification clarifies that Central and State Educational Boards are to be treated as educational institutions for the limited purpose of conducting examinations.
Initially, the AAR had rejected the application on 17.06.2022 on the ground of maintainability, holding that under Section 95 of the CGST Act, advance rulings could be sought only in relation to supplies undertaken or proposed to be undertaken by the applicant. Since the Board was a recipient of services and not a supplier, the application was rejected without examining merits.
