National Board of Examination In Medical Sciences Vs Union of India & Ors. (Delhi High Court)
Fees for conducting screening test and for accrediting medical institutions are taxable under GST: Delhi HC
Delhi High Court held that services provided for conducting screening test and the fees charged for accrediting medical institutions does not fall within the scope of Serial No.66(a) and Serial No.66(aa) of the 2017 Notification and hence not exempt from payment of GST.
Facts- The petitioner impugns a Circular No.151/07/2021-GST dated 17.06.2021, inter alia, clarifying that the Central and State Educational Boards, such as the petitioner, are educational institutions insofar as they provide services for conduct of examination, including any entrance examination, to the students. Accordingly, such services would be charged at NIL rate in terms of Notification No.12/2017 – Central Tax (Rate) dated 28.06.2017 issued by the Government of India under Section 11 of the Central Goods and Services Tax Act, 2017. However, the services rendered by such State or Central Boards, such as providing accreditation to an institution or to a professional [accreditation fee such as fee for Foreign Medical Graduate Examination (FMGE) screening test] would be chargeable to GST at the rate of 18%.
Conclusion- Held that the services provided by the petitioner for conducting screening test and the fees charged for accrediting medical institutions does not fall within the scope of Serial No.66(a) and Serial No.66(aa) of the 2017 Notification. Thus, clearly, the petitioner is not exempted from payment of GST in respect of the said services by virtue of the 2017 Notification. As noted above, screening tests are not conducted as a part of the curriculum. The said tests are also not in the nature of entrance examinations but are for the purposes of recognising primary medical qualifications secured by candidates from institutions abroad. The accreditation fee is charged from medical institutions for accrediting them. These services are also not covered under the relevant entries of the 2017 Notification. The candidates appearing for the screening tests are not students of the petitioner. Thus, the petitioner’s contention that it is exempt from payment of GST in respect of such services, is unmerited.
