In re Karnataka Secondary Education Examination Board (GST AAR Karnataka)
Central and State Board are considered as educational institutions for purpose of conducting examinations
The AAR, Karnataka in the matter of M/s. Karnataka Secondary Education Examination Board [Advance Ruling No. KAR ADRG 17/2022, dated July 01, 2022] has held that the Central and State Board are considered as educational institution for the purpose of conducting examination.
Facts:
M/s. Karnataka Secondary Education Examination Board (“the Applicant”) is an independent Board with statutory powers established by the Karnataka Secondary Education Examination Board Act, 1966 for the purpose of performing all the activities in relation to the conduct of public Examination. The Applicant’s main activities are printing papers, answer booklets, admit cards for which the Applicant maintains full ownership but the actual printing is done by the third party.
The Applicant contented that Examination forms, an integral part for obtaining a degree, and is the determinant factor for whether the student obtains the said qualification or not and hence come within the ambit of Educational Institution. The incidental services provided by the third party on behalf of the Applicant, of scarring of answer booklets and converting the same into digital images are all to be classified as services and would fall under the ervices provided by the educational institution” of the Notification 12/2017-Central Tax (Rate) dated June 28, 2017 (“Services Exemption Notification”) which provides that services relating to conduct of examination by the institution are liable to charge the Goods and Services Tax (“GST”) at Nil rate.
Issues:
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