GST exempt on exam fees

CBIC has clarified vide its circular dated 17th June 2021 that GST is exempt on exam fees in respect of exams conducted by central board or state boards. This includes conduct of entrance examination for admission to educational institutions.

Operative part of their circular is reproduced below:

(i) GST is exempt on services provided by Central or State Boards ( including the boards such as NBE – National Board of Examinations) by way of conduct of examination for the students, including conduct of entrance examination for admission to educational institution [under S. No. 66 (aa) of notif No. 12/2017-CT(R)]. Therefore, GST shall not apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations.
(ii) GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc, when
provided to such Boards [under S. No. 66 (b) (iv) of notif No. 12/2017-CT(R)].
(iii) GST at the rate of 18% applies to other services provided by such Boards, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test ) so as to authorise them to provide their respective services.

Copy of the circular can be found at the below site

https://www.cbic.gov.in/htdocs-cbec/gst/cgst-circ-idx-2017

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