Relief to DNB, DrNB, FNB, Post MBBS Diploma medicos: HC Stay on NBE order calling for GST on medical course fee

New Delhi: In a breather to all NBE trainees, the Delhi High Court has imposed a stay on the order by the National Board of Examinations (NBE) levying 18 percent GST on DNB, DrNB, FNB and Post MBBS Diploma medicos at the time of payment of the annual course fee.

NBEMS trainees undergoing training for various Broad Specialty (DNB), Super Speciality (DrNB), Fellowship Courses (FNB) and Post MBBS Diploma courses are paying their annual course fee, for each year, directly to NBEMS as per public notices released on the official website of Natboard dated: 15.01.2021, 15.02.2021 and 19.08.2021. These notifications specified the annual course fee of Rs 1,25,000 lakh + Rs 22,500 (18 % GST) = Rs 1,47,500/- payable by NBEMS trainees at the commencement of each academic session.

The fee of Rs 1.25 lakhs was enhanced on 3 April 2019 under a clarification dated 15 February 2021 being applied to all ongoing broad speciality, special speciality and fellowship courses, irrespective of the year of joining.

Medical Dialogues had earlier reported that the Central Board of Indirect Taxes and Customs (CBIC) had previously clarified that fees paid to the various education boards including the National Board of Examinations (NBE) would not be subject to goods and services tax (GST) anymore.

This no GST policy, however, would be applicable only for the purpose of conducting entrance examination or admission process. CBIC had assured that 18% GST would be applicable for services provided by these boards such as granting accreditation to an institution or a professional.

Also Read NBE not to charge GST for Medical Entrance Tests, Admission, Clarifies CBIC

Following such clarifications from CBIC, the Association of DNB Doctors along with the Federation of Resident Doctors Association (FORDA) had written to the NBE regarding the matter and they questioned the inclusion of GST charges in the annual course fees of DNB candidates.

Also Read: Doctors Demand GST Exemption on DNB Fees

The Association of DNB Doctors then moved to the Supreme Court with the petition challenging 18% GST charges on DNB course fees and was directed to file the case before the Delhi High Court.

Also Read: Why 18 percent GST on DNB course fee: SC asks NMC, NBE

Now, when the matter was taken up during a recent hearing at the High Court, the bench of Honourable Justices Manmohan and Manmeet Pritam Singh Arora issued a stay order and ruled, "Operation of the impugned notifications dated 15th January 2021, 15th February 2021 and 19th August 2021 issued by the NBE are stayed to the extent they levy GST on students."

The bench considered an affidavit filed by of the respondents on the matter which stated:

"With regard to the query raised by this Hon'ble Court as to whether GST is payable on the course fee collected by respondent no. 2 i.e., National Board of Examinations (NBE) from the petitioner, it is submitted that under GST laws any service provided by an educational institution to its student for imparting education recognized by law is exempt from GST (entry no. 66 to notification no. 12/2017-CT(R) refers). Therefore, fee charged for medical education by medical college to its student is exempt from GST. This does not change even if the fee is passed through DNB, who in the instant case is acting only as a pure agent in so far as this fee amount is concern. It is not clear as to why DNB has taken a contrary interpretation with reference to the fee amount collected from medical students on behalf of medical colleges. It is thus reiterated that there is no change in provisions of taxability of GST by the CBIC which has necessitated NBE to issue such communication (notices dated 15.01.21 & 15.02.21). Services provided by NBE by way of conduct of examination (including entrance examination) for students is also exempt from GST."

Complying with the high court stay order, the NBE has issued an official notification for the information of all DNB, FNB, DrNB and Post MBBS Diploma trainees and various stakeholders that the GST charged by NBEMS on the annual course is suspended/adjourned till the final outcome of the High Court.

The NBE notification states:

The Hon'ble High Court of Delhi, vide its order dated 12.07.2022 in Writ Petition (C) No. 10326/2021, has been pleased to stay the operation of the public notices dated 15th January 2021, 15th February 2021 and 19th August 2021 to the extent they levy GST on the NBEMS trainees.

In compliance with the aforesaid order dated 12.07.2022 passed by the Hon'ble High Court of Delhi. GST charged by NBEMS on the annual course is suspended/adjourned till the final outcome of the Hon'ble Court, and the annual course fee shall be as follows –

Payment gateway charges shall be borne by the NBMES trainees.

For any queries, the medicos can write to NBEMS at coursefee@natboard.edu.in/Communication Web Portal.

To view the official NBE notification, click here