DNB doctors to get refund of GST paid with course fees: Delhi HC order
New Delhi: The Delhi High Court bench has recently held that the GST collected from the candidates pursuing Diplomate National Board (DNB) against the course fee paid by them has to be refunded.
With this observation, the Delhi High Court division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has asked the National Board of Examinations (NBE) to file an affidavit and disclose the names of all the candidates from whom the course fee and the GST had been collected.
Further, NBE has been directed to submit the details including the quantum of course fee and GST separately, the name of the hospital to which the course fee was remitted in respect of each candidate, and also the mode and date of remitting the funds to the hospital.
These directions were issued by the bench after NBE submitted that “the funds collected from various candidates, including the GST collected, are no longer available with NBE. The entire funds have been disbursed to various hospitals”.
The matter has been listed for further hearing on September 5, 2023.
The High Court bench was considering a plea by the Association of DNB Doctors challenging the NBE notification dated January 15, 2021, February 15, 2021 and August 19, 2021 asking the DNB candidates to deposit 18% Goods and Services Tax (GST) along with DNB course fees. According to the notification, the annual course fees for DNB doctors was Rs 1.25 lakh plus GST of Rs 22,500.
Also Read: Doctors Demand GST Exemption on DNB Fees
Diplomate of National Board (DNB) is a Post-graduate Master's degree same as MD/MS degree which is awarded to Specialist Doctors in India after they complete tenure of three years. The degree holds a similar value like that of Doctorate of Medicine (DM) and Master of Chirurgiae (MCh) awarded in medical and surgical super specialties.
Medical Dialogues had earlier reported that the Central Board of Indirect Taxes and Customs (CBIC) had previously clarified that fee 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 has clarified that 18% GST would be applicable for services provided by these boards such as granting accreditation to an institution or to a professional.
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.
NBE had allegedly directed the candidates to deposit the annual course fee of Rs 1,47,500 (including 18% GST) to the NBEMS account within 05.08.2021 and warned that failing to submit the fees within the deadline might lead to the cancellation of the candidature of the NBEMS trainee.
Later, the Association of DNB Doctors took the matter before the Apex Court. However, observing that the petitioner association, the Association of DNB Doctors is based in Delhi and the National Board of Examinations (NBE) against whom the relief is sought is also situated in Delhi, the Supreme Court bench had dismissed the plea and asked the association to file the case before the Delhi High Court.
As per the latest media report by The Tribune, during the hearing of the case, NBE did not dispute the fact that GST was not payable on the course fee. In fact, NBE had also acknowledged the fact that its demand from the candidates for paying GST on course fee was "erroneous".
However, NBE also submitted that the funds collected from the candidates, including the GST amount were no longer available with NBE as the entire funds had been disbursed to various hospitals.
The bench opined that the GST collected from the candidates will have to be refunded and directed NBE to file an affidavit and disclose the names of all candidates from whom the course fee and GST had been collected.
Also Read: 18 percent GST on DNB course fee: Doctors told to move Delhi HC
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