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

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.

These clarifications were issued on Thursday based on discussions at the 43rd GST Council meeting.

PTI reports that CBIC in a clarification on levy of GST on supply of various services by the Central and State Bard (such as National Board of Examination), has said that GST is exempt on services provided by central or state boards (including the boards such as NBE) by way of conduct of examination for the students. It includes the conduct of entrance examination for admission to an educational institution.

"Therefore, GST shall not apply to any fee or any amount charged by such boards for conduct of such examinations including entrance examinations," it said.

Besides, GST is also exempt on input services related 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.

Also Read: Students Complain of GST charges on NEET PG 2021 application, DNB course fee

However, "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 authorize them to provide their respective services," the circular clarified, as reported by Taxscan.in.

NBE currently is the responsible authority for conducting examinations in more than 70 disciplines in medicine. Apart from this NBE has accredited more than 700 institutions including hospitals in the public and private sector across the country.

While commenting on the matter, Rajat Mohan, senior partner at chartered accountants firm AMRG & Associates told Live Mint, "The government has clarified that GST shall neither be charged on fees collected by central or state boards for any examinations, including entrance examinations, nor on any services procured by them relating to admission, or conduct of such examinations. This clarification will lower the cost of such fees charged to millions of students appearing for the government exams every year."

Medical Dialogues had earlier reported that as the National Board of Examinations (NBE) had decided to charge GST on NEET-PG entrance exam and DNB courses from this year, students had started complaining about the issue. In fact, students have started comparing the service provided by NBE and the All India Institute of Medical Sciences (AIIMS) and also the fees charged by them.

Now this clarification from CBIC would certainly provide the medical students and aspirants with some relief in this regard. However, the CBIC has not only exempted GST on examination fees, it has also mentioned that supplying food to schools under mid-day meal scheme, pre-schools, and anganwadis would also be exempt from GST.

Under the goods and services tax (GST), any catering service, including mid-day meals, provided to an educational institution is now exempt from the levy.

Also Read: Finance Ministry notifies concessional GST rate on Covid-19 essentials