No GST on examination fee charged by Central/States/NBE

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No GST on examination fee charged by Central/States/NBE is the latest update. It will help the students as they won’t have to pay an extra fee. The decision for the No GST on examination and GST relaxation for Mid-Day meals resulted from the council meeting held in May. Therefore, in this article, we will understand these important notifications by CBIC in detail.

Notification by Central and State Board and National Board of Examinations

The Central and State Board and NBE (National Board of Examinations) are autonomous bodies. These organizations provide numerous services. For instance-

  • Entrance examinations (on charging a fee) for admission to an educational institution,
  • Input services for conducting such entrance examinations for students,
  • Accreditation of educational institutions or professionals to authorize them to provide their respective services.

No GST on examination fee charged by Central/States/NBE

According to a CBIC notification, GST is exempt from services provided by Central or State Boards. Furthermore, services by NBE for conducting examinations for the students are also under GST Exemption. It also includes the conduct of entrance examinations for admission to an educational institution.

Consequently, GST shall not apply to any fee or any amount charged by such Boards for the conduct of a variety of examinations, including entrance examinations. However, The same applies to input services relating to exams

GST Exemption on Mid-day meals along with No GST on the examination fee

Similarly, the government has given a GST Exemption on mid-day meals. CBIC clarifies that serving food in schools under Mid-Day Meals is under GST Exemption irrespective of its funding from government grants or corporate donations. Besides, Anganwadis are also part of Educational institutions.

Therefore, serving food to anganwadis is also under GST Exemption. It doesn’t matter whether Corporates or the Government are sponsoring these meals so that everyone can benefit from GST Exemption.

Some Facts about GST

As the name suggests, The Goods and Services Tax (GST) is a tax imposed on the supply of goods and services. The examination services also attract GST. However, due to COVID-19 Pandemic, the government is giving several reliefs to taxpayers.

The primary goal of this tax structure is to manage the cascading effects of other indirect taxes. The other indirect taxes include service tax, excise duty, VAT, etc.

Benefits of No GST on examination fee and Mid-day meals

The experts suggest it is a positive move by the government. It will help stakeholders having GST Registration by saving the corpus amount. Moreover, it will encourage corporates to come forward and donate to the pre-schools and anganwadis.

New Functionalities deployed in GST Portal for GST Registration and GST Return Filing

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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