No GST Leviable on course fees paid by students to educational institution

Last updated: 31 January 2024

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Quick Summary

The Delhi High Court has ruled that Goods and Services Tax (GST) is not applicable to course fees paid by students to educational institutions. The court directed the National Medical Commission to refund any GST previously collected on these fees. This decision aligns with existing exemptions for services provided by educational institutions to students.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Association of Diplomate of National Board Doctors v. National Medical Commission [W.P No. 10326 of 2021 dated November 1, 2023] directed the Respondent to refund amount of GST collected on course fees, as no GST is leviable on the amount of Course Fees paid to educational institutions.

Citation :
W.P No. 10326 of 2021 dated November 1, 2023

The Hon'ble Delhi High Court in the case of Association of Diplomate of National Board Doctors v. National Medical Commission [W.P No. 10326 of 2021 dated November 1, 2023] directed the Respondent to refund amount of GST collected on course fees, as no GST is leviable on the amount of Course Fees paid to educational institutions.

Facts

National Board of Examination ("the Respondent") issued notifications dated January 15, 2021 and August 19, 2021 ("the Impugned Notification") directing the DNB candidates to deposit GST amount along with the course fee. Aggrieved by the Impugned

Notification, Association of Diplomate of National Board Doctors ("the Petitioner") filed a writ petition before the Hon'ble Delhi High Court contending that GST is not leviable on course fees and, therefore, collection of the GST was erroneous.

Issue

Whether GST amount could be levied on course fees paid to educational institutions?

Held

The Hon'ble Delhi High Court in the case of W.P No. 10326 of 2021held as under:

Opined that, the Impugned Notification issued by the Respondent for collection of GST amount along with the course fees is liable to be set aside. Thereby, the writ petition is disposed of.
Directed that, the Respondent shall take steps to refund the amount of GST collected from the candidates.

Our Comment

As per Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, vide Entry No. 66, Services provided by the Educational Institutions to its students under Heading 9992 fall within the purview of exempted services, therefore no GST is leviable in aforesaid scenario.

FAQ :

No, according to the Delhi High Court ruling, GST is not leviable on course fees paid to educational institutions.

The Delhi High Court ordered the National Medical Commission to refund the GST amount that had been collected on course fees.

The court's decision is based on the understanding that services provided by educational institutions to their students are generally exempted from GST, as per Notification No. 12/2017-Central Tax (Rate).

The Association of Diplomate of National Board Doctors filed a writ petition challenging the collection of GST on course fees.