Notice issued by Supreme Court on Plea challenging 18% GST on Diplomate of National Board course

Last updated: 25 August 2021

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The Supreme Court has issued a notice regarding a petition challenging the imposition of an 18% GST on fees for the Diplomate of National Board (DNB) course. The petitioner argues that the course should be exempt from GST, citing a previous exemption notification and a clarification circular. Despite this, students are reportedly being pressured to pay the GST on tuition fees, with threats of candidature cancellation.

Court :
Supreme Court of India

Brief :
In Association of Diplomate of National Board Doctors v. National Medical Commission and Ors [Writ Petition (Civil) No.904/2021 dated August 23, 2021], Association of Diplomate of National Board Doctors ('the Petitioner') has filed the current writ petition for quashing of Notification imposing of 18% Goods and Services Tax ('GST') on fee deposited by Diplomate of National Board ('DNB') students.

Citation :
Writ Petition (Civil) No.904/2021 dated August 23, 2021

In Association of Diplomate of National Board Doctors v. National Medical Commission and Ors [Writ Petition (Civil) No.904/2021 dated August 23, 2021], Association of Diplomate of National Board Doctors ('the Petitioner') has filed the current writ petition for quashing of Notification imposing of 18% Goods and Services Tax ('GST') on fee deposited by Diplomate of National Board ('DNB') students.

The Petitioner contends the course falls under the category of S no. 66(aa) of Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017 ('Services Exemption Notification') making the same to be exempted from GST. Along with that, even after clarification provided in Circular No. 151/07/2021-GST dated June 17, 2021, which mentioned that GST shall not apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations, The National Board of Examinations ('NBE') is forcing its students to pay extra GST on Education/ Tuition fees by way of threatening mails saying that if fee is not paid till August 5th them candidature will be cancelled.

The Hon'ble Supreme Court of India thereby in the Order dated August 23, 2021 taking into account the submissions of the Applicant that GST at the rate of 18% is being charged on the course fee payable by candidates for the DNB course and that there has been fee hike, has issued a notice looking into the aspect and has further observed that the courses conducted by NBE as mentioned in Circular stands exempted.

FAQ :

The petition challenges the imposition of an 18% Goods and Services Tax (GST) on the fees deposited by Diplomate of National Board (DNB) students for their course.

The petitioner contends that the DNB course falls under a category exempted from GST as per Notification No. 12/2017-Central Tax (Rate) and a subsequent clarification circular (Circular No. 151/07/2021-GST).

The Supreme Court has issued a notice in response to the petition, acknowledging the concerns about the 18% GST being charged on the DNB course fees and a reported fee hike.

Yes, the petition mentions that students are allegedly being threatened with candidature cancellation if they do not pay the extra GST on their education/tuition fees by a specified date.

The Supreme Court observed that the courses conducted by the National Board of Examinations (NBE), as mentioned in the relevant circular, should be exempted from GST.

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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