Services of Printing Question Papers for Examinations to Educational Institutions is exempt from GST

The AAR, West Bengal, inM/s. Saraswaty Press Limited [Advance Ruling No. 20/WBAAR/2023-24 dated September 13, 2023], ruled that the services of printing question papers for conducting examinations to educational institutions, will be covered under Sl. No. 66 of the Notification No. 12/2017-Central tax (Rate) dated June 28, 2017("the Service Exemption Notification") shall be treated as exempt supply.

Facts

M/s.Saraswaty Press Limited ("the Applicant") is an entity engaged in printing, including question papers for educational institutions. The applicant has been printing question papers for different Universities of various states and charging GST on invoices raised for such services. All its clients are primarily government-based-both Central and State Governments.

One of the clients, i.e., Jharkhand University of Technology, is of the view that the services provided by the applicant to them by way of printing of question paper to conduct examination are exempted from payment of tax in terms of the Service Exemption Notification and, therefore the Jharkhand University of Technology, asked for a refund of integrated tax charged by the applicant on supply of such services.

Issue

Whether the services of printing question papers for conducting examinations to educational institutions shall be treated as exempt supply?

Held

The AAR, West Bengal, in 20/WBAAR/2023-24 held as under:

• Observed that, In the definition of "educational institution," the following explanation has been inserted vide Notification No. 14/2018 – Central Tax (Rate) dated July 26, 2018/ corresponding West Bengal State Notification No. 1030 FT. dated July 27, 2018' which has been reproduced below: "(iv) For removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institutions for the limited purpose of providing services by way of conduct of examination to the students." 
• Noted that, the documents submitted by the applicant have been awarded an agreement/work order by the University, namely Jharkhand University of Technology. There is no dispute that this University, as referred above, is regarded as an "educational institution".
• Opined that,the process of conducting an examination includes pre-examination works, examination and post-examination works that can be treated as services relating to the conduct of examination.
• Directed that, that the supply of services for printing of question papers being provided by the applicant to different universities for conducting examinations shall be covered under Sl. No. of the Service Exemption Notification / West Bengal State Notification No. 1136 FT. dated June 28, 2017, as amended,andtherefore services of printing question papers for conducting examinations to educational institutions shall be treated as exempt supply.