No GST levy on exam services, says Gujarat HC
In an important order, the Gujarat high court held that the government cannot levy goods and services tax
In an important order, the Gujarat high court held that the government cannot levy goods and services tax (GST) on services provided to educational institutions for conducting exams as "examination is an essential component of education".
With this conclusion, the bench of Justice J B Pardiwala and Justice Nisha Thakore quashed a decision of the Gujarat Appellate Authority for Advance Ruling that services provided by a private firm, Educational Initiatives Pvt Ltd, in the form of Assessment of Scholastic Skill Through Educational Testing (ASSET) for schools were liable to be taxed under CGST laws.
The company deals in products and solutions used by primary and secondary schools for assessment and learning.
It works with private and public schools and organizations such as the World Bank and has undertaken assessment projects with various state governments.
It prepares question papers and evaluates answers. The exams are conducted by schools on their premises or online.