GST applicable on Fee Collected from Candidates in Recruitment Process: AAR:

GST applicable on Fee Collected from Candidates in Recruitment Process: AAR The applicant, Kerala Devaswom Recruitment Board, is established by the Government of Kerala. The applicant conducts examinations to select the eligible candidates for various job posts like Clerk, cashier, confidential assistant, office attendant, etc, in five Devaswom Boards across Kerala. The applicant also recruits employees on a deputation, contract, or coterminous basis.

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The applicant filed an application before the Kerala Authority for Advance Ruling (AAR) to seek an advance ruling on the following questions: "1: Whether GST Registration is to be obtained by the Board? 2: Whether GST is to be collected from the application fee collected from the candidates? 3: Whether GST is applicable for the activity of conducting an examination?"

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As per the Kerala AAR:

• The applicant is a taxable services provider and must be registered under GST if the aggregate value of supply of services is more than the specified limit under Section 22 of the CGST Act, or if the applicant falls under the specified categories to obtain GST registration under Section 24 of the Act.
• The applicant must charge GST on the application fees collected from the candidates, as per Section 9 of the CGST Act.
• The services given by the applicant to the candidates in the recruitment of eligible persons in various posts in the Devaswom Boards are a taxable supply under Section 2(108) of the CGST Act, 2017, and hence, GST is applicable for such activity.