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

Notice issued by Supreme Court on Plea challenging 18% GST on Diplomate of National Board course 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. DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.