GST Leviable On Exam Fees Collected By Devaswom Recruitment Board : Kerala AAR

The Kerala Authority for Advance Ruling has ruled that examination fees collected by the Kerala Devaswom Recruitment Board attract GST. It said the Board must register under GST once its annual turnover crosses Rs 20 lakh.

The ruling was delivered by a coram comprising Jomy Jacob, Additional Commissioner of Central Tax, and Mansur M. I., Joint Commissioner of State Tax.

The Recruitment Board conducts selection exams for Devaswom Boards across Kerala. It had approached the Authority seeking clarity on whether GST registration was required and whether GST applied to application and examination fees.

The Board argued that it is a government-controlled, grant-in-aid body. It said the fees were collected only to meet administrative costs and were not commercial in nature.

The Authority rejected this claim. It held that candidates pay fees in return for clear services, including conducting exams, evaluating answer scripts, publishing results, and enabling recruitment.

It also ruled that the activity is not a sovereign or exempt government function. Recruitment examinations, the Authority said, are not functions assigned to local bodies under the Constitution.

The Authority noted that the services do not fall under any GST exemption. It clarified that GST becomes mandatory once taxable turnover exceeds the threshold financial year.

The AAR concluded that recruitment services provided by the Kerala Devaswom Recruitment Board are taxable. GST is payable on examination fees. Registration under GST is compulsory after crossing the threshold.