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GST ON EDUCATIONAL SERVICES
Education is process of training and developing knowledge, skill and character of students by normal schooling. Education sector has always been a sensitive issue as it’s more of a social activity than a business one. As a result this sector enjoys a lot of exemption as they are not taxed or comes in negative list.
Services that are exempt –
- Services supplied by an educational institution to it’s students, faculty and staff is exempt from GST.
- And Services provided by educational institution to conduct entrance examination in the form of entrance fee is exempt.
- All services supplied to recognised educational institution relating to admission or conduct of examination by such recognised education institution will be exempt.
- Services supplied to educational institution of supply of online journals above HSC is exempt.
- Service of hire of motor vehicle for transportation of students, faculty and staff upto HSC is exempt
- Services supplied to recognised educational institution from pre school to HSC are exempt
Exemption not available to graduation and post graduation courses.
- transportation of students, faculty and staff
- catering, including mid day meal scheme sponsored by the government
- security or cleaning or housekeeping services performed in such educational institution.
Canteen services supplied in college by the educational institution itself is exempt. However, such service is taxed at 5% where it is supplied by through a contractor.
No GST is payable on hostel accommodation provided by educational institution to students even if amount is recovered on yearly basis.
Training or coaching in recreational activities relating to arts or culture or sports by charitable entities registered under section 12AA of the Income tax Act are exempt.
Boarding schools provide education services coupled with other services like dwelling units for residence and food. It is naturally bundled and supplied in the ordinary course of business. In the case of boarding school, predominant element of such bundle is that of providing education. Therefore, entire consideration for such supply is exempt.
Services provided by the Indian Institute of Management (IIM) to their students by way of following educational programmes is exempt
- 2 year full time post graduate programme in management, post graduate diploma in management
- fellow programme in management
- 5 year integrated programme in management
Exemption is not available for Executive Development Management
Below mention services are exempt under GST
- NSDC set up by the Indian Government
- NSDC approved sector skill councils
- And NSDC approved assessment agencies
- National skill development programs approved by NSDC vocational skill development program approved under national skill certification and monetary reward scheme.
- Any scheme implemented by NSDC with training partners.
Services provided by training providers under Deen Dayal Upadhyaya Grameen Kaushalya Yojana implemented by the Ministry of Rural Development, Government of India by way of offering skill or vocational training courses certified by the National Council for vocational training are exempt.
Training programmes where total expenditure borne by the Government is exempt.
Commercial education is tax at 18%. other services relate to education, not covere by the exemption would be tax at 18% with full ITC available in cases where no output service is exempt.
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