GST on Educational Institution: A short overview

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GST on Educational Institution: A short overview

GST on Educational Institution: A short overview

\“Educational Institution” means

 an institution providing services by way of,-

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course;

Entry No. 66 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28.06.2017 Exempt Following Services From GST-

Services provided –

(a) by an Educational Institution to its students, faculty and staff;

(b) to an educational institution, by way of-

(i) transportation of students, faculty and

staff;

(ii) catering, including any mid-day meals

scheme sponsored by the Central Government, State Government or Union territory;

(iii) security or cleaning or housekeeping services performed in such educational institution;

(iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary:

Note:-

Clause b Exemption Above is Not available to an institution providing services by way of pre-school education and education up to higher secondary school or equivalent

In short,

1. Services provided by an educational institution to its students, faculty and staff is exempt from tax

2. Key criterion for qualification of any service under the above exemption would be that education delivered results in a legally recognized qualification being granted to the student.

3. The essence of the above exemption is that the institution in question must qualify as an “educational institution” . Once this condition is fulfilled, the services provided by such institution to its students and faculty shall by default be eligible for the above exemption.

4. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification.

1 COMMENT

  1. Proviso in sl no. 66 states “Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.”

    Which means services mentioned in entry (b) of sl no. 66 shall be exempt if provided to institution providing education upto higher secondary only.

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