GST on Education Services

What is an educational institution under GST?

Educational Institution means an institution providing services by way of:

• Pre-school education and education up to higher secondary school or equivalent;
• Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
• Education as a part of an approved vocational education course;

  GST rates on education services 

Service Type/ Category	Description	GST
School education	Pre-school, primary, secondary	Exempt
Higher education services	Colleges, university, universities, and professional courses.	18%
Professional coaching	Exam Preparations, coaching centers	18%
E-learning	Online courses, digital education	18%

Following Education Related Services are Exempt Under GST:

• Curriculum-related or course materials,
• Assessment and examination fees,
• Student administrative services such as registration, the printing of academic transcripts, issuing or replacement of student cards, late fee payments, administration of the library etc
• Excursion and field trips related to the course of study or part of curriculum requirement, except for food and accommodation supplied on those trips
• Transportation of students, faculty, and staff;
• Catering, including any mid-day meals scheme sponsored by the Government;
• Security or cleaning or house-keeping services performed in such educational institutions;
• Services relating to admission to, or conduct of examination by, such institution; up to higher secondary

• National skill development corporation set up by the Indian government
• National skill development corporation approved sector skill councils
• National skill development corporation approved assessment agencies
• The national skill development programs approved by NSDC
• A vocational skill development program approved under national skill certification and monetary reward scheme
• Any scheme implemented by NSDC with training partners
• The exemption has also been granted to the services provided by the IIM–
• 2-year full-time residential PG programs in Management for Post Graduate Diploma in Management, admission in which is granted via CAT
• Fellowship programs in Management
• 5 Year Integrated Programs in management studies (but excludes the Executive Development Program).

Applicability of GST on higher educational institutions

Services provided to higher educational institutions are taxable and hence, the ‘input’ or supply of services such as transportation, catering, housekeeping, services relating to admission or conduct of examination to higher educational institutions will bear GST levy. This will have to be borne by the higher educational institution.

Exemption from GST Registration

• Non-profit institutions: Educational institutions run by charitable trusts, government bodies, or local authorities providing pre-school to higher secondary education are generally exempt from GST registration.
• No taxable services: Institutions offering only exempt educational services and with an annual turnover below the GST registration threshold can avoid registration.

Mandatory GST Registration

• Taxable services: Educational institutions providing coaching, vocational training, or other taxable services with an annual turnover exceeding the GST registration threshold must register.
• Ancillary services: Institutions offering ancillary services like transportation, hostel accommodation, or catering are generally required to register for GST.

Are books and stationery items sold by schools or colleges subject to GST?

Books are generally exempt from GST. However, uniform, stationery, and other non-academic related supplies are taxable under GST. Supplies provided by third parties like the musical instrument, computers, sports equipment and after-school activities offered directly by third parties are also taxable.

From,
Krishnkant Jakhotia
Mobile No. :- 9422507911
Email Id :-  taxtalknew@gmail.com