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Basic educational services have always been a part of exemption category since it forms the basis of knowledge, training and growth of any individual. Whether it was service tax or its GST now, government has been kind enough to identify the essence of educational services and have kept basic educational services under exempt category which means GST on Educational Institutions will not be charged. What comprises of such basic educational institutions services is discussed below along with comprehensive details of all the relevant provisions applicable on educational services in India. This article describes Depth Analysis of GST on Educational Institutions.
Coverage under this topic:
“Educational Institution” means an institution providing service by way of –
Following are the situations of Institutions not covered by above definition of Vocational Educational Course:
|Centre running type/private institute/shorthand courses||Not exempt as not an ITI/ITC , not registered with DGT|
|Courses by Air Hostess Academy||Not exempt as not an ITI/ITC , not registered with DGT|
|Saraswati Academy running Tally courses||Not exempt as not an ITI/ITC , not registered with DGT|
|MAYA Academy running Animation courses||Not exempt as not an ITI/ITC , not registered with DGT|
Provided that nothing contained in point (1),(2) and (3) above 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 .
Provided further that nothing contained in point (5) above shall apply to an institution providing services by way of –
Pre- school education and education up to higher secondary school and equivalent or
Education as a part of an approved vocational education course.
Exemption to Charitable trust a school, college or education institution for abandoned , orphans, homeless children, physically or mentally abused persons, prisoners or persons over the age of 65 years or above residing in rural area, run by a charitable trust is exempt from GST.
Government or municipals schools run by government, or local authority or governmental authority are kept outside the scope of supply hence exempt from GST on Educational Institutions.
Read our article:GST on Education Services -A Complete Analysis
|Private Coaching institute /centre providing tuitions up to 12th class||Not Exempt (it is not education by school )-CBEC|
|Private Coaching institute /centre providing tuitions to CA Students||Not Exempt|
|Private Coaching institute /centre providing vocational courses –like mobile repair, plumbing etc||Not Exempt|
|Transporter (hired by educational institution for transportation of students , faculty or staff )||Pre-School/Higher secondary school||Transporter providing services to pre-school/higher secondary school-EXEMPT Transporter providing services to college /ICAI/Educational institutions running approved VEC –GST PAYABLE|
|Caterer (hired by educational institution for supply of food/drink)||Pre-School/Higher secondary school||Same as above|
|Security Agency (hired by educational institution for security within EI)||Pre-School/Higher secondary school||Same as above|
|Cleaning or housekeeping agency(hired by educational institution for security within EI)||Pre-School/Higher secondary school||Same as above|
|Providing admission related /conduct of exam related services||Each Category Educational Institution||ABC conducts entrance exam for school-EXEMPT ABC conducts entrance exam for ICAI and charges for that-EXEMPT ABC conducts entrance exam for Educational institution running approved vocational educational course-EXEMPT|
|OIDAR services of supply of online educational Journals/periodicals (hired by EI for its library)||Educational Institution (Post School)-Providing recognized legal qualifications||OIDAR service of online educational journals/periodicals to school-GST payable OIDAR service of online educational journals/periodicals to school-EXEMPT OIDAR service of online educational journals/periodicals to EI running approved VEC-GST payable|
|Specified Educational Institution||Student||Tuition fee, transportation, picnic charges, annual function charges, canteen charges, hostel charges -EXEMPT|
|Specified Educational Institution||Faculty||Transportation, food facility, others if any-EXEMPT|
|Specified Educational Institution||Staff||Transportation, food facility, others if any-EXEMPT|
|Specified Educational Institution||Prospective Student||Entrance test, examination fees-EXEMPT|
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