{"id":20774,"date":"2019-06-28T17:30:17","date_gmt":"2019-06-28T12:00:17","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=20774"},"modified":"2021-03-22T15:31:36","modified_gmt":"2021-03-22T10:01:36","slug":"gst-on-educational-institutions","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/gst-on-educational-institutions\/","title":{"rendered":"In Depth Analysis of GST on Educational Institutions"},"content":{"rendered":"<p class=\"has-drop-cap\">Basic educational services have always been a part of exemption category since it forms the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a> of knowledge, training and growth of any individual. Whether it was service tax or its <strong><a href=\"https:\/\/enterslice.com\/gst-registration\">GST<\/a><\/strong> now, government has been kind enough to identify the essence of educational services and have kept basic educational services under exempt category which means <strong>GST on Educational Institutions<\/strong> 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.<\/p>\n\n\n\n<p><strong>Coverage under this topic:<\/strong><\/p>\n\n\n\n<ol><li>Meaning of Educational Institutions<\/li><li>What are the exemptions available to Educational Institutions?<\/li><li>GST Applicability on Private Coaching Centers<\/li><li>GST Applicability on Higher Education<\/li><li>Other Exemptions to Education Institutions<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Meaning of Educational Institutions<\/h2>\n\n\n\n<p><strong>&ldquo;Educational Institution&rdquo;<\/strong> means an institution providing service by way of &ndash;<\/p>\n\n\n\n<ul><li>Pre- School E and higher secondary school education or equivalent. It means Indian schools following CBSE or state curriculum plus International school following equivalent school education are covered.<\/li><\/ul>\n\n\n\n<ul><li>When Education is a part of curriculum for obtaining a qualification recognized by any law for the time being in force. It means educational institutions post school e,g college, universities, ICAI, ICSI , Law colleges \/universities , engineering institutes , medical institutes etc are covered. Indian institutes are covered as only they are providing qualification recognized by Indian law. It means foreign institutions are not covered.<\/li><\/ul>\n\n\n\n<p><\/p><div class=\"shadow2\">Qualification recognized by any law (Indian\nLaw) = such courses are approved or recognized by an entity established under a\ncentral\/state law including delegated legislation for granting recognition to\nany educational course.<\/div>\n\n\n\n<ul><li> Approved Vocational Education Courses. Vocational education course means.<ul><li>Course run by Industrial training institute or industrial training centre.<\/li><li>A Modular employable skill course approved by National council for vocational course where person running such <strong>MESC<sup><a href=\"https:\/\/mescindia.org\/\"><strong>[1]<\/strong><\/a><\/sup> <\/strong>is registered with Director General of Training, Ministry of Skill Development and Entrepreneurship.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p>Following are the situations of Institutions not covered by above definition of Vocational Educational Course:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>Centre running\n  type\/private institute\/shorthand courses<\/strong>\n  <\/td><td>\n  Not\n  exempt as not an ITI\/ITC , not registered with DGT\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  <strong>Courses by Air\n  Hostess Academy<\/strong>\n  <\/td><td>\n  Not\n  exempt as not an ITI\/ITC , not registered with DGT\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  <strong>Saraswati\n  Academy running Tally courses<\/strong>\n  <\/td><td>\n  Not\n  exempt as not an ITI\/ITC , not registered with DGT\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  <strong>MAYA Academy\n  running Animation courses<\/strong>\n  <\/td><td>\n  Not\n  exempt as not an ITI\/ITC , not registered with DGT\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Exemptions available to Educational Institutions<\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"594\" height=\"387\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-93.png\" alt=\"Exemptions available to Educational Institutions\" class=\"wp-image-20775\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-93.png 594w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-93-300x195.png 300w\" sizes=\"(max-width: 594px) 100vw, 594px\"\/><\/figure>\n\n\n\n<p>Provided that nothing\ncontained in point (1),(2)&nbsp; and (3) above\nshall apply to an educational institution other than an institution providing\nservices by way of pre-school education and education up to higher secondary\nschool or equivalent .<\/p>\n\n\n\n<p>Provided further that\nnothing contained in point (5) above shall apply to an institution providing\nservices by way of &ndash;<\/p>\n\n\n\n<p>Pre- school education and education up to higher secondary school and equivalent&nbsp; or<\/p>\n\n\n\n<p>Education as a part of an approved vocational education course. <\/p>\n\n\n\n<p><strong>Exemption to Charitable trust<\/strong> 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.<\/p>\n\n\n\n<p><strong>Government or municipals schools<\/strong> run by government, or local authority or governmental authority are kept outside the scope of supply hence exempt from GST on Educational Institutions.<\/p>\n\n\n\n<p>Also Read: <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/gst-on-educational-services\/\">GST on Education Services -A Complete Analysis<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Applicability of GST on Private Coaching Centers<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>Private\n  Coaching institute \/centre providing tuitions up to 12<sup>th<\/sup> class<\/strong>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  Not\n  Exempt (it is not education by school )-CBEC\n  <\/td><\/tr><tr><td>\n  <strong>Private\n  Coaching institute \/centre providing tuitions to CA Students <\/strong>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  Not\n  Exempt \n  <\/td><\/tr><tr><td>\n  <strong>Private\n  Coaching institute \/centre providing vocational courses &ndash;like mobile repair,\n  plumbing etc<\/strong>\n  <\/td><td>\n  Not\n  Exempt\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"493\" height=\"447\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Educational-Institution.png\" alt=\"Applicability of GST on Private Coaching Centers\" class=\"wp-image-20780\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Educational-Institution.png 493w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Educational-Institution-300x272.png 300w\" sizes=\"(max-width: 493px) 100vw, 493px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Applicability of GST on Higher Education<\/h2>\n\n\n\n<ul><li>Services provided to higher educational institutions are taxable.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>Supplier<\/strong>\n  <\/td><td>\n  <strong>Recipient<\/strong>\n  <\/td><td>\n  <strong>Remarks<\/strong>\n  <\/td><\/tr><tr><td>\n  Transporter\n  (hired by educational institution for transportation of students , faculty or\n  staff )\n  <\/td><td>\n  Pre-School\/Higher\n  secondary school \n  <\/td><td>\n  Transporter\n  providing services to pre-school\/higher secondary school-EXEMPT\n  &nbsp;\n  Transporter providing\n  services to college \/ICAI\/Educational institutions running approved VEC &ndash;GST\n  PAYABLE\n  <\/td><\/tr><tr><td>\n  Caterer (hired\n  by educational institution for supply of food\/drink)\n  <\/td><td>\n  Pre-School\/Higher\n  secondary school\n  <\/td><td>\n  Same as above\n  <\/td><\/tr><tr><td>\n  Security\n  Agency (hired by educational institution for security within EI)\n  <\/td><td>\n  Pre-School\/Higher\n  secondary school\n  <\/td><td>\n  Same as above\n  <\/td><\/tr><tr><td>\n  Cleaning or housekeeping\n  agency(hired by educational institution for security within EI)\n  <\/td><td>\n  Pre-School\/Higher\n  secondary school\n  <\/td><td>\n  Same as above\n  <\/td><\/tr><tr><td>\n  Providing\n  admission related \/conduct of exam related services\n  <\/td><td>\n  Each Category\n  Educational Institution \n  <\/td><td>\n  ABC conducts\n  entrance exam for school-EXEMPT\n  &nbsp;\n  ABC conducts\n  entrance exam for ICAI and charges for that-EXEMPT\n  &nbsp;\n  ABC conducts\n  entrance exam for Educational institution running approved vocational\n  educational course-EXEMPT\n  <\/td><\/tr><tr><td>\n  OIDAR services\n  of supply of online educational Journals\/periodicals (hired by EI for its\n  library)\n  <\/td><td>\n  Educational\n  Institution (Post School)-Providing recognized legal qualifications\n  <\/td><td>   OIDAR service   of online educational journals\/periodicals to school-GST payable   &nbsp;   OIDAR service   of online educational journals\/periodicals to school-EXEMPT   OIDAR service   of online educational journals\/periodicals to EI running approved VEC-GST   payable   &nbsp;   &nbsp;   &nbsp;   &nbsp;   &nbsp;   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul><li>Services provided by an educational institution are kept outside GST ambit.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>   <strong>Supplier<\/strong>  <\/td><td>   <strong>Recipient <\/strong><\/td><td>   <strong>Examples<\/strong><\/td><\/tr><tr><td>\n  Specified Educational\n  Institution\n  <\/td><td>\n  Student\n  <\/td><td>\n  Tuition fee,\n  transportation, picnic charges, annual function charges, canteen charges,\n  hostel charges -EXEMPT\n  <\/td><\/tr><tr><td>\n  Specified\n  Educational Institution\n  <\/td><td>\n  Faculty\n  <\/td><td>\n  Transportation,\n  food facility, others if any-EXEMPT\n  <\/td><\/tr><tr><td>\n  Specified Educational\n  Institution\n  <\/td><td>\n  Staff\n  <\/td><td>\n  Transportation,\n  food facility, others if any-EXEMPT\n  <\/td><\/tr><tr><td>\n  Specified\n  Educational Institution\n  <\/td><td>\n  Prospective\n  Student\n  <\/td><td>\n  Entrance test,\n  examination fees-EXEMPT\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul><li>When Services are Provided <strong>by Indian Institutes of Management (IIM)<\/strong>, as per the guidelines of the central government , to their students, by way of the following educational programmes. (<strong>Executive Development programme is not covered <\/strong>)<strong> :<\/strong><ul><li>Residential post graduate programmes in management of two year (full time) in which admissions are granted on the basis of Common Admissions test conducted by&nbsp; Indian Institute of Management. ;<\/li><li>Fellow programme in management;<\/li><li>Integrated programme of five years in management.<\/li><\/ul><\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"484\" height=\"384\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Educational-Institutions.png\" alt=\"GST on Higher Education\" class=\"wp-image-20781\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Educational-Institutions.png 484w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Educational-Institutions-300x238.png 300w\" sizes=\"(max-width: 484px) 100vw, 484px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Other Exemptions to Educational Institution<\/h2>\n\n\n\n<p><strong>Any\nservices provided by<\/strong><\/p>\n\n\n\n<ul><li>Government set up National Skill Development Corporation;<\/li><li>National Skill sector council approved sector skill council;<\/li><li>National Skill or sector skill council approved assessment agency;<\/li><li>The National Skill Development Corporation or the Sector Skill Council approved training partners <\/li><li>The National Skill Development Programme implemented by the National Skill Development Corporation; or<\/li><li>A vocational skill development course under the National Skill Certification and Monetary reward scheme; or<\/li><li>Any other scheme implemented by the National Skill Development Corporation.<\/li><li>Assessing bodies empanelled centrally by directorate general training, ministry of skill development and entrepreneurship by way of assessment under skill development initiative scheme.<\/li><li>&nbsp;Ministry of rural development in the form of training ( project implementation agencies ) under the Deen Dayal Upadhaya by way of offering skill or vocational training courses certified by national council for vocational traning.<\/li><\/ul>\n\n\n\n<p>Also Read: <a rel=\"noreferrer noopener\" aria-label=\"Impact of GST on Sales Promotion Schemes in India (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/impact-of-gst-on-sales-promotion-schemes\/\" target=\"_blank\">Impact of GST on Sales Promotion Schemes in India<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":20818,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2559],"tags":[],"acf":{"service_id":"96"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GST on Educational Institutions In Depth Analysis by Enterslice<\/title>\n<meta name=\"description\" content=\"Government has been kind enough to identify the essence of educational services and have kept basic educational institutions under GST exempt category.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/gst-on-educational-institutions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GST on Educational Institutions In Depth Analysis by Enterslice\" \/>\n<meta property=\"og:description\" content=\"Government has been kind enough to identify the essence of educational services and have kept basic educational institutions under GST exempt category.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/gst-on-educational-institutions\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-28T12:00:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-22T10:01:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/GST-on-Educational-Institutions.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":595,"readingTime":4,"nextPost":{"id":20791,"slug":"basic-fssai-registration-in-india"},"prevPost":{"id":20801,"slug":"role-of-virtual-cfo-in-sme"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/GST-on-Educational-Institutions.jpg","postTerms":"GST Registration","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/20774"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=20774"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/20774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/20818"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=20774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=20774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=20774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}