Goods and Services Tax – GST – By: – CA.VINOD CHAURASIA – Dated:- 6-11-2017 Last Replied Date:- 6-11-2017 – Introduction: This article discusses in details GST taxability on education sector. Education is the process of training and developing knowledge, skill and character of students by normal schooling. The GST Act tries to maintain a fine balance whereby core educational services provided and received by educational institutions are exempt and other services are sought to be taxed at the standard rate of 18%. Auxiliary services received by such educational institutions for the purpose of education up to Higher Secondary level is also exempt from GST Other services related to education, not covered by the exemption would be taxed at a standard rate of 18% with full admissibility of ITC for such taxable services in cases where the output service is not exempt. However, Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable a
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g or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or A Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. So in view of the above, Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be exempted from GST. Training given by private coaching institutes or other unrecognised institution or self styled educational institution would not be exempted as such training does not lead to grant of a recognized qualification. Services provided by way of education as a part of a prescribed curriculum for obtaining a qualification recognized by a law of a foreign country are also not exempted because the course / degree not recognized by Indian Law. Education Services are classified in
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aning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; up to higher secondary: 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 NIL as per serial no 66 of notification no. 12 CTR dated 28th June 2017 9992 Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme: – (a) two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management; (b) fellow programme in Management; (c) five year integrated programme
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r equivalent or education leading to a qualification recognised by law, are fully exempt from GST. Annual subscription/fees charged as lodging/ boarding charges by such educational institutions from its students for hostel accommodation shall therefore, not attract GST. Input services like canteen, repairs and maintenance etc. provided by private players to educational institutions are subject to GST. As output services are exempted, the Educational institutions may not be able to avail credit of tax paid on the input side. Auxiliary education services entry no 66 of notification no. 12, if provided to educational institutions providing degree or higher education, the same would not be exempt from GST. The supply of placement services provided to educational institutions for securing job placements for the students shall be liable to GST. Educational institutes such as IITs, IIMs charge a fee from prospective employers like corporate houses/ MNCs, who come to the institutes for recruit
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l be the location of such person; To a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient. Place of supply of Educational Services where the location of the supplier of services or the location of the recipient of services is outside India The place of supply will be the place where the event is actually held. Composite and Mixed Supply in Education sector If in Boarding schools, charges for education and lodging and boarding are inseparable then it exempt from GST. Provision of dual qualifications is in the nature of two separate services as the curriculum and fees for each of such qualifications are prescribed separately. Service in respect of each qualification would, therefore, be assessed separately. The author is a practising CA based in Delhi and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91
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