07 September 2017
Catering, including any mid-day meals scheme sponsored by the Central government, state government or union territory, to an educational institution providing education up to higher secondary school or equivalent, are also exempt. Some of the input services like transport, canteen etc provided by private players to educational institutions were subject to service tax in pre-GST era and the same is continued in GST regime.
It means Catering Services or Housekeeping Services or Security Services etc., provided by the Private Players to educational institute has exemption i.e Private Players should not charge GST on such services ? if yes, Private Players has to bear GST or they can file that value of service under exemption services while rising invoice ?Please Clarify in which notification it given? Thanking you
07 September 2017
The private players will charge GST in their Invoices for the services rendered to you, It's your output service which is exempted, So you cannot take the input credit of the same. But they will charge the GST & will remit their liability.
26 July 2024
In India, whether an educational institution is required to register for GST depends on several factors, including the nature of the services provided and the institution’s aggregate turnover. Here’s a detailed look at the GST registration requirements for educational institutions:
### GST Registration Requirements for Educational Institutions
1. **Exempt Services Under GST**: - **Educational Services**: Under GST, certain educational services are exempt from tax. This includes services provided by educational institutions to their students, faculty, and staff. - **Types of Exempt Services**: The exemptions generally cover: - Services provided by educational institutions to students, faculty, and staff. - Educational services provided by schools, colleges, and universities. - Services related to the education of children, such as preschool, primary, and secondary education.
2. **When GST Registration is Required**: - **Aggregate Turnover**: If the aggregate turnover of the educational institution exceeds the prescribed threshold limit, GST registration may be required. As of the latest guidelines, the threshold limit for compulsory GST registration is ₹20 lakhs (₹10 lakhs for special category states) in aggregate turnover. - **Other Considerations**: - **Non-Exempt Activities**: If the institution is engaged in any taxable activities or services that do not fall under the exemption, it may need to obtain GST registration. - **Reverse Charge Mechanism**: If the institution is receiving taxable services from a registered supplier where GST is to be paid under the reverse charge mechanism, registration might be necessary.
3. **Voluntary Registration**: - Even if an institution is not required to register because it only provides exempt services, it might choose to register voluntarily. This could be beneficial for: - **Claiming Input Tax Credit (ITC)**: Registration allows the institution to claim ITC on any GST paid on inputs and services used in its business. - **Credibility**: Registered entities might be perceived as more credible and reliable.
4. **Exempt Services and Registration**: - **If Only Exempt Services**: If the institution exclusively provides exempt educational services and does not engage in any taxable activities, it may not be required to register for GST. However, maintaining proper documentation and compliance with GST regulations is essential.
5. **Compliance and Documentation**: - **Maintaining Records**: Even if registration is not required, keeping detailed records of services provided, invoices, and financial transactions is important. - **Regular Updates**: Keep updated on any changes in GST laws or exemptions that might impact your institution.
### Summary
- **GST Registration Requirement**: Educational institutions providing only exempt services are generally not required to register for GST if their aggregate turnover is below the threshold limit. - **Voluntary Registration**: Institutions may opt for voluntary registration to benefit from ITC or for other business reasons. - **Compliance**: Ensure proper documentation and compliance with GST laws, and consult a GST advisor for specific guidance based on your institution's activities.
For precise and tailored advice, especially considering the nuances of your institution’s operations and any recent changes in GST regulations, consulting a GST professional or tax advisor is highly recommended.
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