Are Educational Services considered as Supply and its Taxability
Taxable supply means a supply of goods or services or both which is leviable to tax under GST;The following services provided by an educational institution to its students, faculty and staff or to an educational institution are not required to be taxed under GST.
Transportation of students, faculty and staff;
Catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
Security or cleaning or house-keeping services performed in such educational institution;
Services relating to admission to, or conduct of examination by, such institution up to higher secondary:
Provided that any service provided 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 is treated as a taxable service.
. Exemptions available to Institutions
Income from education is wholly exempt from GST if a charitable trust is running 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 a rural area.
Government or local authority or governmental authority carrying on the activity of education is exempted from GST as this is not included in the ambit of supply of services. For Example – Government schools / Municipal schools.
Education provided by below are also Exempted Under GST:
a. National skill development corporation set up by the Indian government
b. National skill development corporation approved sector skill councils
c. National skill development corporation approved assessment agencies
d. The national skill development programs approved by NSDC Vocational skill development program approved under national skill certification and monetary reward scheme
e. Any scheme implemented by NSDC with training partners
4. Exemption has also been granted to the services provided by the IIM–
a. 2 year full-time residential PG programs in Management for Post Graduate Diploma in Management, admission in which is granted via CAT
b. Fellowship programs in Management
c. 5 Year Integrated Programs in management studies (but excludes the Executive Development Program).
. Should educational institutions be registered under GST?
Where the educational institution is providing only education as a service then such fees are chargeable at NIL rate and such educational institutions are not required to be registered.
Where educational institutions are also providing other supplies or other services, i.e., providing books to students, providing shoes or uniforms etc to students then in such cases such institutions are liable to get themselves registered.
CAclubindia
