The central government has dismissed conjectures that education will become expensive under the Goods and Services Tax (GST). It said that services provided by an educational institution to students, faculty and staff were exempt under GST.

The ministry said education up to higher secondary school level does not attract GST on output services and also on most of the important input services.

Further, services by charitable registered entities relating to advancement of educational programmes or skill development for abandoned, orphaned or homeless children, physically or mentally abused and traumatised persons, prisoners or persons over the age of 65 years residing in a rural area are also exempt from GST.

Hence, there has been no change in taxability of educational and other services on account of GST.

GST Rates in Education Sector

 Particulars

Current

GST

Children’s Colour book

0

0

Stapler, pencil, sharpener

18.68

12

School Bag

12.5

18

Fountain pen, Nib

18.13

18

Refill

18.69

18

Exercise Book

18.68

12

 

 

Here is a list of services, as per a notification disseminated by the CBEC, that shall continue to be exempt from the levy of taxes, in the new GST regime as well.

  1. Services provided-

By an educational institution to its students, faculty and staff;

To an educational institution, by way of transportation of students, faculty and staff; catering, including any mid-day meals scheme sponsored by the government; security or cleaning or housekeeping services performed in such educational institution; services relating to admission to, or conduct of examination by, such institution; up to higher secondary.

  1. 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-

Two-year full-time residential 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 Indian Institute of Management;

Fellow programme in Management;

Five-year integrated programme in Management.

  1. Services by way of training or coaching in recreational activities relating to-

Arts or culture.

Sports by charitable entities registered under Section 12AA of Income Tax Act, 1961;

  1. And, lastly, any services provided by:

The National Skill Development Corporation set up by Government of India;

A Sector Skill Council approved by National Skill Development Corporation;

An assessment agency approved by Sector Skill Council or National Skill Development Corporation;

A training partner approved by National Skill Development Corporation or Sector Skill Services Council in relation to National Skill Development Programme implemented by the National Skill Development Corporation; or a vocational skill development course under National Skill Certification and Monetary Reward Scheme; or any other Scheme implemented by National Skill Development Corporation.

Services of assessing bodies empanelled centrally by Directorate General of Training, and the Ministry of Skill Development and Entrepreneurship, that fall under the Skill Development Initiative (SDI) Scheme shall also be exempt from GST in its first leg.

There was a 15% service tax on non-conventional courses and coaching classes. Now 18% tax will be charged. Eating and drinking services in the hostel will also be expensive.

Supplies provided by third parties like musical instruments, computers, sports equipment, after-school activities offered directly by third parties, food and accommodation supplied for excursion mentioned above and uniform, stationery, and other non-academic related supplies would not be exempt from GST.

blog comments powered by Disqus