The Central Government denies all such
reports that education will become expensive under GST. It states that such
reports are completely unsubstantiated. In fact, there is no change made in
any subject relating to education in the GST era, except to reduce tax rate on
certain items of education such as school bags etc.
It
may be mentioned that services provided by an educational institution to
students, faculty and staff are exempt:
(i) pre-school
education and education up to higher secondary school or equivalent;
(ii) education
as a part of a curriculum for obtaining a qualification recognised by any law
for the time being in force;
(iii) education
as a part of an approved vocational education course.
transportation
of students, faculty and staff services provided to an educational institution
(providing pre-school education and education up to higher secondary school or
equivalent) are exempt from GST. Similarly, catering, including any mid-day
meals scheme sponsored by the Central Government, State Government or Union
territory, to an educational institution providing education upto higher
secondary school or equivalent, are also exempt from GST. Further, Security or
cleaning or housekeeping services performed in such educational institutions
are also exempt from GST. Finally, services relating to admission to, or
conducting of examination by, such institutions, upto higher secondary, too are
exempt from GST.
Thus, education up to Higher Secondary
School level does not suffer GST on output services and also on most of the important
input services. 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.
Furthermore,
services by an entity registered under section 12AA of the Income-tax Act by
way of charitable activities relating to advancement of educational programmes
or skill development for
(a) abandoned, orphaned or homeless
children
(b) physically or mentally abused and
traumatized persons
(c) prisoners
(d) 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.
*****
DSM/KA
