Impact of Goods and Service Tax (GST) on Education Sector - An Overview

1. The Smart Pro Classes – GST
(Compiled by Sukhvinder Singh Bhatia)
1 | P a g e @ g s t s u k h
GST & Education Sector: An Overview
Following services related to education are exempted under GST:
Services provided -
(a) by an educational institution to its students, faculty and staff;
(This is about Service Provider i.e. an Institute, Providing Education to Students, Faculty and Staff)
(b) to an educational institution, by way of - (This is about Availing Services by Educational Institute)
(i) transportation of students, faculty and staff; (School Buses/Cabs)
(ii) catering, including any mid-day meals scheme sponsored by the Central Government, State
Government or Union territory; (School Canteen)
(iii) Security or cleaning or house-keeping services performed in such educational institution; (Man Power
Services)
(iv) services relating to admission to, or conduct of examination by, such institution; upto higher
secondary: (Invigilator Fees, Examination Hall Rent etc.)
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.
AND
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 in Management.
AND
Any services provided by -
(a) the National Skill Development Corporation set up by the Government of India;
(b) a Sector Skill Council approved by the National Skill Development Corporation;
(c) an assessment agency approved by the Sector Skill Council or the National Skill Development
Corporation;
(d) a training partner approved by the National Skill Development Corporation or the Sector Skill
Council, in relation to-
(i) the National Skill Development Programme implemented by the National Skill Development
Corporation; or
(ii) a vocational skill development course under the National Skill Certification and Monetary Reward
Scheme; or
(iii) any other Scheme implemented by the National Skill Development Corporation.

2. The Smart Pro Classes – GST
(Compiled by Sukhvinder Singh Bhatia)
2 | P a g e @ g s t s u k h
Explanations:
Q1: Are Coaching Institute are also Exempted ?
Ans: No, if they are eligible for registration, GST @18% will be applicable.
Q2: Is the exemption only for Government Schools ?
Ans: No, It is for both Government and Private School, from Pre-Nursery to Higher Secondary.
Q3: Are all types of Education and Training Exempted ?
Ans: No, Only Education by Educational Institute, Notified Courses like Post Graduate Diploma by Indian Institute
of Management and Skill Development Courses by National Skill Development Corporation or its approved
Training Partner.
Q4: Are all types of Services Availed by Educational Institutes Exempted ?
Ans: No, For Educational Institutes providing education from Pre-Nursery to High Secondary, four types of above
mentioned services.
Q5: Is the Education Provided by Colleges or Universities Taxable ?
Ans: No, Traditional Courses like BA, B.Com, M.A., M.Com are Exempted, but the Services availed by such
institutes will not be exempted.
Q6: Will the Books and Stationery supplied by School be Exempted from GST ?
Ans: Books are Exempted, But not the Stationery. Supplier will charge Tax.
Q7: Will there be Tax on Hostel Fee ?
Ans: Yes, Hostel Fee and all related services like laundry, food etc will be charged @ 18% GST.
Q8: Will courses like Tally, DTP etc provided by private institutes be taxable ?
Ans: Yes, Only Skill Development course provided by NSDC or its partners will be exempted, other all courses will
be taxable.