GST on various services by or to educational institutions | LogiTax

GST on various services by or to educational institutions

05-04-2024

GST

Mrudula Joshi

GST on various services by or to educational institutions

As per Notification No. 12/2017 - Central Tax (Rate), services provided by an educational institution to its students, faculty, and staff are exempted from GST. Also, some services provided to educational institutes are exempted.

Here, "educational institution" means an institution providing services by way of,-

pre-school education and education up to higher secondary school or equivalent;
education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
education as a part of an approved vocational education course.

Services related to exempt educational institutions:

Services provided -
1. by an educational institution to its students, faculty, and staff; (aa) by an educational institution by way of conducting of entrance examination against consideration in the form of an entrance fee;
2. (b) to an educational institution, by way of,-
  1. transportation of students, faculty and staff;
  2. catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
  3. security or cleaning or housekeeping services performed in such educational institution;
  4. services relating to admission to, or conduct of examination by, such institution
  5. upply of online educational journals or periodicals
Services provided by rehabilitation professionals by way of rehabilitation, therapy, or counseling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by the Central Government, State Government or Union territory or an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 (43 of 1961).
Services by way of giving on hire, motor vehicle for transport of students, faculty, and staff, to a person providing services of transportation of students, faculty, and staff to an educational institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

There are plenty of advanced rulings on the taxability of various services provided by or to educational institutions. We have compiled it for you!

Sr No.	Name of the applicant	Order Date	State	Ruling
1.	GOPSON PRINTERS PVT LTD	27/09/2023	Uttar Pradesh	Eligibility to exemption to the activity of printing of Question Paper, OMR Sheets, Answer Sheets, Marks sheets, Certificate, and other documents required by an educational institution: The items such as Question papers, admit cards, answer booklet, pass certificates, fail marks Card, Certificate, ID cards, and other formats used during the examination and envelops for packing answer booklets, are covered within the ambit of services relating to admission to, or conduct of examination by an educational institution. Hence, all the services relating to admission to or conduct of examination, by an educational institution, within the meaning of educational institution as defined under Notification 12/2017-CT (Rate) will qualify for exemption vide Sl.no 66 of Notification 12/2017-CT (Rate).
2.	SARASWATY PRESS LIMITED	13/09/2023	West Bengal	Whether the supply of services for printing of question papers of different educational institutions and other related examination activities for universities be treated as services to an educational institution relating to the conduct of examination and exempt from GST? The supply of services for printing of question papers being provided by the applicant to different universities for conducting examinations shall be covered under serial number 66 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017, as amended, therefore shall be treated as exempt supply.
3.	V S HI-TECH SECURITY FORMS PRIVATE LIMITED	22/09/2023	Telangana	Taxability of supply of printing services to various educational institutions: The activities of service of printing of Pre-examination items like printing services viz; OMR sheets, Answer sheets, marks cards etc to an educational institution; printing of post-examination items like marks cards, grade card, and certificates to the educational boards of up to higher secondary; and scanning and processing of results of examinations, are exempt from GST as per entry no.66 of the Notification No.12/2017-Central Tax (Rate), dtd.28-06-2017.
4.	MUNIYASAMY ABINAYA	25/08/2023	Tamil Nadu	Whether GST is appliable to the activity of transport of staff and students of the school as school bus operator, by school bus/van; and if GST is applicable, then the percentage of GST to be charged to parents and to school for arranging pick up and drop off of their staff? The applicant’s activity of providing transport services to the education institutions by way of transportation of students and staff is eligible for exemption vide Sl. No.66 of Notification No. 12/2017-Central Tax (rate) dated 28.06.2017, if the services provided by the applicant are to an educational institution as defined in Para No. 2(y) of the said notification and the necessary permit has been obtained as mandated under the Tamil Nadu Motor Vehicles (Regulation and Control of School Buses) Special Rules 2012.
5.	RAGHUBALA CONSTRUCTION CO.	01/09/2023	Rajasthan	Availability of GST exemption to online and off-line printing of Pre-examination items; designing, developing, and managing Web-based applications and related services for conducting online Examination; and post-examination services of scanning and processing of examination results: Services provided by the applicant to the universities in respect of the conduct of examination (both pre and post examination) is exempted from payment of tax under the GST Act vide serial number 66 of Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017.
6.	CAE SIMULATION TRAINING PRIVATE LIMITED	01/12/2022	Uttar Pradesh	Whether the supply of education and training services to commercial pilots in accordance with the training curriculum approved by the Directorate General of Civil Aviation is covered under Sl. No. 66 (a) of the Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017 and thereby, exempted from levy of GST? The applicant does not provide any license to the pilots as they are not the competent authority. Issuance and granting of commercial pilot licenses fall under the exclusive domain of DGCA. The applicant is only conducting training courses which helps the trainees to increase/accumulate ratings for flying specific aircraft. Merely conducting a course or its completion is not a qualification that is recognized by law. Therefore, the supply of education and training services to commercial pilots in accordance with the training curriculum approved by the Directorate General of Civil Aviation for obtaining the extension of aircraft type ratings on their existing licenses is not exempted under Sl. No. 66 (a) of the Notification No. 12/2017-Central Tax (Rate).
7.	RAGHUBALA CONSTRUCTION CO.	12/04/2023	Telangana	Whether supply of printing services like question papers, OMR sheets, Answer sheets, marks cards, etc to an educational institution exempt from GST? Supply of Printing of test papers/question papers, OMR sheets, Certificates, Marks Memo, MICR checkbooks, etc. using his own paper and ink to educational institutions is a composite supply, of which Printing services is the principal supply which makes the supply exempt from payment of GST as per Sr. No. 66(b)(iv) of Notification No. 12/2017-CT(R).
8.	HOSUR COIR FOAMS PRIVATE LIMITED	28/03/2023	Tamil Nadu	Applicable GST rate on the supply of Mattresses to Hostel students of Government Schools and Educational Institutions of the Government of Karnataka: Mattresses, classifiable under HSN 940429, supplied by the applicant in the State of Tamil Nadu to hostel students of Government Schools, and educational institutions of the Government of Karnataka is liable to 18% GST.
9.	SRI ANNAPURNESHWARI ENTERPRISES	23/01/2023	Karnataka	Whether providing catering services to Educational Institutions from 1st standard to 2nd PUC liable to GST under entry No.66 of Notification No. 12/2017-Central Tax (Rate)? Applicant’s supply of ready-to-eat food by way of catering service to a Pre-University College is covered under entry No.66 of Notification No. 12/2017-Central Tax (Rate) dated: 28.06.2017 as amended and exempted from GST.
10.	UNIVERSITY OF KOTA	11/11/2022	Rajasthan	Whether the services relating to the grant of affiliation to colleges for imparting education is a supply of service liable to levy of GST under the CGST Act, 2017? The applicant's claim is based on entry at SI.No.66 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017. The entry at 66(b)(iv) seeks to exempt only those services provided to such institution about admission of students or conduct of examination for such admission to all the educational institutions, including the higher educational institutions, which were not exempted up to this amendment - affiliation fees under the general functions by the University to colleges appeared to be not relating to admission to or conduct of examination by such institution and would not fall under the ambit of the exemption provided in the Notification No. 12/2017-C.T.(Rate). Therefore, ‘affiliation’ fees collected by the applicant are not exempted under the entry Sl. No.66 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017, as amended.

Conclusion :

Education institutions and their vendors are advised to verify the tax implications of their services before issuing quotations or invoices. While many services exchanged within or for educational institutions may be exempt from taxation, it is imperative to assess each situation individually, potentially seeking guidance through advance rulings.