It was revealed by Pankaj Chaudhary minister of state in the Ministry of Finance that the government has collected Rs 4792.4 crores from Goods and Services Tax (GST) applied before the education services in the FY 2023-24. Such services are not waived under GST with an 18% tax rate imposed on them under Service Accounting Code (SAC) 9992.
Dr. D Ravi Kumar, Chaudhury answering a question cited that the information for the GST collected on education services, which is not waived like commercial training and coaching, for the past 3 years is exceeding than Rs 10,000 crore in 3 years. The breakup shared by the minister is:
| Financial year | GST collected in cash (for SAC 9992) |
|---|---|
| FY 2021-22 | Rs 2859 crore |
| FY 2022-23 | Rs 4243 crore |
| FY 2023-24 | Rs 4,792.4 crore |
Also, the minister cited that the GST rates and exemptions are specified on the grounds of the suggestions of the GST Council, which is a constitutional body that consists of members from both the Union and State/UT Governments.
The furnished services via educational institutions to its students, faculty, and staff are waived from GST. Under GST exemption notification ‘Educational institution’ has been described as directed an institution furnishing the services via-
The exemption applies to the below-mentioned educational services-
Pre-school education and education up to higher secondary school or its equivalent; the education comprises a curriculum for qualifying acknowledged by the existing laws,
Read Also: GST Impact on Education Sector in India
Education within an approved vocational education course.
Also, the waiving off is extended to the services proposed to the schools up to the higher secondary level like-
- Transportation services for students, faculty, and staff
- Catering services, including government-sponsored mid-day meals
- Security, cleaning, and housekeeping services
GST exemption has been granted to the affiliation services proposed by the central or state educational boards, councils, or identical bodies to government schools w.e.f October 10, 2024. GST council has made the same suggestions in its 54th meeting.
