The goods and service tax will be a no stone heavy for the boarding and lodging students of under class X. The parents can take a sigh of relief as the government has announced clarification over the GST being actualised across the nation. It has mentioned that there is No GST on the boarding and lodging fees for the students under class X.
There were reports concerning that some of the unethical education institutes asked for 18% GST on the annual fees of boarding in schools and hostels. The government now clearly stated that the educational institutes operating lodging and boarding services from pre-school to higher secondary will be totally exempted from the GST.
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It was sourced from the government officials that the implementation of GST actually made a light impact on the educational institutions. It is unearthed that the items linked to the education and related services are now lesser on pockets after the GST.
In between, the finance ministry came across some reports regarding the expensive affairs of Resident welfare association after the GST. It was being said that the service rendered by the resident’s welfare associations will be expensive after the implementation of GST. In this regard, the centre government clarified that the RWAs of non-profit entities are completely GST exemption.
But there is always a condition prevailing, as one government official stated that, “If the aggregate turnover of such RWA is up to INR 20 lakh in a financial year, then such supplies would be exempted from GST even if charges per member are over INR 5000.”
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RWAs will then be liable for the goods and services tax on all the monthly paid expenses and the contributions which are being charged from the residents as when per member subscription crosses INR 5000 mark.