GST is an indirect tax that is collected on all goods and services in India. In the educational sector, there are certain educational courses and training programmes which are devoid from GST since the government is focused on providing education to each and every child in the country.
On the flip of the coin, the educational courses and training programmes also exist which attract GST. However, which courses and how much GST will be availed on them, depending on the type of course and its provider. Here in this article, all the educational services with GST will be explained in detail.
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Applicable GST Rate on Educational Services The SAC code and GST rate for educational services are as follows:
| Chapter/Section/Heading | Description of Service | GST Rates |
|---|---|---|
| 9992 | Education Services | 18% |
| 9992 |
(a) to students, faculty and staff of an educational institution (b) to an educational institution, in the form of transportation to students, faculty and staff;
| NIL |
| 9992 | Services granted by the Indian Institutes of Management, according to the guidelines of the Central Government, to their students, in the form of given below educational programmes, besides Executive Development Programme (a) Provide for the Post Graduate Diploma in Management, a two-year full-time Post Graduate Programme in Management. The Indian Institute of Management conduct Common Admission Test (CAT) for admission in the course. (b) fellow programme in Management; (c) five-year combined programme in Management. | NIL |
| 90 or Any Chapter | Technical support for education, rehabilitation, vocational training and employment of the blind like Braille typewriters, braille watches, teaching and learning aids and other instruments and vocational aids specifically altered for application of the blind Braille instruments, paper etc. | 5% |
Charitable Trust
The educational institutions which are governed by charitable trusts did not attract GST. Other than the general exemption, the charitable activities of educational institutions are listed under Section 12AA of the Income Tax Act for further exemption. The term charitable activity in the notification is defined as follows:
If a trust educates physically/mentally challenged persons, homeless children, orphans, the needy, etc, living in rural areas, such activity would be considered as charitable and income for it would be exempted from GST.
Composite & Mixed Supply Under GST
In case the boarding schools provide facilities such as lodging and boarding along with the education, it would be considered as a single entity and results in an exemption from GST. if the value of all three entities is combined then these services will also be contemplated as single and tax on it will be calculated as per the principles laid down.
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In another situation, if the fee structure for all the three entities-education, lodging and boarding is different then tax on such entities will be calculated separately. Because the education here is pondered as service while the facility of providing residence did not consider under GST.