The 25th GST council meeting which was chaired by the finance minister Arun Jaitley and state finance ministers offered a great relief to the educational institutes. According to the decision, all the educational institutes and exam related services are now exempted from the goods and services tax.
Now the students will not be giving any kind of GST on the entrance exam fees which was taken earlier before the announcement. The GST relief is also provided on the transportation facilities given to the students and faculty staff of educational institutes.
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Lower GST Rate on Home Purchase
Apart from other exemptions, there will be the concessional rate applicable on the EWS, LIEG, MIG one and MIG one announced credit link subsidy scheme under the Prime Minister Aawaas Yojna (PMAY). Also, the announcement was made in order to further extend the exemption on the viability gap funding which is received from the airport under the regional contact scheme. Earlier it was of one year and also the government has excluded the profits from the petroleum.
There is a list of services exempted from GST:
- Exemption limit given to 1 RWA member has been increased from Rs 5000 to Rs 7500 per member, per month
- Service provided under RTI 2 exempted from GST
- GST rate has been reduced from 18 to 5 percent on the tailoring service.
- Subway, monorail construction projects have been reduced from GST 18 to 12 percent.
- Transport services are exempted from sending goods through a plane outside India.
- Ships will be exempted from sending goods out of the country. This rebate will last until September 30, 2018.
- Legal services that are available to government, local bodies and government authorities are excluded from the tax net
- GST will be 12% applicable to the building for 8 mid-day meals
- The rate of transportation of 10 raw petroleum products and petroleum products has been reduced to 18 to 5 percent (without input tax credit) and 12 percent (including ITC)
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