SUB GST p3.4

Taxation of Educational Institutions under GST

21 May 2020

Types of services

Services provided by an educational institution

• to its students, faculty, and staff;

• by way of conduct of entrance exam against consideration in the form of an entrance fee;

• to an educational institute, by way of, –

  1. transport of students, faculty, and staff;

  2. catering service including any mid-day meals scheme sponsored by the CG, SG or UT;

  3. any security or cleaning or house-keeping services given in such educational institution;

  4. services relating to admission to, or conduct of examination by, such institution;

  5. supply of online educational journals or periodicals.

  6. It also applies to an institution providing services by way of, –

     • providing education from pre-school to higher secondary school or equivalent; or

     • education – approved vocational education course

What is an Educational Institution under GST?

Educational institution means 

an institute providing services by way of 

providing education from pre-school to higher secondary school or equivalent; 

It is a part of a curriculum for getting a qualification recognized by any law for the time being in force;

It is a part of an approved vocational education course

Our Educational Services considered as Supply and its Taxability?

Taxable supply means a supply of goods or services or both which implies leviable tax under GST; 

The following services provided by an educational institution to its students, faculty, and staff or to an educational institution are not required to be taxed under GST.

• transport of students, faculty, and staff;

• catering service including any mid-day meals scheme sponsored by the CG, SG or UT;

• any security or cleaning or house-keeping services given in such educational institution;

• services relating to admission to, or conduct of examination by, such institution; etc.