Educational institution

GST rate: services by educational institution to students, faculty and staff fully tax exempt


New Delhi, July 13: In a major development, the services provided by the educational institution to students, faculty and staff fully exempt from GST. The historical regime of indirect taxes GST kicked off on July 1 after Prime Minister Narendra Modi and President Pranab Mukherjee tossed it into the central hall of Parliament. The GST replaces approximately 20 indirect taxes in the Central and State and aims to unify the economy of $ 2 trillion and 1.3 billion people into one market.Also Read – How Sasaram Railway Station in Bihar Became a Hub for Students Troubled by Power Outages | Whole story

The GST aims to eliminate inefficiencies in the tax system that result in a “tax on tax”, known as a cascade of taxes. There are reports that GST@ 18% will be taken from the annual subscription / fee charged for accommodation in hostels. The government said in a press release that this was not true and should not be believed. “There is no change in the tax payable on education and related services in the GST era, except for a reduction in the tax rate on certain items of education “, indicates the government press release. Also Read – Calicut University 2021 Admission: Students Must Submit Anti-Dowry Declaration Letter for Admission to Various Colleges

It can be mentioned that the services provided by an educational institution to students, teachers and staff are fully exempt. The educational institution has been defined as an educational institution. Also Read – Swiggy and Zomato will now pay GST on catering services provided through them, says Sitharaman

  1. pre-school education and education up to upper secondary education or equivalent;
  2. teaching as part of a course for obtaining a diploma recognized by any law currently in force;
  3. as part of an accredited vocational education course.

Thus, accommodation / boarding services in hostels provided by these educational establishments which provide preschool education and education up to upper secondary education or equivalent or education leading to a diploma recognized by law, are totally exempt from GST. The annual subscription / fees charged as accommodation / accommodation costs by these educational institutions to its students for hostel accommodation shall not incur GST.

The Goods and Services Tax (GST) is a tax on the value added at each stage of the supply of goods and services. The GST is governed by a GST Council and its chairman is the Minister of Finance of India, Arun Jaitley. Under the GST, goods and services are taxed at the following rates: 5%, 12% and 18% and 28%. There is a special rate of 0.25% on raw precious and semi-precious stones and 3% on gold. In addition, a 15% tax or other rate in addition to the 28% GST applies to a few items such as soft drinks, luxury cars and tobacco products.


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