Exemption in education sector [ Entry No. 66 ] - GST Ready Reckoner - GST

Exemption entry 66 Exemption in education sector this exemption includes (a) Services provided, by an educational institution to its students, faculty and staff; by way of conduct of entrance examination against consideration in the form of entrance fee. Note:- All services provided by an educational institution to its students, faculty and staff have been exempt. (b) Services provided to an educational institution by way of transportation of students, faculty and staff by way of catering, including any mid-day meals scheme sponsored by the Government; by way of security or cleaning or house-keeping services performed in such educational institution; Exception Above mention first three exemption is apply to only on pre-school education ( includes aganwadi ) and education up to higher secondary school or equivalent.. by way of services relating to admission to, or conduct of examination by, such institution. supply of online educational journals or periodicals: Exception:- Above mention services does not apply on, if provided by an (i) pre-school education (includes aganwadi ) and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course. (c) Programmes offered by Indian Institutes of Management (IIM) Sl. No. Periods Programmes offered by Indian Institutes of Management Whether exempt from GST 1 1st July, 2017 to 30th January, 2018 Two-year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management, Fellow programme in Management, Five years integrated programme in Management. Exempt from GST One- year Post Graduate Programs for Executives, Any programs other than those mentioned at Sl. No. 67 of notification No. 12/2017- CT (Rate), dated 28.06.2017 . All short duration executive development programs or need based specially designed programs (less than one year). Not exempt from GST 2 31st January, 2018 onwards All long duration programs (one year or more) conferring degree/ diploma as recommended by Board of Governors as per the power vested in them under the IIM Act, 2017 including one- year Post Graduate Programs for Executives. Exempt from GST All short duration executive development programs or need based specially designed programs (less than one year) which are not a qualification recognized by law. Not exempt from GST (d) As per exemption entry no. 22(c) Services by way of giving on hire motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent. As per para 2(y) educational institution means an institution providing services by way of,- pre-school education and education up to higher secondary school or equivalent; education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (not by any foreign law) education as a part of an approved vocational education course; As per para 2(h) approved vocational education Course means a course run by an industrial training institute (ITI) or an industrial training centre (ITC) affiliated to the National Council for Vocational Training (NCVT) or State Council for Vocational Training (SCVT) offering courses in designated trades notified under the Apprentices Act, 1961; or a Modular Employable Skill Course, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship ,approved by the National Council of Vocational Training. Example Kulachi Hansraj a private school is providing transportation facility to its students; such services shall be exempt. Important Notification and Clarifications doubt about educational institution 1. Supply of food and beverage services provided by educational institution to student, faculty and staff, [ Circular No. 85/04/2019- GST Dated 01.01.2019 ] Clarification Supply of all services by an educational institution to its students, faculty and staff is exempt CBIC has now clarified that supply of food and beverages by an educational institution to it s student , faculty and staff, where such supply is made by the educational institution itself, is exempt supply of food and beverages by any person other than educational institution based on a contractual arrangement with such institution is leviable to GST @5%. 2. Circular No. 177/09/2022-TRU clarifies that Issues Held that Solution Applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions. Educational Services includes Services provided a. by an educational institution to its students, faculty and staff; [(aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee;]... It is clarified that the amount or fee charged from prospective students for entrance or admission, or for issuance of eligibility certificate to them in the process of their entrance/admission as well as the fee charged for issuance of migration certificates by educational institutions to the leaving or ex-students is covered by exemption Thus exempt. 3. Applicability of GST on supply of food in Anganwadis and Schools [ Circular No. 149/05/2021-GST ] Issues Held that whether serving of food in schools aganwadi under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations. it is clarified An Anganwadi interalia provides pre-school non-formal education. Hence, aganwadi is covered by the definition of educational institution (as pre-school) Services provided to an educational institution by way of serving of food ( catering including mid- day meals) is exempt from levy of GST irrespective of its funding from government grants or corporate donations [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates 4. Applicability of GST on various programmes conducted by the Indian Institutes of Managements (IIMs) [ Circular No. 82/01/2019- GST ] For the period from 1st July, 2017 to 30th January, 2018, IIMs were not covered by the definition of educational institutions. they were not entitled to exemption under Sl. No. 66 of the said notification. there was specific exemption to following three programs of IIMs under Sl. No. 67 of notification No. 12/2017- Central Tax (Rate): (i) two-year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management, (ii) fellow programme in Management, (iii) five years integrated programme in Management. Therefore, for the period from 1st July, 2017 to 30th January, 2018, GST exemption would be available only to three long duration programs specified above. Clarified that with effect from 31st January, 2018 , all IIMs have become eligible for exemption benefit under Sl. No. 66 of notification No. 12/ 2017- CT(Rate) dated 28.06.2017 . As such, specific exemption granted to IIMs vide Sl. No. 67 has become redundant. The same has been deleted vide notification No. 28/2018- CT(Rate) dated, 31.12.2018 w.e.f. 1st January 2019. Exemption Entry 67 (Now Omitted from w.e.f. 1st January 2019) Services provided by the Indian Institutes of Management , to their students, by way of the following educational programmes, except Executive Development Programme two year full time residential Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT), conducted by Indian Institute of Management; fellow programme in Management; five year integrated programme in Management. is exempt It has also been clarified that since IIMs have been conducting Post Graduate Programmes in Management and Fellowship Programmes which are equivalent to MBA and Ph.D degrees, respectively, such educational programme is exempt . 5. Taxability of services provided by Industrial Training Institutes (ITI) [ Circular No. 55/29/2018-GST ] Issues Solution (a) Whether GST is payable on vocational training provided by private ITIs in designated trades and in other than designated trades. It is clarified that If the education provided by these ITIs is approved as vocational educational course. Therefore, services provided by a private ITI in respect of designated trades notified under Apprenticeship Act, 1961 are exempt from GST As corollary, services provided by a private ITI in respect of other than designated trades would be liable to pay GST and are not exempt. (b) Whether GST is payable on the service, provided by a private Industrial Training Institute for conduct of examination against consideration in the form of entrance fee and also on the services relating to admission to or conduct of examination. It is clarified that In case of designated trades , services provided by a private ITI by way of conduct of entrance examination against consideration in the form of entrance fee will also be exempt from GST In respect of such designated trades, services provided to an educational institution, by way of, services relating to admission to or conduct of examination by a private ITI will also be exempt In case of other than designated trades in private ITIs, GST shall be payable on the Accreditation of educational institutions or professional so as to authorise them to provide their respective service is taxable. (c) services provided by a Government ITI to individual trainees/students. It is clarified that It is exempt under Sl. No. 6 of 12/2017-CT(R) dated 28.06.2017 as these are in the nature of services provided by the Central or State Government to individuals. Such exemption in relation to services provided by Government ITI would cover both - vocational training and examinations conducted by these Government ITIs. (6) As per Notification No. 04/2024- CT (Rate) dated 12th July 2024 following services are GST rate will b Nil w.e.f 15th July 2024 Entry No 12 , nothing contained in this entry shall apply to - (a) accommodation services for students in student residences; (b) accommodation services provided by Hostels, Camps, Paying Guest accommodations and the like. Important cases laws Eligibility for exemption under Serial Number 12 of Notification 12/2017-CT (Rate) dated 28.06.2017 - hostel accommodation services provided by the Applicant. [ M/S. Maharashtra Jain Education Society - 2024 (8) TMI 294 Maharashtra ] Leasing out residential premises as hostel to students and working professionals is covered under Entry 13 of Notification No.9/2017-IGST(Rate) dated 28.09.2017 namely 'Services by way of renting of residential dwelling for use as residence' issued under the Act. The petitioner is held entitled to benefit of exemption notification. [ Taghar Vasudeva Ambrish Versus Appellate Authority For Advance Ruling, Karnataka, Commissioner Of Central Tax Bangalore, Assistant Commissioner Of Commercial Taxes Lgsto-90, Bengaluru - 2022 (2) TMI 780 - Karnataka High Court ]