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TMI BlogGST on Education ServicesX X X X Extracts X X X X X X X X Extracts X X X X ..... Education Services are classified in heading 9992 (as per Notification No. 11/2017-Central Tax (Rate)) and are further sub-divided into six groups (as per the Annexure to the same notification) comprising of Pre-primary, primary, secondary, higher, specialised and other educational support services as below: Heading and Group Service Code (Tariff ) Service Description Heading no. 9992 Education services Group 99921 Pre-primary education services 999210 Pre-primary education services Group 99922 Primary education services 999220 Primary education services Group 99923 Secondary Education Services 999231 Secondary education services, general 999232 Secondary education services, technical and vocational Group 99924 Higher educatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , or conduct of examination by, such institution; up to higher secondary: Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent NIL / Serial No. 66 of Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 9992 Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme: - (a) 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; (b) fellow programme in Management; (c) five year integrated programme in Management. NIL / Serial No. 67 of Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 90 or any chapter Technical aids for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e coaching institutes would not be covered as such training does not lead to grant of a recognized qualification. Are services provided by way of education as a part of a prescribed curriculum for obtaining a qualification recognized by a law of a foreign country covered in the negative list entry? No. To be covered in the negative list a course should be recognized by an Indian law. Within the term educational institution , sub-clause (iii) covers institutions providing services by way of education as a part of approved vocational course , and institutions providing the above courses will come within the ambit of the term educational institution. Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, defines approved vocational education course as under: An approved vocational education course means, - (i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or (ii) a Modular Employable Skill Course, approved by the Natio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p to higher secondary or equivalent. (from pre-school to HSC). Thus if such auxiliary education services are provided to educational institutions providing degree or higher education, the same would not be exempt. For instance, the services of conducting admission tests for admission to colleges in case of educational institutions are providing qualification recognized by law for the time being in force shall not be liable to GST. Who will pay GST? Education Services are under forward charge. Therefore, GST shall be paid by the supplier of services. What will be the Place of Supply of Educational Services where the location of supplier of services and the location of the recipient of services is in India? As per section 12(6) of the IGST Act, 2017, the place of supply of services provided by way of admission to an educational or any other place and services ancillary thereto, shall be the place where the event is actually held or such other place is located. As per section 12(7) of the IGST Act, 2017, the place of supply of services provided by way of, - (a) organization of a cultural, artistic, sporting, scientific, educational or entertainment event incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. Their taxability will be determined in terms of the principles laid down in section 2(30) read with section 8 of the CGST Act, 2017. Such services in the case of boarding schools are naturally bundled and supplied in the ordinary course of business. Therefore, the bundle of services will be treated as consisting entirely of the principal supply, which means the service which forms the predominant element of such a bundle. In this case since the predominant nature is determined by the service of education, the other service of providing residential dwelling will not be considered for the purpose of determining the tax liability and in this case the entire consideration for the supply will be exempt. Let s take another example where a course in a college leads to dual qualification only one of which is recognized by law. Would service provided by the college by way of such education be covered by the exemption notification? Provision of dual qualifications is in the nature of two separate services as the curriculum and fees for each of such qualifications are prescribed separately. Service in respect of each qualification would, therefore, be assessed separately. If an artif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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