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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 ..... e 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 education services 999241 Higher education services, general 999242 Higher education services, technical 999243 Higher education services, vocational 999249 Other higher education services Group 99925 Specialised education services 999259 Specialised education services Group 99929 Other education & training ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for education, rehabilitation, vocational training and employment of the blind such as Braille typewriters, braille watches, teaching and learning aids, games and other instruments and vocational aids specifically adapted for use of the blind Braille instruments, paper etc. 5%/ Serial No. 257 of Schedule I of the Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017 9023 Instruments, apparatus and models, designed for demonstrational purposes (for example, in education or exhibitions), unsuitable for other uses 28 %/ Serial No. 191 of Schedule IV of the Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017 Thus, services provided by an educational institution to students, faculty and staff are exempt. Educational Institution means an institution providing services by way of: i. pre-school education and education up to higher secondary school or equivalent; ii. education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; iii. education as a part of an approved vocational education course. Within the term "educational institution", sub-clause (ii) covers institutions providing services by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elopment and Entrepreneurship. It is to be noted that only those institutions whose operations conform to the specifics given in the definition of the term "Educational Institution", would be treated as one and entitled to avail exemptions provided by the law. This would mean that private coaching centres or other unrecognized institutions, though self-styled as educational institutions, would not be treated as educational institutions under GST and thus cannot avail exemptions available to an educational institution. Thus, educational institutions up to Higher Secondary School level do not suffer GST on output services and also on most of the important input services. Some of the input services like canteen, repairs and maintenance etc. provided by private players to educational institutions were subject to service tax in pre-GST era and the same tax treatment has been continued in GST regime. Thus output services of lodging/boarding in hostels provided by such educational institutions which are providing preschool education and education up to higher secondary school or equivalent or education leading to a qualification recognised by law, are fully exempt from GST. Annual subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the events or services referred to in clause (a), or assigning of sponsorship to such events, - i. to a registered person, shall be the location of such person; ii. to a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient. What will be the Place of supply of Educational Services where the location of the supplier of services or the location of the recipient of services is outside India? As per section 13(5) of the IGST Act, 2017, the place of supply of services supplied by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place where the event is actually held. Educational Institution run by charitable organizations. Charitable Trusts running institutions conforming to the definition of Educational Institution as specified in the notification would be entitled to the exemptions discussed above. Apart from the general exemption avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of a supply which is not bundled in the ordinary course of business, it shall be treated as a mixed supply as per provisions contained in section 2(74) read with section 8 of the CGST Act, 2017. The taxability will be determined by the supply which attracts highest rate of GST. However incidental auxiliary courses provided by way of hobby classes or extra-curricular activities in furtherance of overall well-being will be an example of naturally bundled course, and therefore treated as composite supply. One relevant consideration in such cases will be the amount of extra billing being done for the unrecognized component viz-a-viz the recognized course. If extra billing is being done, it may be a case of artificial bundling of two different supplies, not supplied together in the ordinary course of business, and therefore will be treated as a mixed supply, attracting the rate of the higher taxed component for the entire consideration. The Education guide of 2012 for the purpose of service tax has given the following important clarifications in respect of educational services. The same can be gainfully referred to, for the purpose of clarity under the GST regime: "The supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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