Gst On Education Services

V.D.N.Sravanthi,
AC(ST), EIU & AC(ST), Statistics, FAC
M.NARESH REDDY, STATE TAX OFFICER, EIU

Overview of Topics covered
 Introduction  Legal Provisions  Definition of Educationsl Institution  Taxability of Education Services  Taxable Education Services  Exempt Education Services  Place of supply  Major areas to be focussed  Checklist for Education Services

Introduction

Different levels of Education:

 Pre-primary

- Nursery to UKG

 Primary

- 1st - 5th Class

 Secondary

- 6th - 10th Class

 Higher Secondary - 11th and 12th class or Intermediate

 Higher Education - Degree and above

Core educational services are exempt from GST.
However, commercial education services are taxable @18%.

Legal Provisions
Section 9 of the CGST Act / Telangana GST Act, 2017, empowers us to levy and collect CGST and SGST on Education services.
Similarly Section 5 of the IGST Act, 2017, empowers us to levy and collect IGST on Education services.
Notification No.11/2017- CT(R) dt.28-06-2017 (as amended from time to time) regarding taxable services
Notification No.12/2017- CT(R) dt.28-06-2017 (as amended from time to time) regarding exempt services

Taxability of Education Services
 Education services are taxable @18% under Heading 9992
(Notification No.11/2017- CT(R) dt.28-06-2017 as amended from time to time)
List of education services which are exempt is exhaustive.
However, list of taxable education services is not exhaustive.
Hence any service which can be classified as education service and is not specifically exempt becomes taxable @18%.

Classification of Education Services

Service Code

Service Description

9992

Education Services

999210

Pre-Primary education services

999220 999231

Primary education services Secondary education services, general

999232 999241 999242 999243

Secondary education services, technical and vocational Higher education services, general
Higher education services, technical
Higher education services, vocational

Taxable/Exempt
Exempt Exempt Exempt Exempt Taxable/Exempt Taxable/Exempt Taxable/Exempt

Classification of Education Services

Service Code
9992

Service Description Education Services

999249

Other higher education services

999259 999291 999292 999293 999294
999295

Specialised education services
Cultural education services Sports and recreation education services
Commercial training and coaching services
Other education and training services nowhere else classified Services involving conduct of examination for admission to educational institutions

Taxable/Exempt
Taxable/Exempt Exempt
Taxable/Exempt Taxable/Exempt
Taxable Taxable
Taxable/Exempt

999299

Other educational support services

Taxable

Definition of Education Services
Educational institution means an institution providing services by way of:
 Pre-School education to Intermediate
 Those providing qualification recognised by any law for the time being in force, as part of curriculum (Curriculum means the subjects comprising a course of study)
 Approved vocational education course

Taxable Education Services
Commercial training and coaching services
Services provided by the Indian Institutes of Managements, by way of the Executive Development programme.
Any other services provided by the Indian Institutes of Managements which are not specifically exempted.
Certification courses, online or otherwise, offered by various educational institutions/Universities.

Taxable Education Services
Commercial training and coaching services
Services provided by an educational institution for obtaining a qualification not recognised by any law for the time being in force.
Eg: Foreign University.
Certification courses, online or otherwise, offered by various educational institutions/Universities.
Some reputed educational institutions charge a fee from Corporates/MNCs which come to their institutions to recruit candidates through campus interviews. They are taxable services.