GST on various services by or to educational institutions

As per Notification No. 12/2017 - Central Tax (Rate), services provided by an educational institution to its students, faculty, and staff are exempted from GST. Also, some services provided to educational institutes are exempted.

Here, "educational institution" means an institution providing services by way of-

1. Pre-school education and education up to higher secondary school or equivalent;
2. Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
3. Education as a part of an approved vocational education course.

Services related to exempt educational institutions

1. Services provided -
   1. By an educational institution to its students, faculty, and staff
   2. (aa) By an educational institution by way of conducting of entrance examination against consideration in the form of an entrance fee
   3. (b) To an educational institution, by way of-
      • Transportation of students, faculty and staff
      • Catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory
      • Security or cleaning or housekeeping services performed in such educational institution
      • Services relating to admission to, or conduct of examination by, such institution
      • Supply of online educational journals or periodicals
2. Services provided by rehabilitation professionals by way of rehabilitation, therapy, or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centres established by the Central Government, State Government or Union territory or an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 (43 of 1961).
3. 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 up to higher secondary school or equivalent.
   
   There are plenty of advanced rulings on the taxability of various services provided by or to educational institutions. We have compiled it for you!

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Conclusion

Education institutions and their vendors are advised to verify the tax implications of their services before issuing quotations or invoices. While many services exchanged within or for educational institutions may be exempt from taxation, it is imperative to assess each situation individually, potentially seeking guidance through advance rulings.

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