GST on Education Services, GST Rates HSN Codes for Education Sector. India’s most progressive tax reform is knocking on our doors, and CAknowledge.in team has taken various initiatives to facilitate successful implementation of this biggest reform in indirect tax structure and Indian economy. With a view to provide a basic understanding of GST to people at large CAknowledge.in has brought out this “GST on Education Services, GST Rates HSN Codes for Education Sector”

GST on Education Services

GST Rates on Education Services

HSN Codes on Education Services

Education Service under GST

Meaning of educational institution [2(y)]

 

(a) BY an educational institution to its students, faculty and staff;

(b) TO an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Central Govt, State Govt or Union territory;

(iii) security or cleaning or house-keeping services performed in such educational institution;

(iv) services relating to admission to, or conduct of examination by, such institution; upto 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.

(a) National Skill Development Corp set up by Govt of India;

(b) a Sector Skill Council approved by the National Skill Development Corporation;

(c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;

(d) a training partner approved by National Skill Development Corp or the Sector Skill Council, in relation to-

  • the National Skill Development Programme implemented by the National Skill Development Corporation; or

  • a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or

  • any other Scheme implemented by the National Skill Development Corp.

  • any other Scheme implemented by the National Skill Development Corp.

(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.

(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organised by a recognized sports body;

(b) another recognised sports body.

“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.

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In the context of vocational Education/training/skill development courses (VEC) offered by an institution, as an independent entity in the form of society or any other similar body, qualification implies a Certificate, Diploma, Degree or any other similar Certificate à

The words “recognized by any law” will include such courses as are approved or recognized by any entity established under a central or state law including delegated legislation, for the purpose of granting recognition to any education course including a VEC. [based upon F.No. 356/17/2012 – TRU dated 28.8.2012]

Meaning of approved vocational education course [2(h)]

“Approved vocational education course” means, –

  • 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 ; ora Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship;

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Whether composite activities, comprising of exempt and taxable supplies would be considered as composite supply, is again a difficult proposition. Section 2(30) is confined to “two or more taxable supplies, or any combination thereof”. Whether only two taxable supplies can be composite supplies or even a taxable supply and an exempt supply can be considered a composite supply needs to be analysed.

vide press release

(based upon advance ruling in the case of Choice Estates and Constructions Ltd. Vs. Commissioner – 2016 (5) TMI 515)

However, GST is applicable on the revenue share to the extent it is relatable to rendering of taxable service

Based upon an Service tax education Guide dated 20.06.2012

Service in respect of each qualification would, therefore, be assessed separately.

If an artificial bundle of service is created by clubbing two courses together, only one of which leads to a qualification recognized by law, then by application of the rule of determination of taxability of a service which is not bundled in the ordinary course of business, it is liable to be treated as a course which attracts the highest liability of service tax.

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. 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

[Confined only to these support services – Remaining are taxable}

(i)  transportation of students, faculty and staff;

(ii)  catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;

(iii)  security or cleaning or house-keeping services performed in such educational institution;

(iv)  services relating to admission to, or conduct of examination by, such institution; upto higher secondary.

Education being exempt from tax, Education Institution would be unable to claim ITC on various other support services; and with the increase in rate of GST, they would have to increase the fee. Success of GST depends upon seamless input tax credit.

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