Education sector not affected post GST

Unlike certain reports, the Central Government confirmed on Friday that there will be no tax levied on educational institutions for the services provided by them to students, faculty and staff, under the Goods and Services Tax (GST).

The Finance Ministry issued a statement saying, “Such reports that education will become expensive under GST are completely unsubstantiated. In fact, there is no change made in any subject relating to education in the GST era, except to reduce tax rate on certain items of education such as school bags.”

Primary and up to higher secondary or equivalent education are exempted under GST.

Certain services like canteen and transport were levied a service tax before GST and the same will continue under GST.

The statement also read, “Transportation of students, faculty and staff services provided to an educational institution (providing pre-school education and education up to higher secondary school or equivalent) are exempt from GST. Similarly, catering, including any mid-day meals scheme sponsored by the central government, state government or union territory, to an educational institution providing education up to higher secondary school or equivalent, are also exempt from GST. Further, security or cleaning or housekeeping services performed in such educational institutions are also exempt from GST. Services relating to admission to, or conducting of examination by, such institutions, up to higher secondary, too are exempt from GST. Hence, there has been no change in taxability of educational and other services on account of GST.”