Tax Talks: Does GST Apply to Education and Allied Services?

I run a bus transport service where I provide services to schools for the transport of students to/from school. Do I need to charge GST on these services?

Ans: Most education services provided by schools and other educational institutions are exempted from GST, as well as services related to education. Let’s take a look at what the GST law says about the transport of students to and from schools. According to the GST law, as specified in Notification 12/2017, there is no GST applicable on services provided by an educational institution OR to an educational institution by way of transportation of its students, staff, and faculty members.

This applies to all educational institutions that provide services by way of preschool education and education up to higher secondary school or equivalent. Hence, there is no need to charge GST on school bus services provided to a school for the transport of its students, staff and faculty. 

I am planning to learn French at a foreign language school in India. Will I be charged GST on my course fees?

Ans: Education services provided by an educational institution to its students by way of preschool up to higher secondary school or equivalent are exempt from GST. However, any other educational services are chargeable at the rate of 18%.

In this regard, your French course at a foreign language school will be chargeable at 18% GST. 

I plan to send my child for cricket coaching at a private sports coaching centre. Can I understand why the coaching centre has levied GST on the coaching fees?

Ans: Services by way of sports training or coaching are exempt from GST only if the same is being provided by a charitable entity that is registered under Section 12AA of the Income Tax Act. It is likely that, in this case, the private coaching centre is not registered as a charitable institution under Section 12AA of the Income Tax Act. Hence, the fees charged would be liable to GST.

I am in Standard 12 and taking private tuition for Mathematics and Science. Is GST leviable on private tuition classes?

Ans: As explained earlier, only the education services provided by an educational institution to its students by way of preschool to higher secondary school level or equivalent are exempt from GST. Hence, tuition fees provided by a private tutor/private coaching centre will be liable to GST at 18%. However, GST will be charged only if the tutor’s/coaching centre’s turnover exceeds the threshold limit in a financial year, requiring them to obtain a GST registration. For service providers, this limit is Rs.20 lakh for normal category states and Rs.10 lakh for special category states (i.e. Northeast and hilly states.)

For any clarifications/feedback on the topic, please contact the writer at athena.rebello@clear.in