logo

header-ad
header-ad

News

National

No GST on services provided by educational institutions

No GST on services provided by educational institutions

No GST on services provided by educational institutions

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coming as a huge relief for parents and students, the Good and Services Tax (GST) won't be applied on services provided by the educational institution to students, faculty and staff fully. Earlier there were reports that 18 per cent GST will be levied on annual subscription/fees charged for lodging in hostels.
The government has now released a press release saying that this isn't the same and the same shall not be believed. It may thus be noted that services provided by an educational institution to students, faculty and staff are fully exempt.
The statement read, "There is no change in tax liability relating to education and related services in the GST era, except a reduction in tax rate on certain items of education."
 
About GST
 
Considered as India's biggest tax reform, GST was implemented at midnight at Parliament's historic Central Hall, in the presence of President Pranab Mukherjee. The motive behind the same is to make the taxation process simpler by eliminating the concept of multiple taxations.
As per india.com report, GST replaces about 20 indirect taxes at both the Centre and in States and aims to unify the $2 trillion economy and 1.3 billion people into a single market. It aims to eliminate inefficiencies in the tax system that result in 'tax on tax', known as cascading of taxes.
 
Services exempted from GST
 
Thus, services of lodging/boarding in hostels provided by such educational institutions which are providing pre-school education and education up to higher secondary school or equivalent or education leading to a qualification recognised by law, are fully exempt from GST. No GST will be applicable on annual subscription/fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation. IT