The Union government has denied reports that education became costlier under Goods and Services Tax. A statement released by the Finance Ministry on Friday called such reports “completely unsubstantiated” and reiterated that educational institutions are exempted from GST.
“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, the Finance Ministry statement said.
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 government-sponsored mid-day meals scheme, to an educational institution providing education up to higher secondary level are also exempt from GST.
Further, security, cleaning or housekeeping services performed in such educational institutions are also exempt from GST. Services relating to admissions, conduct of examinations, up to higher secondary, too are exempt from GST.
Some of the input services such as transport, and canteen, which were subject to service tax in pre-GST era is continued in GST regime, the statement said.
The charitable institutions registered under section 12AA of the Income-Tax Act, which provide skill development for underprivileged children, differently-abled, prisoners or senior citizens continue to remain outside the ambit of GST.
