School transport services for higher secondary institutions qualify for GST exemption when provided only to students and staff.

Transport services provided only to students and staff of higher secondary schools, under arrangements with the schools and not to the general public, fall within the GST exemption for services supplied to an educational institution by way of transportation of students, faculty and staff. The notification's definition of educational institution covers institutions providing education up to higher secondary level or equivalent. The proposed school bus and van service is therefore exempt under Serial No. 66(b) of Notification No. 12/2017-Central Tax (Rate), subject to compliance with the required motor vehicle permit conditions.

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Issues: Whether the proposed school bus and van transport service for students and staff of higher secondary schools is exempt from GST under Serial No. 66(b) of Notification No. 12/2017-Central Tax (Rate).

Analysis: The proposed service was to be provided only to students and staff of schools, under arrangements with the schools, and not to the general public. Serial No. 66(b) of Notification No. 12/2017-Central Tax (Rate) exempts services provided to an educational institution by way of transportation of students, faculty and staff, subject to the institution being one providing education up to higher secondary level or equivalent. The definition of educational institution in paragraph 2(y) of the notification covers institutions providing education up to higher secondary school or equivalent. The proposed activity was therefore found to fall within the exempt category, subject to the required permit under the relevant motor vehicle rules.

Conclusion: The proposed transport service is exempt from GST under Serial No. 66(b) of Notification No. 12/2017-Central Tax (Rate) read with paragraph 2(y) thereof.

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