SERVICES PROVIDED TO EDUCATIONAL INSTITUTES

[Pankaj Aggarwal]

Dear Experts,

Whether taxi services for transportation of faculty or staff provided to educational institute i.e. university is exempted from GST or not?

[Alkesh Jani]

Sir,

In terms of Sl.No.66 (b) of Notification No. 12/2017 –CT (Rates) dated 28^th June, 2017, Services provided to educational institute is exempted but this exemption shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

In your case, educational institute is an University and therefore, exemption benefit is not available and GST @18% (CGST+SGST) is applicable.

Our experts may correct me if mistaken.

Thanks

[Pankaj Aggarwal]

Thanks for reply sir

Whether there is any change in entry 66 in ntfc 2/2018 CT rates dated 25.1.18 for transportation services for staff provided to university.

other members views solicited

[Alkesh Jani]

Sir, In terms of Notification No. 2/2018-CT-(Rates) dated 25th January, 2018, at Point No (o) (ii) the words upto higher secondary” is omitted which implies that this exemption is not available to even upto higher secondary and limited only to pre-school.

Thanks.

[Pankaj Aggarwal]

But proviso provide exemption upto higher secondary education

AI Summary

GST exemption for transportation to educational institutions narrowed, making university staff transport likely taxable after amendment.
Whether taxi transport of faculty or staff to an educational institute is GST-exempt is disputed. Under the original notification the exemption excluded institutions providing pre-school and education up to higher secondary, so a university's transport was taxable. An amendment removed the words referring to higher secondary, which suggests the exemption is now limited to pre-school only, but a proviso cited by a participant raises ambiguity about continued exemption for higher secondary institutions.