Amount received from sale of prospectus

[ROHIT GOEL]

That university registered u/s 12AA of Income Tax Act is receiving amount on account of sale of prospectus, practical books from staff and sale of uniform to staff members which is reflected as income in income and expenditure account.

Whether GST is leviable on such amount as services provided by educational institution to its students or faculty is exempt ??

[ANITA BHADRA]

Education Services are classified in heading 9992 (as per Notification No. 11/2017-Central Tax (Rate)) and are further sub-divided into six groups (as per the Annexure to the same notification) comprising of Pre-primary, primary, secondary, higher, specialised and other educational & support services .:

The services provided by an educational institution to its students, faculty and staff are exempt from GST.

The services of conducting admission tests for admission to colleges in case of educational institutions are providing qualification recognized by law for the time being in force shall not be liable to GST.

Initially , such exemptions were available only up to educational Institutions of Higher Secondary Level .

As per the Guidance note of the Government on ‘GST on Education services’, the Government has clarified that “education as a part of a prescribed curriculum for obtaining a qualification recognized by a law.

This includes services to Universities also.

In the light of above provisions , GST is not leviable on service provided by University,

[DR.MARIAPPAN GOVINDARAJAN]

GST is not leviable on the amounts specified in your query as provided by educational institution to its students or faculty.

AI Summary

Education services exempt from GST: university-provided supplies and services to students and staff are not taxable.
Amounts received by a university for sale of prospectus, course materials and uniforms to students or staff are covered by the exemption for education services; services provided by an educational institution to its students, faculty and staff, including admission tests for recognized qualifications, are not subject to GST.