GST on Higher Education

[Biswajit Ghosh]

1) we are conducting 2 years Post Graduate Diploma Management Course under different specialisation like Marketing, HR, Finance, etc. This is under affiliation with All India Council of Technical Education.

2) Unit of TRUST. The Trust is exempted under Income Tax Act.

3) We are providing facilities to the student like Accommodation and Library Usages. Accommodation Fees is ₹ 60000/- per annum and Library Usages fees ₹ 25000/- p.a.

Accommodation Fees is below ₹ 1000/- per day which is exempted under GST Act.

As Library usages is a facility provided to student we feel the same also is exempted.

4) Beside the above 2 we are collecting Admission Fees and Tuition Fees. Also we are selling prospectus and Admission Forms (one time for both) ₹ 1500/-.

[DR.MARIAPPAN GOVINDARAJAN]

What is your query?

[Yash Jain]

Sir,

As the trust is involved in commercial activity of providing education, it is subject to gst. Accommodation charges are also subject to same.

Regards

[DR.MARIAPPAN GOVINDARAJAN]

The latest Advance rulings also confirms the levy of tax on commercial activities of the trust

AI Summary

GST applicability to educational services: commercial activity by a trust attracts tax, including accommodation charges. Whether GST applies to postgraduate diploma education and related services supplied by a trust: the trust charges tuition, admission and one time prospectus fees, and fees for accommodation and library access; the trust contends accommodation below the daily threshold and library use are exempt, but interlocutory responses and advance rulings treat the trust's provision of education and ancillary services as commercial activity subject to GST, with accommodation charges specifically regarded as taxable.