CENTRAL SCHOOL EXEMPTION

[MUSKAN AGARWAL]

IF A CENTRAL SCHOOL IS SERVICE RECEIVER OF FINANCE SERVICE.

SO CENTRAL SCHOOL IS EXEMPT FOR GST APPLICATION OR NOT

[KASTURI SETHI]

Dear Querist, . Who is service provider ? I mean to say constitution of the service provider.

[MUSKAN AGARWAL]

BUT ALL THE SCHOOLS HAVE NOT ANY GST REGISTRATION NUMBER SO WE HAVE NOT RAISE ANY GST BILL .

[Mahadev R]

Question could be elaborated. Not very clear.

[DR.MARIAPPAN GOVINDARAJAN]

Your query is not clear. Who is the service provider? Don't see other schools whether they have registered or not.

You have see your case whether you are covered under GST registration or not. As advised by my learned experts please elaborate your query.

[KASTURI SETHI]

I think the querist is indifferent towards his query whereas the experts are very enthusiastic in this context.

[MUSKAN AGARWAL]

SERVICE PROVIDER IS CHARTERED ACCOUNTANT FIRM

[Ganeshan Kalyani]

If school is receiving finance service, then question does not arises for the school to get registered. The supplier of service has to get registered under GST.

[KASTURI SETHI]

Notification No.12/17-Central Tax (Rate) dated 28.6.17 does not cover financial services provided to an educational institution. Financial services are not under Reverse Charge Mechanism. These are under Forward Charge Mechanism. So Service Provider/supplier is required to get itself registered under GST Act and collect GST from the educational institution. School is not required to get itself registered. Rightly advised by Sh.Ganeshan Kalyani Ji.

Relevant extract of notification no.12/17-CT(Rate) dated 28.6.17 as amended.

66	Heading 9992	Services provided - (a) by an educational institution to its students, faculty and staff;	Nil	Nil
		(b) to an educational institution, by way of,-
		(i) transportation of students, faculty and staff;
		(ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
		(iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; up to higher secondary:
		Provided that nothing contained in entry (b) 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.

AI Summary

GST registration requirement: supplier of financial services to an educational institution must register and charge GST; school need not register.
When a chartered accountant firm supplies financial services to a Central school, the supplier must register under GST and collect tax because financial services to educational institutions are not covered by the notification exemption and are subject to forward charge; the school as recipient need not register solely on that account, though it must assess its own registration requirements.