TRANSPORATION SERVICE TO SCHOOL

[abhishek bhandari]

Dear Sir

We are providing transport service to students for pick up drop at school . We are directly charging amount for this service parents & school is providing nothing . This service is under NIL rated category .

But if we provide transporation service to school for edicational tour , picnic stc & school is paying amount for this after dedcuting TDS , now i want to ask whether this service to school is taxable or exempted.

Regards

ABHISHEK BHANDARI

[KASTURI SETHI]

Yes. Exemption is available if provided to school (an educational institution) and NOT direct to students. See Notification No.12/17-CT(R) dated 28.6.17 as amended from time to time up to 30.9.19 (Notification No.21/19-CT(R) dated 30.9.19.). School may use your service for educational tour, picnic etc. It is pertinent to mention that tour, picnic, conference etc. conducted by an educational institution are part of education. Also go through the following decision of AAR:-

2019 (29) G.S.T.L. 264 (A.A.R. - GST) = 2019 (9) TMI 984 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH IN RE : EMRALD HEIGHTS INTERNATIONAL SCHOOL

AI Summary

Student Transport Services for School Activities Exempt from GST, Clarifies Authority for Advance Ruling under Relevant Notifications. A transportation service provider inquired about the tax implications of providing services to schools. They offer transport for students directly to school, which falls under a NIL rated GST category. However, they sought clarification on whether transportation services for school activities like educational tours and picnics, paid by the school after TDS deductions, are taxable or exempt. The response clarified that such services are exempt when provided to educational institutions, as per the relevant GST notifications and decisions by the Authority for Advance Ruling.