GST on Extra Classes

[Rajesh Kumar]

Respected experts,

As per para No. 2.1 of Circular No. 85/04/2019 dated 01.01.2019,wherein it has been mentioned that

Supply of all services by an educational institution to its students, staff and faculty is exempt under Notification No. 12/2017- CTR dated 28.06.2017 Sr. No. 66.

1. Please guide whether all services cover preparation of NDA, IIT, PMT various competitive entrance exam etc. on additional consideration or these activities are taxable.

2. Whether extra classes provided by schools after school hours are taxable or exempted ?

3. Whether the supplies done by school other than education like sale of bus, furniture or other school articles are taxable under gst?

AI Summary

GST exemption for educational services may not cover separately charged extra coaching; scope depends on statutory definition and facts.
The forum debates whether extra coaching and optional courses supplied for additional consideration by a school fall within the GST exemption for services provided by an educational institution to its students, faculty and staff. One view treats such in house coaching as exempt; another ties exemption strictly to the statutory definition of educational institution and excludes services outside those specified types. Sale of goods and isolated commercial transactions are held taxable. Judicial authority has been cited that expansively includes allied campus services within the exemption.