Scope of GST exemption for education narrowed, risking taxation of private institutions and added multi state compliance burdens.
The proposed Model GST confines exemption to education supplied by statutory or substantially government owned bodies and to specified educational activities; consequently, private and charitable educational institutions currently exempt under service tax would become taxable and face increased costs and multi state registration and return filing obligations, while notification based exemptions would not remove the underlying GST compliance burden. (AI Summary)

Works contract definition under GST raises classification uncertainty between works contract and composite supply for mixed goods and services contracts.
The Revised Model GST Law narrows the works contract definition by omitting movable property and defines works contract as involving transfer of property in goods, while separately including immovable property. This creates uncertainty whether repair and maintenance of movable items fall within works contracts or must be treated under the composite supply framework, where tax depends on identifying the principal supply. The distinction affects whether the entire contract is treated as a service under Schedule II or subject to composite-supply valuation, raising compliance and litigation risks. (AI Summary)