It
clarified that services provided by an educational institute to students,
faculty and staff are exempt from GST
Mumbai: Remaining true to its claim
of keeping education free from GST, the Finance Ministry on Thursday clarified
that there will be no GST levied on annual subscription/fees charges for
lodging in hostels under educational institutions.
Addressing
fake reports that claim 18 per cent GST will be levied on annual fee charged by
hostels, the ministry said, “There is no change in tax liability relating to
education and related services in the GST era, except reduction in tax rate on
certain items of education”.
The
ministry statement further clarified that services that an educational
institute provides to its students, faculty and staff are “fully exempt” from
GST.
It
further went on to define educational institution as one imparting “pre-school
education and education up to higher secondary school or equivalent or,
education as a part of a curriculum for obtaining a qualification recognised by
any law for the time being in force or, education as a part of an approved
vocational education course”.
Therefore,
the services of lodging in hostels provided by all such educational
institutions do not fall under the ambit of GST.
The
Finance Ministry and the GST Council have from the very start maintained that
education will not attract GST. Only some items that fall under the category of
education, like school bags have been taxed under GST.
The
ministry has been issuing a slew of clarifications to make citizens aware of
the new tax regime that has transformed the Indian taxation system.
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