Exemptions in negative list

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Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2013 Sir,

My question is consultancy service in education is exempt or not

Amol S Joglekar

Amol S Joglekar (Expert)
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10 January 2013 No, it is not exempt per se

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2013 Sir

But According to negative list support services in formal education is exempted, and the company in which I am working provide services in distance education and abroad. So is it exempted

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2024 The tax exemptions related to services in education, particularly in the context of service tax (now GST) in India, are defined under specific provisions. Here’s a breakdown based on your query:

### Service Tax (Prior to GST Regime):

1. **Negative List of Services**: Under the Service Tax regime, certain services were listed in the negative list, meaning they were exempt from service tax. Support services in formal education were indeed exempt under the negative list.

2. **Consultancy Services in Education**: Consultancy services related to education were generally taxable under the Service Tax regime unless they fell under specific exemptions or abatements.

### GST Regime:

1. **Exemptions under GST**: Under GST (Goods and Services Tax), exemptions are provided based on specific notifications and schedules. Services related to education can be exempt under GST if they fall under specific categories mentioned in the exemption notifications.

2. **Distance Education and Abroad**: Services provided in distance education or education services provided abroad may have different tax implications under GST:
- **Export of Services**: If services are provided outside India (export of services), they may qualify for zero-rated GST, meaning no GST is charged but input tax credits can be claimed.
- **Specific Exemptions**: Some educational services, including those provided in formal education or recognized institutions, may be exempt under specific notifications.

### Consultancy Services in Education:

- **Nature of Service**: If the consultancy services provided by your company in the field of education are related to support services in formal education, they may indeed be exempt under the applicable notifications.

- **Distance Education**: Services provided in distance education or education services provided abroad would need to be evaluated against the specific GST provisions and exemptions applicable to such scenarios.

### Conclusion:

To determine if consultancy services in education provided by your company are exempt under GST, you should:
- Check the relevant GST exemption notifications related to education services.
- Evaluate whether the services provided fall under the exemptions for support services in formal education or other relevant categories.
- Consider the nature of the consultancy services provided and whether they align with the criteria set forth in the exemption notifications.

For precise guidance tailored to your company’s situation, it’s recommended to consult with a qualified tax professional or GST consultant who can analyze your specific services and ensure compliance with GST regulations. They can provide clarity on whether your consultancy services in education qualify for exemption under the current GST regime.

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