GST for Providing NoteBooks, Uniforms, ECA, School Events

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This query is : Resolved

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This discussion clarifies GST applicability for charitable trust schools. While tuition fees are generally exempt, GST authorities are questioning the tax on fees collected for notebooks, uniforms, extracurricular activities (ECA), and school events. The core issue is whether these ancillary services, provided by the school on behalf of students, are taxable or fall under the charitable trust exemption.

Mohanraj J

Mohanraj J (Querist)

23 October 2024 Hello GST Experts
My friend is running CBSE higher sec school under Charitable Trust. He is collecting Tuition Fee, Notebooks Fee, Stationery Fee, Sports Day Fee, Children day celebrating fee from the students. He is providing all mentioned services to the children against collecting the fee. Here, GST authorities are asking to pay GST for all fee collection except tuition fee. Some articles were mentioned charitable trust running schools no need to pay GST.
Kindly clarify my question along with the notification

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 October 2024 Circular No. 27/1/2018: Clarifies that charitable trusts running educational institutions are exempt from GST on services provided in the course of education. This includes services like tuition fees, conduct of examinations, admission, and any other provision of education.
Fees collected for notebooks, stationery, sports day, children's day celebrations, and other activities are not specifically exempt under GST. These would be considered as supply of goods or services and are liable to GST.

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Mohanraj J

Mohanraj J (Querist)

24 October 2024 Dear Dhirajilal Bhai, thank you very much for your clarifications.
But whatever fee collecting from the students against Notebooks, Stationeries, Sandals, Uniforms and events like Sports Day, Annual Day, Yoga Day etc, the collected amount spent for these activities on behalf of the students by the school running by the charitable trusts. The students will not able to organize the events or pay the payment directly to the vendors. This question is raised by the Charitable Trust.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 October 2024 You may be correct with your views, but GST officers assess these services as taxable services; unless you give one receipt as tuition fees (which may include all these integrated services).

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