GST ON EDUCATIONAL SERVICE

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Charitable trusts running government-approved vocational courses affiliated with universities may be exempt from Goods and Services Tax (GST). The exemption hinges on the institution qualifying as an 'educational institution' under specific tax notifications. Key requirements include registration under Section 12AA of the Income Tax Act and government approval for the vocational course through recognised bodies.

Hemkumar

Hemkumar

(Querist)

12 September 2025 A charitable trust has started Diploma Course afflicted with Government University, which is vocational course whether trust is liable to pay GST on fees collected from students ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 September 2025 GST Exemption Criteria
The exemption applies if the charitable trust is running an institution that qualifies as an "educational institution" under Notification No. 12/2017-Central Tax (Rate).

Educational institutions providing education as part of a curriculum for obtaining a qualification recognized by law, or as an approved vocational educational course, are generally exempt from GST.

The trust must be registered under Section 12AA of the Income Tax Act and the course should have government approval, either through UGC, NCVT, SCVT, or similar statutory bodies.

Thus, If the vocational course is approved by government agencies, such as NSDC or is affiliated with government bodies (e.g., State or Central Vocational Councils), it is typically exempt from GST.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 September 2025 Good Luck...

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