GST rate applicable on Transportation fees from Students

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This discussion clarifies the GST implications for businesses providing student transportation services. Even if payment is received directly from students rather than the school, these services are generally exempt from GST. The exemption's purpose is to support educational activities, and the core service provided is to students in relation to their schooling.

Swati Uniyal

Swati Uniyal (Querist)

09 August 2020 We are running a business of transportation of school students. However we do not receive any consideration from school nor we raise any invoice on school. Entire consideration is received from school students directly. Now my question is whether these services is taxable or exempt?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 August 2020 These services are exempt from GST irrespective of from whom payment received.

Lekhraj sood

Lekhraj sood (Expert)

09 August 2020 Services of transportation provided to educational institution is exempted from levy of GST. In this case the services are provided to students and consideration also paid by students,and not the educational institution.There may be some difference of opinion but the very purpose of this exemption is to exempt this service.So the substance is serving the objective of services for school education.You may have agreement with school where it is mentioned that the transportation charges should be collected directly from students.This is to have your case stronger in case the department objects later on.

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