GST Applicable for Section 8

Section 8 companies are included in the definition of taxable persons under GST when they engage in economic activities like providing goods or services for a fee or consideration.

If the Section 8 company receives payment (like salary reimbursement and management fees) from the university for services rendered (daycare/education), this would likely be treated as a supply of services liable to GST.

The exemption for educational institutions under GST typically applies to recognized educational institutions providing educational services, but daycare centers run by Section 8 companies for consideration (management fees, salaries paid by the university as consideration) may be outside this exemption.

The Section 8 company must assess if its aggregate turnover from such activities exceeds the GST registration threshold (₹20 lakhs in most states), which will require GST registration and compliance.