we have registered a Section 8 company. We are running a day care education centre for the children of staff members in a university. The university has given us the space without rent and in return, they pay the salary of 3 teachers and a little money as a management fee to our Section 8. So will this come under the purview of GST or not?
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GST Applicable for Section 8
Replies (1)
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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.
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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.
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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.
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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.
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