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Gst in trusts - education

ARUN KUMAR M (BUSINESS) (159 Points)

09 June 2017

Dear All Please clarify whether INPUT TAX CREDIT can be claimed in the following situation. A trust which operates an educational Institution having more than 1000 students and fees for an year comes around 6 crores. They are having exception as no GST for education sector. The same trust is having input tax for various things they are buying and for services they are getting. What is the rule for input tax credit for the same? I want to know whether such input tax never be claimed?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160574 Points)
Replied 09 June 2017

"They are having exception as no GST for education sector. "

When there is no output GST liability, where from you wish to adjust input credit?

ARUN KUMAR M (BUSINESS) (159 Points)
Replied 10 June 2017

Sir,

It says educational sector is exempted from GST. I want to know is there any draft rule or circular explaining the same? Even though education sector is exempted, there are ways in which output tax may be created especially through restaurants/canteens of residential hostel of Schools. I would like to get the details of exemption to know how exemptions are defined in the act.

Thank you sir.

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 10 June 2017

Services provided,‑

(a) by an educational institution to its students, faculty and staff;

(b) to an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Government;

(iii) security or cleaning or house-keeping services performed in such educational institution;

(iv)services relating to admission to, or conduct of examination by, such institution;

up to higher secondary.

Provided that nothing contained in clause (b) of this entry shall apply to an educational institution other than an institution providing services by way of pre- school education and education up to higher secondary school or equivalent

-further if u make any taxable supply with exempt services, then also only prorata itc would be there. do proper calculation before taking decision

Padmaja CA (proprietor) (398 Points)
Replied 05 September 2017

Dear Preeti Mam

I have another doubt , educational Institutions conducted exams for out siders like NEET exams, Postal Exams ectc,and get some profit, for that what is the GST code for register in GST Portal in Goods and services

Please Clarify, Thanku