GST on services provided to an engineering college relating to students admission

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We are a pvt ltd lompany and we are going to provide services relating to admission of students to an engineering college. Will we need to charge GST? If yes then what is the percentage ?

Replies (5)
Yes! your service not fall under the exemption service

Dear Mr. Inderjeet Saini,

As per the CBIC document (https://www.cbic.gov.in/resources//htdocs-cbec/gst/GST%20on%20Education%20Services_Web.pdf;jsessionid=FF8101CC5A9EA7E18685DDC5D0584BE8), it says NIL rate GST for services relating to admission. May I request you to check the second page of the above linked CBIC document? Please check Sub Point (IV) of Point (b) of the second page's table.  

It would be great to have your clarification on this as I am confused with the above-mentioned Sub Point (IV). 

Other than designated trades in private ITI , GST shall be payable . 

AS per my view , 

Services provided by a private Industrial Training Institutions for conduct of examination for entrance fees - exempt 

But you are not covered here . 

 

Dear Pallavi, Engineering college satisfies the definition of "Educational Institution" as per subpoint (ii) of definition of "Educational Institution". And as per subpoint (iv) of point (b) of Entry 66 of Notification No.12/2017 amended vide Notification No.02/2018 dated 25.01.2018, "NO NEED TO CHARGE GST on services relating to "admission to" provided TO an educational institution" Proviso mentioned in that point (b) is for sub points (i), (ii), (iii) and (v) only...... not for sub point (iv). CBIC document quoted by you got amended later vide Notification No.02/2018. Please refer that also. You will get a better view.

Notification 12/2017 CTR dated 26th June, 2017 exempts 

Services provided -

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

(aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee;]

Services provided -  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 Central Government, State Government or Union territory;

(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

Meaning of educational institution

Educational institution means an institution providing services by way of,-

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course; 

 

In light of the above legal provisions & analysis, there could be possible exemption available when services provided by a private limited company to educational institution by way of admission to, or conduct of examination by, such institution.

Please note that, the agreement or PO should be entered in the name of educational institution rather directly in the name of the students where exemption could be questioned.

 

Hope the above explanation provides clarity, please do revert for more clarity

Queriest can write to venkat @ hiregange.com 9620116162.


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