Regarding Exemption in GST

Respected sir/madam,

What is the exact meaning of "education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force" As per Definition 2(y) mentioned in notification 12/2017-CT Rate in under GST? I assumed this point is related to higher education studies and other certification based studies like CA. Should be Education institute is government institute like IIM,IIT for claiming exemption?? Other universities like bharathiyar university is also covered in exemption eligibility? Because they also offer Common degrees that got recognized across India. Addition to this the institute who conduct entrance exams for seat they only covered under this exemption as educational institute? thank you in advance.

Hi Mathan Kumar,

Great question! Let me clarify the phrase and how GST exemption applies under Notification No. 12/2017-CT (Rate).

Meaning of "education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force" (Definition 2(y)):

This phrase means education that is part of a formal curriculum leading to a qualification or degree recognized by law.
For example, degrees or diplomas recognized by law such as Bachelor’s, Master’s, PhD, engineering, medical, law degrees, etc.
The key is that the qualification should be recognized by an authority or law (like UGC, AICTE, Medical Council, Bar Council, etc.).

Does this apply only to government institutes like IIT, IIM?

No. The exemption is not limited to government institutions.
Private universities and colleges recognized by relevant regulatory bodies or established by law are also covered.
For example, Bharathiyar University and other recognized universities offering degrees are eligible for exemption, provided the course leads to a recognized qualification.

What about professional certifications like CA?

Professional courses like CA, CMA, CS are not covered under this exemption since they are certifications given by professional bodies, not a formal degree/diploma under law.
Services related to coaching or training for these certifications may not be exempt.

Are entrance exam conducting bodies covered?

No. Bodies that only conduct entrance exams or admission tests do not qualify as educational services under this exemption.
The exemption applies to actual education/training as part of a recognized curriculum, not just entrance test services.

Summary:

Exemption applies to education services that form part of a recognized formal curriculum leading to a degree/diploma recognized by law.
Applies to both government and private universities/colleges recognized by law.
Does not apply to professional certification courses like CA or entrance exam bodies.