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Tax on export of Educational services (SAC 999293)

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Saurabh Dubey

Accountant

68 Points Posted on 06 June 2023

Dear All,

I have a query about tax on export of online education services that can i charge GST on it, if yes then which law is applicable? If No then which law is applicable?

Please confirm

Replies (2)

Quick Summary

This discussion clarifies the tax implications for exporting educational services, specifically online education (SAC 999293). While services from traditional educational institutions are often exempt, online education services typically do not fall under this definition and are subject to an 18% GST rate. However, when these services are provided to recipients outside India, they are considered exports and are therefore taxed at a 0% GST rate.

CA Mohd Firoz Khan

Chartered Accountant

108 Points Posted on 06 June 2023

Dear Saurabh

1- Services provided by an educational institution is exempted. (Mega Exemption -Notification Number ST-25/2012 dated 20th June 2012)

2- Under GST, “educational institution” is defined as an institution providing services by way of:

Pre-school education and education up to higher secondary school or equivalent;
Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
Education as a part of an approved vocational education course;

3- Conclusion :

Online education services not fall under the definition of educational institution. Hence, they are taxable at 18% GST rate.

If They provide service to person outside India, Place of service would be the location of the recipient of service and it will be fall under export service. Hence, they are taxable at 0% GST rate.