How GST applicable on services?
The government has imposed GST on the services in the same rate structure as levied on the goods. GST on services comprises of 5%, 12%, 18%, and 28%. However, some of the services are also categorized under the NIL rate of GST.
Sr. No. 66 of exemption notification No. 12/2017 – Central tax provides that the educational institute’s services are exempt from GST. Hence, GST on educational institutes will be taxed at “NIL” rate under GST.
Meaning of educational institute as per GST
As per GST, “educational institution” is defined as an institution that provides services by way of:
• Pre-school and education up to higher secondary school or equivalent;
• Education as a part of a curriculum for obtaining a qualification recognized by any law as in force;
• Education institute includes an approved vocational education course;
Threshold of GST on services
The GST council has specified the threshold limits for the service providers as below:
• For normal taxpayers – If the aggregate turnover exceeds Rs. 20 lakh
• For special category states* – If the aggregate turnover exceeds Rs. 10 lakh
* Special category states (North-eastern) include Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand.
Rate of GST on coaching fees
Coaching classes doesn’t come under the purview of the definition of “Educational Institute” and have not any specific curriculum recognized by the law. Therefore, the coaching classes are ruled out from notification 12/2017 – Central Tax and chargeable to GST.
GST would be payable by the coaching classes at the rate of 18% on the coaching fees collected by the students (@9% under the CGST Act and @9% under the SGST Act).
Also Read : GST Registration in Pune, Company Registration in Pune, GST on coaching classes news
