GST on education

School/ Colleges 

Services provided by educational institutions have been kept outside from the Goods and Services Tax (GST). Here educational institutions mean any of the institutions providing services by way of:-

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

Thus

Conduct of degree courses by colleges, universities or institutions, which lead grant of qualifications recognized by law, would be covered. Training given by private coaching institutes would not be covered, as such, training does not lead to grant of a recognized qualification

Following Education Related Services are Exempt Under GST:

• Curriculum related or course materials,
• Assessment and examination fees,
• Student administrative services such as registration, printing of academic transcripts, issuing or replacement of student cards, late fee payments, administration of the library etc
• Excursion and field trips related to the course of study or part of curriculum requirement, except for food and accommodation supplied on those trips
• Services provided by educational institutions to students, faculty, and staff
• Transportation of students, faculty, and staff;
• Catering, including any mid-day meals scheme sponsored by the Government;
• Security or cleaning or house-keeping services performed in such educational institution;
• Services relating to admission to, or conduct of examination by, such institution; up to higher secondary
• Entrance exam fee is exempted from the GST
• Annual Hostel Fee. Lodging/Boarding charges

Following are NOT exempt from GST:

• Supplies provided by third parties like the musical instrument, computers, sports equipment,
• After school activities offered directly by third parties,
• Food and accommodation supplied for the excursion as described above,
• Uniform, stationery, and other non-academic related supplies

GST on Private Coaching

They need to mention their complete address, Registered name of their organization, Basic amount, 9% CGST and 9%SGST, date of receipt / invoice , Total amount, Name of student, Course that he is taking and Center where he will be given training.

ITC by coaching centres

a)        School bags, Stationery items, Study materials, Books purchases

b)      Various IT services, Marketing Services, Consultancy can avail them ITC.

Taxability of Perquisites

If the house is taken on rent by your employer, then cost is calculated as: Lease rent paid or payable by the employer or 15 percent of the salary, whichever is lower.

Interest that would have normally been payable on interest free or concessional loans of up to Rs  20,000 or loans made for medical treatment of specified diseases such as cancer, TB etc., are not chargeable to tax as a perquisite.

Expenses in relation to telephone or mobile phones, providing  laptop for work purposes are not treated as a perquisite, if used for official purposes.

Any gift or voucher received by an employee on ceremonial occasions or otherwise is regarded as a perquisite. These gifts are taxable fully if received in cash or exempt up to Rs 5,000 if received in kind such as gift cardsl. Therefore, if you have received a gift card of Rs 20,000 from your employer, then only Rs 5,000 will be exempt from tax. The balance of Rs 15,000 will be added to your salary and taxed accordingly.

Similarly, the cost of employees' stock options (ESOPs) or sweat equity shares issued will be calculated as: Fair market value of shares or securities on date of exercising option by the employee  minus amount paid by employee.

Deduction on entertainment allowance received by government employees only which is lower of:

i) Actual amount received

ii) One-fifth of the salary excluding any allowance, benefit or other perquisite

iii) Rs 5,000