Page 55 - CA Final GST

Badlani Classes

However, training given by private coaching institutes would not be covered as such
training does not lead to grant of a recognized qualification.
Renting of Immovable Property to educational institute : Taxable
Services provided by boarding schools- Exempt :
Boarding schools provide service of education coupled with dwelling units for residence
and food. It will be case of composite supply if charges for education and lodging and
boarding are inseparable. Since such services in case of boarding schools are bundled in
the ordinary course of business, hence, as per Section 8, bundle of services will be
treated as consisting entirely of principal supply being education. Since principal supply
is service of education and renting for residence (which are not taxable), hence, entire
bundle would not be taxable.
Services provided by International Schools : Exempt :
Services provided by international schools giving certifications like IB are equivalent to
education upto higher secondary school, hence they are exempt.
Educational Institutions providing non-recognized qualification with recognized
qualification courses- Separate services to be assessed separately :
Provision of dual qualification are two separate services as the curriculum and fees for
each of such qualifications are prescribed separately,. Service in respect of each
qualification would, therefore, be assessed separately.
➢ In case of Artificial Bundling If an artificial bundle of service is created by clubbing
two curses together, then by application of Section 8 it will be a case of mixed supply
and it is liable to be treated as a course which attracts the highest liability of GST.
➢ In case of Natural Bundling. However, incidental auxiliary courses provided by way
of hobby classes or extra-curricular activities in furtherance of overall well being will
be an example of naturally bundled course and since Principal supply is exempt, the
entire bundle will be exempt.
Private tuitions : Taxable :
Private tuitions are not covered in the entry relating to education and hence the same
shall be liable for GST. However, private tutors an avail the benefit of threshold
exemption.
Placement services provided to educational institutions – Taxable
These services do not fall in the category of exempt services provided to educational
institutions as these services are for securing job placements for the students. Hence,
they are leviable to GST.
Campus Recruitment fees- Taxable :
Fees charged by educational institutions in relation to campus recruitment from
prospective employers are liable for GST as such services are not covered in exemption.
Institutes preparing students for Competitive Exams-Taxable :

Institutes that prepare applicants for Board examinations and competitive exams like
entrance examinations for Indian Institute of Technology. Joint Entrance
Examinations/Pre Medical Tests, Civil Services exams, etc. are chargeable to GST.

Postal coaching covered- Taxable :

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Central Goods & Services Tax Act, 2017