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Prakhar Softech Services Ltd.

CHAPTER - 6 - EDUCATION & TRAINING SERVICES

EXEMPTED SERVICE

S.No.	DESCRIPTION OF SERVICE	Rate of Tax (%)
S.No.	DESCRIPTION OF SERVICE	CGST	SGST	IGST
(1)	(2)	(3)	(4)	(5)
1.	Heading 9966 or Heading 9973 Services by way of giving on hire – (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (b) to a goods transport agency, a means of transportation of goods. ¹[(c) motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent.] [S.No.22 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
2.	⁴[Heading 9992 or Heading 9963] Services provided- (a) by an educational institution to its students, faculty and staff; ¹[(aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee;] (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; ²[***] ¹[(v) supply of online educational journals or periodicals:] Provided that nothing contained in ³[sub-items (i), (ii) and (iii) of item (b)] shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. ¹[Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of,- (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course.] [S.No.66 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
3.	Heading 9992 Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme:- (a) two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management; (b) fellow programme in Management; (c) five year integrated programme in Management. [S.No.67 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
4.	Heading 9992 or Heading 9983 or Heading 9991 Any services provided by,- (a) the National Skill Development Corporation set up by the Government of India; (b) a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to- (i) the National Skill Development Programme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation. [S.No.69 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
5.	Heading 9983 or Heading 9985 or Heading 9992 Services of assessing bodies empanelled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under the Skill Development Initiative Scheme. [S.No.70 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
6.	Heading 9992 Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana implemented by the Ministry of Rural Development, Government of India by way of offering skill or vocational training courses certified by the National Council for Vocational Training. [S.No.71 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
7.	Heading 9992 Services provided to the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Government, Union territory administration. [S.No.72 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
8.	⁵[Heading 9993 Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961).] [S.No.74A of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil
9.	Heading 9996 Services by way of training or coaching in recreational activities relating to- (a) arts or culture, or (b) sports by charitable entities registered under section 12AA of the Income-tax Act. [S.No.80 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017]	Nil	Nil	Nil

1.	Inserted by Noti. No.02/2018-CT (Rate) (S.No.173) dated 25-01-2018
2.	The Word "upto higher secondary" deleted by Noti. No.01/2018-CT (Rate) (S.No.173) dated 25-01-2018
3.	Subs. by Noti. No.02/2018-CT (Rate) (S.No.173) dated 25-01-2018 for "entry (b)"
4.	Subs. by Noti.28/2018-CT (Rate) (S.No.326) dated 31.12.2018 w.e.f. 01.01.2019 for "Heading 9992"
5.	Inserted by Noti.28/2018-CT (Rate) (S.No.326) dated 31.12.2018 w.e.f. 01.01.2019

TAXABLE SERVICE

S.No.	DESCRIPTION OF TAXABLE SERVICE	Rate of Tax (%)
S.No.	DESCRIPTION OF TAXABLE SERVICE	CGST	SGST	IGST
(1)	(2)	(3)	(4)	(5)
1.	Heading 9992 Education services. [S.No.30 of Noti. No.11/2017-CT (Rate)] Dated: 28.06.2017]	9	9	18

IMPORTANT DEFINITIONS

1. “approved vocational education course” means, -

(i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or

(ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship; [para 2(h) of Noti. No.12/2017-CT (Rate) dated 28.06.2017]

2. “educational institution” means an institution providing services by way of,-

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course; [para 2(y) of Noti. No.12/2017-CT (Rate) dated 28.06.2017]

IMPORTANT POINTS

1. Services provided to an educational institution is exempted only in case of services provided to pre-school education and education up to higher secondry school or equivalent.

2. Services provided by an educational institution to its students, faculty and staff is exempted.

3. Catering services provided by the educational institution to students, faculty and staff is exempted from tax, where as if the same service is provided by a contractor in educational institution it shall be taxable @ 5% [See Circular No.28/02/2018 dated 18.01.2018]

4. Some practical examples on taxability of education services.

S.No.	Issues	Solution
1.	Postal Coaching
2.	Running training centre in relation to art classes	Exempt vide entry 80 of Notification No.12/2017-CT (Rate)
3.	Coaching for prepration of Pre-medical test	Taxable
4.	Training in recreational activities relating to culture	Exempt vide entry 80 of Notification No.12/2017-CT (Rate)
5.	Renting of immovable property to higher secondary school	Taxable
6.	Renting of immovable property to commercial coaching centre	Taxable
7.	Conduct of examination of ICAI	Taxable
8.	Placement services provided to an Engineering College	Taxable
9.	Security services provided to pre-nursery school	Exempt vide entry 66 of Notification No.12/2017-CT (Rate)
10.	Transportation services provided to students of Higher Secondary School	Exempt vide entry 66 of Notification No.12/2017-CT (Rate)
11.	Outdoor catering services provided to educational institutions running approved vocational course	Taxable
12.	House keeping and cleaning services to a degree college	Taxable
13.	Campus recruitment fees	Taxable
14.	Personality development institutes	Taxable
15.	Services provided by Boarding school	Boarding schools provide education services alongwith residence & food-This is a bundled service in which education is principal service since principal service is exempted hence entire boarding school service is exempted.

5. It is clarified vide noti. no.14/2018-CT(Rate) dated 26.07.2018 w.e.f. 27.07.2018 by explanation (iv) that “for removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students”.

6. As per explanation 1 of S.No.7(i) of notification no.11/2017-CT(Rate) dated 28.06.2017 w.e.f. 27.07.2018 supply of food includes supply of food at a canteen, mess, cafeteria or dining space of an institution such as a school, college, hospital, industrial unit, office, by such institution or by any other person based on a contractual arrangement with such institution for such supply, provided that such supply is not event based or occasional.

7. Regarding tax implication on services provided by private ITIs refer circular no.55/29/2018 dated 10.08.2018