GST from Coaching: Pankaj Chaudhary, minister of state in the Ministry of Finance, disclosed that the government garnered Rs 4,792.4 crores from Goods and Services Tax (GST) applied to education services during the financial year 2023-24. These services are non-exempt under GST, with a 18% tax rate levied on them under Service Accounting Code (SAC) 9992.
Answering a question raised Dr. D Ravi Kumar, Chaudhury said the data for GST collected on education services, which are not exempted, such as commercial training and coaching, for the past three years is more than Rs 10,000 crore in three years.
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The breakup shared by the minister is:
Financial year GST collected in cash (for SAC 9992)
FY 2021-22 Rs 2859 crore
FY 2022-23 Rs 4243 crore
FY 2023-24 Rs 4,792.4 crore
The Minister further said GST rates and exemptions are prescribed on the basis of the recommendations of the GST Council, which is a constitutional body comprising members from both the Union and State/UT Governments.
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Services provided by educational institutions to its students, faculty, and staff are exempt from GST. ‘Educational institution’ has been defined under GST exemption notification to mean an institution providing services by way of:
The exemption applies to the following educational services:
- Pre-school education and education up to higher secondary school or its equivalent;
- Education included in a curriculum for acquiring a qualification recognized by current laws;
- Education within an approved vocational education course.
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Additionally, the exemption extends to services offered to schools up to the higher secondary level such as:
- Transportation services for students, faculty, and staff;
- Catering services, including government-sponsored mid-day meals;
- Security, cleaning, and housekeeping services.
Affiliation services offered by Central or State Educational Boards, Councils, or similar bodies to Government schools have been granted GST exemption effective October 10, 2024. This recommendation was made by the GST Council during its 54th meeting.
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