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Education is exempt under GST, says government

New Delhi: Clearing the doubts that -education will also become expensive after GST-the central government on Friday said services provided by an educational institution to students, faculty and staff were exempt under GST.

The centre has dismissed the claims and clarified that these reports don’t have any base. “Such reports that education will become expensive under GST are completely unsubstantiated. In fact, there is no change made on any subject relating to education in the GST era, except to reduce the tax rate on certain items of education such as school bags,” the finance ministry said in a statement, as per a report by HT.

Pre-school education and education up to higher secondary school or equivalent education as part of a curriculum for obtaining a qualification and vocational training are exempt from GST. Moreover, the transportation and other services such as canteen are also freed from the GST regime.

“Transportation of students, faculty and staff services provided to an educational institution (providing pre-school education and education up to higher secondary school or equivalent) are exempt from GST. Similarly, catering, including any mid-day meals scheme sponsored by the central government, state government or union territory, to an educational institution providing education up to higher secondary school or equivalent, are also exempt from GST,” the statement said.

“Further, security or cleaning or housekeeping services performed in such educational institutions are also exempt from GST. Services relating to admission to, or conducting of examination by, such institutions, up to higher secondary, too are exempt from GST,” it added.