July 7, 2017 5:08 PM

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Reports of education becoming expensive under GST unsubstantiated: Govt

Centre has denied reports of education becoming expensive under GST. Finance Ministry said, such reports are completely unsubstantiated and there has been no change in taxability of educational and other services on account of GST. It also said, there is no change in any object relating to education in the GST era, except to reduce tax rate on certain items of education such as school bags. The Ministry said, transportation of students, faculty and staff services provided to an educational institution are exempt from GST. Similarly, catering, including any mid-day meal scheme sponsored by the Centre, State Government or Union territory, to an educational institution providing education upto higher secondary school or equivalent, are also exempt from GST. The Ministry also said, security, cleaning and housekeeping services performed in such educational institutions are also exempt from GST. Some of the input services like transport, canteen provided by private players to educational institutions were subject to service tax in pre-GST era and the same is continued in GST regime.

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