GST Impact on Schools
School of Educators team simplifies the GST implication on schools on its services and products purchased/delivered by schools. If the schools have a store ,selling school supplies they have to register themselves under GST. Many essential services delivered by schools are in exempted list.
GST : Frequently Asked Questions by Schools on GST
i) What is the date from which the Goods and Services Tax (GST) becomes effective?
As of now, the Government has affirmed that GST will be implemented 1 July 2017 onwards.
ii) What is CGST, SGST, UTGST and IGST? What will be the tax charged in respect of the Goods and Services supplied to our institution?
The Goods and Services Tax will subsume 15 existing taxes levied by the Centre and the states. Under the proposed dual GST framework, both the centre and the respective state/union territory will simultaneously levy tax on the supply of goods and services.
- In case of taxable supply of goods and/or services within a state or union territory, i.e intra-state supplies, the Centre will levy a tax called the Central GST (CGST) and the respective state/UT will levy a tax called the state GST (SGST)/Union Territory GST (UTGST).
- In the case of taxable supply of goods and/or services across state and/or union territories, i.e inter-state supplies, a tax called the Integrated GST (IGST) will be levied by the Centre.
Based on the type of supply, the tax charged by us will be CGST plus SGST in the case of intra-state supplies, and IGST in the case of intra-state supplies.
iii) Since we are an educational institution, are the goods and services supplied to us by any company, exempted under GST?
Following is the table for the services / products used / given by/to the schools.
|Sl. No.||Particulars||Tax under GST|
|1||Computer systems, laboratory kits and other related products||
18% – 28%
|2||Transfer of e-learning content||18%|
|3||Technical support services, online ERP solution (Next ERP) and related services, and e-Learning Coordinator (ELC) services||
|4.||Brochures, leaflets and similar printed matter, whether or not in single sheets
|6.||Exercise books and note books||12%|
|8.||Transportation of students, faculty and staff||NIL|
|9.||Catering, including any mid-day meal scheme, sponsored by the Government||NIL|
|10.||Security, cleaning or house-keeping services performed in such educational institutions||NIL|
|11.||Services relating to admission or conducting of examination by such institutions up to the higher secondary level||NIL|
|12.||Computer Printers n CCTV||18%|
|13||Iron or steel furniture||18%|
|17||1. Sports Goods other than point 2
2. Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter; swimming pools and paddling
iv) Do we have to pay GST on goods and services supplied to us before the GST came into effect but whose invoice periods ends only after the GST comes into effect?
GST will not be applicable on the supply of goods and/or services where tax is leviable under the existing law. Hence, please be informed that there will not be any change in the tax liability in respect of goods solo and invoices already raised before GST start date but payment pending including hardware instalments not due.
v) Are schools run by defence establishments (Army, Air Force, Navy, etc) exempted from GST? Similarly, is there any exemption for missionary or non-profit schools?
The term ‘person’ under GST rules includes proprietorship and partnership, firm, Hindu Undivided Family, Company, LLP, Society, People, an AOP/BOI, any enterprise or government organisation, body corporate incorporated under laws of a foreign country co-operative exemption under current GST laws for any such entity. However, educational institutions are provided exemption with respect to services mentioned above.
vi) Where can we find more details on GST?
For more details regarding GST, you may visit the CBEC website:
School of Educators
Reference : Next Education