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CA Intermediate · Taxation · Exemptions from GST

A registered educational institution, Vidya Sagar School, Nagpur, provides the following: (a) pre-school to higher secondary education to students, (b) transportation of students to school by a school bus. Which is correct?

Both are exempt. Services provided by an educational institution to its students, such as pre-school to higher secondary education and transportation of students by the school, fall under the exemption, and no fee ceiling applies.

  1. ABoth are taxable
  2. BEducation services are exempt; student transport by the school's own bus is also exempt as a service provided by the school to its studentsCorrect
  3. COnly transport is exempt
  4. DEducation is taxable if fees exceed Rs 1,00,000

Explanation

Services provided by an educational institution to its students, faculty and staff are exempt, covering education up to higher secondary and ancillary services such as transport. No fee-limit applies to this exemption. Hence both are exempt.

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