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CA Intermediate · Taxation · Exemptions from GST

Sharda Vidya Mandir, a registered charitable trust in Pune, runs a recognised school providing pre-school to higher secondary education. During the month it collected tuition fees of Rs 8,00,000 from students and Rs 60,000 as fees for a school-run optional coaching programme for a private competitive exam. Which statement about GST on these receipts is correct?

Tuition fees from students of a recognised school up to higher secondary are exempt from GST as services by an educational institution. Coaching for a private competitive exam is not part of the recognised curriculum, so that fee stays taxable. Charitable status alone does not exempt every receipt.

  1. ABoth receipts are exempt because the trust is a charitable institution
  2. BTuition fees are exempt as services by an educational institution to its students; the coaching fee for the private exam is not covered by that exemptionCorrect
  3. CTuition fees are taxable but the coaching fee is exempt
  4. DBoth receipts are taxable at 18%

Explanation

Services provided by an educational institution to its students (pre-school up to higher secondary) are exempt. Optional coaching for a private competitive exam is not part of the curriculum leading to a recognised qualification, so it is outside the exemption. Option 0 is wrong because the exemption depends on the nature of the service, not on the trust status.

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