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CA Intermediate · Taxation · Exemptions from GST

Shree Vidya Trust runs a recognised school in Pune offering pre-school to Class 12 education. During the month it collected tuition fees of Rs 6,00,000 from students and Rs 80,000 from a private coaching company for letting out its auditorium on rent for coaching seminars. Assuming no other receipts, which of the following is correct regarding GST on these receipts?

Tuition fees from students of a school up to higher secondary are exempt from GST, but renting out the auditorium to a coaching company is a service to a non-student and is taxable, since the educational institution exemption covers only services to students, faculty and staff.

  1. ATuition fees are exempt as services by an educational institution to students; the auditorium rent is not covered by that entry and is taxable unless separately exemptCorrect
  2. BBoth receipts are exempt because the trust is an educational institution
  3. CTuition fees are taxable because the trust is not a Government body, while rent is exempt
  4. DBoth receipts are taxable because exemption applies only to Government schools

Explanation

Services provided by an educational institution to its students, faculty and staff, covering pre-school up to higher secondary, are exempt. Letting out the auditorium is a service to a coaching company, not to students, so the exemption does not apply to it. Option B wrongly extends the exemption to all receipts.

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