# Educational Institution Exemptions – Specific Scenarios

This lesson covers CBIC clarifications on tricky educational institution exemption scenarios under GST.

## 1. Food/Catering Services

### Supply of food in Anganwadis and Schools

Anganwadi qualifies as an educational institution
Under Entry 66(b)(ii): catering services to educational institutions, including mid-day meals, are exempt
Exemption applies irrespective of funding source (government grants or corporate donations)
Serving food to anganwadis (govt-sponsored or corporately funded) → EXEMPT

## 2. Fees Charged by Educational Institutions

Type of fee	Treatment
Entrance examination fee	Exempt
Admission fee	Exempt
Migration certificate issuance	Exempt
Eligibility certificate issuance	Exempt
Fees from prospective employers for campus recruitment	TAXABLE

## 3. Specialized Training Institutions

### Maritime Training Institutes

Courses approved by Director General of Shipping under Merchant Shipping Act, 1958 and Merchant Shipping (STCW) Rules, 2014
Treated as educational institutions → courses are exempt (subject to specified conditions)

### Flying Training Organizations (FTOs)

Approved by DGCA under Aircraft Act, 1934
Course completion certificates are mandatory
Approved flying training courses by DGCA-approved FTOs → exempt as services by educational institutions to students

## 4. Input/Output Services – Tabular Summary

Type of Institution	Exempt Input Services	Exempt Output Services
Pre-school to higher secondary	(i) Transportation of students/faculty/staff; (ii) Catering incl. mid-day meals; (iii) Security/cleaning/housekeeping within institution; (iv) Services relating to admission/exam	To students, faculty, staff; conduct of entrance exam against entrance fee
Institution providing education for recognised qualification	(i) Services relating to admission/exam; (ii) Supply of online educational journals/periodicals	Same as above
Approved vocational education	Services relating to admission/exam	Same as above

KEY: Pre-schools do NOT get exemption on online journals (only for higher education institutions).

## 5. Affiliation Services – CBIC Clarification

### University to Colleges

Affiliation ensures infrastructure for courses/degrees
NOT related to student admission or examinations at affiliated colleges
Affiliation services by universities to constituent colleges = TAXABLE (not exempt)

### Educational Boards/Councils to Schools

Boards monitor infrastructure, finances, faculty strength
Affiliation services to schools = TAXABLE under GST
EXCEPTION (Entry 66A): Affiliation services by Central/State educational boards to Government Schools (established/owned/controlled by CG, SG, UT, local authority, governmental authority or government entity) → EXEMPT

## 6. ITC Position

If output services of an educational institution are exempt, ITC may not be available on input services
Only auxiliary education services in item (b) of Entry 66 (which may be outsourced) are exempt

Worked example

### Example 1

Example 1 – Online Journals to Pre-school: A pre-school in outskirts of Mumbai subscribed to online journals on child development & experiential learning. Treatment: Online educational journals provided to a pre-school are NOT exempt (exemption for online journals applies only to institutions providing education for recognised qualification, not pre-schools).

### Example 2

Example 2 – Transportation by SM Transporters: SM Transporters provided transportation services for students and faculty from their residences to Pathwheels School (a higher secondary school). Treatment: Transportation services for students and staff to a higher secondary school = EXEMPT input service.

### Example 3

Example 3 – Shiksha College Exam Services: Shiksha College conducts degree courses recognized by law. It paid honorarium to paper setters/examiners and availed printing services for half-yearly exams. Treatment: Services related to admission/examination (paper setters, examiners, printing) = EXEMPT.

### Example 4

Example 4 – Gyaani Public School Security & Housekeeping:

Within school campus for regular activities → EXEMPT
For school's Annual Day function OUTSIDE school campus → TAXABLE
Reason: Only services within school premises are exempt input services.

⚠️ Common exam mistakes

Treating food supplied to anganwadis as taxable because it's privately/corporately funded — funding source is irrelevant.
Treating campus recruitment fees from prospective employers as exempt — these are taxable.
Assuming all affiliation services are exempt — universities affiliating colleges & boards affiliating private schools are TAXABLE.
Applying online journal exemption to pre-schools — it is restricted to higher-education institutions.
Assuming all security/housekeeping for a school is exempt — only services rendered within school premises qualify.
Forgetting Entry 66A exception that affiliation to Government schools by boards is exempt.
Confusing 'governmental authority' definition with 'government entity' when applying Entry 66A.

Bare-Act text Entry 66 & 66A · Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 · click to expand

Entry 66 (Notification No. 12/2017-CT(R)): Services provided – (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; (b) to an educational institution, by way of – (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; (v) supply of online educational journals or periodicals... Entry 66A: Services provided by Central or State educational boards or Councils, or other similar bodies, by way of conduct of examination or affiliation to Government Schools.

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Educational Institution Exemptions - Specific Scenarios & Clarifications

Worked example

⚠️ Common exam mistakes