# Educational Services — Entry 66 (Output Services)
## Exemption — Output Side
Services provided by an educational institution to its students, faculty and staff, and services by way of conduct of entrance examination against consideration in the form of entrance fee, are exempt.
## Meaning of 'Educational Institution'
An institution providing services by way of:
(i) Pre-school education and education up to higher secondary school or equivalent;
(ii) Education as part of a curriculum for obtaining a qualification recognised by any law for the time being in force (in India);
(iii) Education as part of an approved vocational education course.
## Analysis of Sub-clause (ii)
| Education provided | Covered? | Reason |
|---|---|---|
| Degree courses by colleges/universities | ✓ | Leads to qualification recognised by law |
| Training by private coaching institutes | ✗ | Doesn't lead to a recognised qualification |
| Course in India for qualification recognised by a foreign law | ✗ | Only Indian law-recognised qualifications covered |
## Analysis of Sub-clause (iii) — Approved Vocational Education Course
Means:
1. A course run by an ITI / ITC affiliated to NCVET or SCVT in designated trades notified under the Apprentices Act, 1961; OR
2. A Modular Employable Skill Course approved by NCVET, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship.
- Designated trade — any trade/occupation/subject in engineering, non-engineering, technology or vocational field notified by the Central Government under the Apprentices Act, 1961.
## Specific Institutions — Treatment
### Private ITIs
- Educational institutions only for designated trades under Apprentices Act, 1961.
- Designated trade services → Exempt; non-designated → Taxable.
- Entrance exams for designated trades → Exempt.
- Services provided to private ITIs for admission/exams in designated trades → Exempt.
- Non-designated trades — services by/to ITI → Taxable.
### Government ITIs
- Services to individual trainees → exempt under Entry 6 (CG/SG services to individuals).
- Exemption covers both vocational training and examinations conducted.
### Unrecognised institutions / Coaching centres
- Not educational institutions → no exemption.
- E.g., 'Super Minds' coaching for IBPS PO → not an educational institution.
### Schools up to Higher Secondary
- Output services + boarding/lodging charges → Exempt.
- Boarding schools: composite supply where education is the predominant element → entire consideration exempt.
### Dual Qualification (recognised + unrecognised)
- Separate fees / curriculum → assessed separately; recognised exempt, unrecognised taxable.
- Clubbed fees → mixed supply, taxable at highest rate.
### Incidental Auxiliary Services
- Hobby classes / extracurricular activities naturally bundled with education → composite supply → exempt.
- Separately billed → artificial bundle → mixed supply → taxable.
### IIMs
- Long-duration (≥1 year, diploma/degree) → Exempt.
- Short-duration (<1 year, participation certificate) → Taxable.
### Conduct of Examinations
- Any authority/board/body set up by CG/SG (including NTA) conducting entrance exams for admission to educational institutions → deemed educational institutions for this limited purpose. Their services → Exempt.
### Central / State Education Boards
- Deemed educational institutions only for conducting examinations.
- Conduct of examinations (incl. entrance exams) → Exempt under Entry 66(aa).
- Related input services (online testing, result publication, printing admit cards, question papers) → Exempt under Entry 66(b)(iv).
- Accreditation/registration fees (e.g., FMGE screening test fee) → Taxable.
### Food in Mess / Canteen
- Catering by educational institution to its own students/faculty/staff → Exempt.
- Outdoor catering provided to an educational institution:
- To pre-school / up to higher secondary → Exempt (under Entry 66(b)(ii))
- To others → Taxable.
### Anganwadis & School Mid-day Meals
- Catering services to anganwadis/schools, including mid-day meals → Exempt (irrespective of funding source — govt grants or corporate donations).
### Other Fees
- Entrance fee, fee for admission, issuance of migration/eligibility certificates → Exempt.
- Fees from prospective employers for campus recruitments → Taxable.
### Maritime Courses (DG Shipping approved)
- Maritime Training Institutes approved by DG Shipping under Merchant Shipping Act, 1958 and STCW Rules, 2014 → Educational institutions → courses Exempt.
### Flying Training Organisations (DGCA approved)
- DGCA-approved FTOs whose courses require completion certificates under Aircraft Act, 1934 → Educational institutions → services to students Exempt.