# Educational Services — Input Services Exemption Matrix [Entry 66(b)]

## Logic of the Exemption

Only auxiliary education services specifically listed in item (b) of Entry 66 (which may be outsourced) are exempt as inputs. Since output services are exempt, institutions generally cannot avail ITC on their inputs.

## Exemption Matrix by Type of Educational Institution

Input Service	Pre-school & up to Higher Secondary	Recognised Qualification (higher education)	Approved Vocational Education Course
Transportation of students, faculty and staff	✓	✗	✗
Catering (incl. CG/SG/UT-sponsored mid-day meals)	✓	✗	✗
Security / cleaning / housekeeping within the institution	✓	✗	✗
Services relating to admission to or conduct of examination	✓	✓	✓
Supply of online educational journals or periodicals	✗	✓	✗

## Exempt Output Services (recap)

Services to students, faculty and staff [Entry 66(a)]
Conduct of entrance examination against entrance fee [Entry 66(aa)]

## Affiliation Services

### Universities → Colleges

Affiliation ensures institutions meet infrastructure requirements to award degrees.
Not related to admission/examination at affiliated colleges.
CBIC clarification: Affiliation by universities to constituent colleges → Taxable.

### Central / State Education Boards / Councils → Schools

Boards monitor infrastructure, finances, faculty strength → affiliation.
Not related to admission/examination at schools.
CBIC clarification: Affiliation by boards/councils to schools → Taxable.
Exception — Entry 66A: Affiliation services by Central/State Educational Boards or Councils (or similar bodies) to Government Schools (established, owned/controlled by CG, SG, UT, local authority, governmental authority or government entity) → Exempt.

## Key Restrictions to Remember

First proviso to 66(b): Sub-items (i) transportation, (ii) catering, (iii) security/cleaning/housekeeping apply only to pre-school and up to higher secondary institutions.
Second proviso to 66(b): Sub-item (v) online educational journals/periodicals does NOT apply to:
Pre-school / up to higher secondary; or
Approved vocational education courses.

→ So online educational journals are exempt only when supplied to higher education institutions providing recognised qualifications (sub-clause (ii) institutions).

Worked example

### Example 1

Example 1: A pre-school in Mumbai subscribes to online journals on child development. → Taxable — sub-item (v) does not apply to pre-school/higher secondary institutions.

### Example 2

Example 2: SM Transporters transports students and faculty to Pathwheels School (a higher secondary school). → Exempt under Entry 66(b)(i).

### Example 3

Example 3: Shiksha College (conducts recognised-by-law degree courses) pays honorarium to paper setters/examiners and avails printing services for exams. → Exempt under Entry 66(b)(iv).

### Example 4

Example 4: Gyaani Public School hires Suvidha Services Ltd. for security and housekeeping within campus → Exempt. The same services for the school's Annual Day function held outside campus → Taxable (exemption is only for services performed in the institution).

### Example 5

Example 5: A university charges affiliation fees from a private college → Taxable. A State Education Board charges affiliation fees from a Government school → Exempt under Entry 66A.

⚠️ Common exam mistakes

Treating transportation/catering/security/housekeeping services to colleges and universities as exempt — they are exempt only for pre-school to higher secondary.
Treating supply of online educational journals to a pre-school or a vocational institution as exempt — only higher-education (recognised qualification) institutions get this exemption.
Treating security/housekeeping at an off-campus school event as exempt — the service must be performed in the educational institution.
Treating affiliation services by universities or boards as exempt — they are taxable (except affiliation by boards/councils to Government schools under Entry 66A).
Forgetting that since output services are exempt, ITC on inputs (where input is taxable) is generally not available.

Bare-Act text Entry 66(b) and Entry 66A · Notification No. 12/2017-CT(R) dated 28.06.2017 · click to expand

Entry 66A: Services of affiliation provided by a Central or State Educational Board or Council or any other similar body, by whatever name called, to a school established, owned or controlled by Central Government, State Government, Union Territory, local authority, Governmental authority or Government entity.

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Educational Services — Input Services & Affiliation (Entry 66(b) and Entry 66A)

Worked example

⚠️ Common exam mistakes