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No GST on boarding fees in students’ hostels

Staff reporter, New Delhi
14/07/2017   0 Comments

Terming as “not true” the reports that GST at 18% will be levied on annual subscription or fees charged for lodging in hostels, the Government has said that there is no change in tax liability relating to education and related services in the GST era, except reduction in tax rate on certain items of education.
 
It may be mentioned that services provided by an educational institution to students, faculty and staff are fully exempt. Educational institution has been defined as an institution imparting pre-school education and education up to higher secondary school or equivalent, education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force, education as a part of an approved vocational education course.
 
“Thus, services of lodging and boarding in hostels provided by such educational institutions which are providing pre-school education and education up to higher secondary school or equivalent  or education leading to a qualification recognised by law, are fully exempt from GST. Annual subscription/fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST,” a press statement issued by the Government said.

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