GST on educational institutions
I would like to put up the following to the Finance Minister.
I have been closely following the fresh measures taken on account of GST implemented. Among which ‘reverse mechanism’ finds an important place, as it was in the previous occasions in ‘ Excise Duty, Import-Export duty, etc.’ where Cenvat played a good role for industries/business people.
In the present GST era, all the taxes had been included and made under one ‘umbrella’. Fine.
The GST had been extended to others like ‘Trusts, Other NGOs, etc’ considering their nature of income & expenditure. As a common public, I am ‘for’ this action.
Against this implementation of GST on NGOs, Charitable Trusts, etc. (Non-profitable organisations) , FM would have received a lot of representations for ‘exemption of GST’ through many forums.
I would like to represent my issue:
I am working in an Educational institution, which is under a charitable trust, really non-profitable, only doing educational service (not business), registered under 12A under Income tax act.
Previously under Mega exemption in Service tax act, educational institution was exempted for :
Services provided to an institution : 1. Transportation of Students
2. Catering to students
3. Security services.
But now, after GST 2017, the exemption is restricted to Higher secondary school level and not for Colleges/Universities.
I could understand that open exemption can’t be given to NGOs. But a new provision can be given for applying for exemption through the GST jurisdictional authority (or) through some official not less than an IRS cadre, so that the IPC’s standard phrase can be sustained “ even if a culprit can be let out, but, no good man should get punished”.
I am not representing my organization, rather, I put forth this matter in the interest of the NGOs / Charitable organizations should be given some lenience to continue their service. more
I have been closely following the fresh measures taken on account of GST implemented. Among which ‘reverse mechanism’ finds an important place, as it was in the previous occasions in ‘ Excise Duty, Import-Export duty, etc.’ where Cenvat played a good role for industries/business people.
In the present GST era, all the taxes had been included and made under one ‘umbrella’. Fine.
The GST had been extended to others like ‘Trusts, Other NGOs, etc’ considering their nature of income & expenditure. As a common public, I am ‘for’ this action.
Against this implementation of GST on NGOs, Charitable Trusts, etc. (Non-profitable organisations) , FM would have received a lot of representations for ‘exemption of GST’ through many forums.
I would like to represent my issue:
I am working in an Educational institution, which is under a charitable trust, really non-profitable, only doing educational service (not business), registered under 12A under Income tax act.
Previously under Mega exemption in Service tax act, educational institution was exempted for :
Services provided to an institution : 1. Transportation of Students
2. Catering to students
3. Security services.
But now, after GST 2017, the exemption is restricted to Higher secondary school level and not for Colleges/Universities.
I could understand that open exemption can’t be given to NGOs. But a new provision can be given for applying for exemption through the GST jurisdictional authority (or) through some official not less than an IRS cadre, so that the IPC’s standard phrase can be sustained “ even if a culprit can be let out, but, no good man should get punished”.
I am not representing my organization, rather, I put forth this matter in the interest of the NGOs / Charitable organizations should be given some lenience to continue their service. more
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View all 7 comments Below 7 comments
This GST is to reduce the burden of taxes on corporates. The suggestion to exempt anyone is a bad word. This GST is just another step to abolish subsidies etc. more
Dec 01
BJP has tuned Indian public to INDIRECT INCOME THROUGH GST-INCOME BACKDOOR OF GOVTS. Why not DIRECT ASSET TAX ON NGOs and Institutes,as you may not be knowing,already mos of educational institutes are taking GST type student taxes as Training fees for private firms,with share-cut ratios. more
Nov 30
Private institutions under trust or society-like technical societies & Housing societies have to fall under scrutiny by states.States left governance and concentrating on votes for each election. more
Nov 30
They are investing in companies in private mode-Those take students for internship of 6-8 months and leave them to lurch. more
Nov 30
there need to be a comparison just because an ngo which is very rich, poor trusts who are not able to run day to day should not be deprived. We jave rich NGOs also we have very poor NGOs more
Nov 29
Any trust irrespective of whether business, service (pure service) should be considered for GST exemption if the concerned Trust or NGO are doing only free service and keeping accounts fair & transparent and audit done by govt agency CAG audit, becos I have seen many socalled NGO's hire their own CA's who indulge in money spinning business !! so if any educational trust is doing free service/providing free educaiton is only elegible for GST exemption and not all !!! more
Nov 29
TRUE. but who are offering susidised should not be neglected. to that extent of subsidy, can we not think of considering, of course going through all accounts and records and satsfying. more
Nov 29
Its ending up in taxing the social obligations of the state, which rather need to be facilitated or subsidized by it for development of the society and inclusive growth. Everybody would be happy with simplification. Is taxing of already exempt goods & services and increase in tax rates a simplification resulting in lowering of prices? Prices are up. Due process and citizens participation are necessary for such changes. more
Nov 29
when gst is charged to us and when we are unable to take credit or set off, the extra burden has to be passed on to students. in other words, the fees have to be increased. more
Nov 29
