Exempt Supply Under GST Regime

MEANING:

Exempt supply under GST includes Nil rated (taxable at 0%) & Non-taxable supplies.

Persons dealing exclusively in Nil rated or 100% Exempt goods/services are not liable to register under GST irrespective of their Turnover limit.

AGRICULTURE:

Agro-Inputs like fertilizers, seeds, irrigation (electricity is req.), Machinery & all other agricultural services are Exempt under GST, also, Agriculturist is Exempt from registration under the GST regime.

EDUCATION:

The following educational services are also exempted from GST:

1. National Skill Development Corporation set up by the Government of India.
2. Sector Skill Councils approved by the National Skill Development Corporation.
3. Assessment agencies approved by the Sector Skill Council or the National Skill Development Corporation.
4. Training partners approved by the National Skill Development Corporation or the Sector Skill Council have also included w.r.t the following programs:
(a) the National Skill Development Programme implemented by the National Skill Development Corporation
(b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme
(c) any other Scheme implemented by the National Skill Development Corporation.

The exemption has also been granted to the services provided by IIM’s to their students, by

1. Two year full-time residential PG programs in Management for Post Graduate Diploma in Management.
2. Fellowship programs in Management
3. Five Year Integrated Programs in management studies (excluding the Executive Development Program).

The following educational services led by training & coaching foundations don’t help in getting legally perceived qualifications, therefore, these are not exempted from GST:

1. Higher Education Institutions and Private Institutions:
The exemption under GST has been granted just for pre-schools till higher secondary education. Universities & other advanced educational institutions have not been mentioned in the exception list, & hence 18% GST is expected to be levied on this. Higher education in private schools will be more costly.

2. Coaching Institutes:
Coaching institutes today form an integral part of education as qualifying in competitive exams & entrance exams are significant in shaping the future of students. The rate of taxes under GST has been increased from 14% to 18% for these coaching institutions.

3. Cost of Organizing Events:
Any educational/training events organized in India by foreign entities which are attended by professionals, individuals and overseas participants as well would be taxed under GST.