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New Delhi : The Union Finance Ministry on July 13, 2017, said that annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation is exempted from GST. The services provided by an educational institution to students, faculty and staff are fully exempted from GST.
The services of lodging/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, according to a PIB release. Annual subscription/fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST.
There were some reports that GST@18% will be levied on annual subscription/fees charged for lodging in hostels. This is not true. There is no change in tax liability relating to education and related services in the GST era, the Union Finance Ministry said, according to the PIB release.
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