The organization was discussing whether these services provided by schools and the amounts they charge should be subject to the GST. No tax is levied on tuition fees, as per the GST framework.
“Zero rate of tax on the provision of preschool education services to its students for a fee, the supply of goods, the provision of transportation services to preschool students and teachers/staff without any consideration as well as with a certain consideration, as well as on providing canteen service to its teachers and staff for certain consideration,” the Maharashtra advance ruling authority said.
He added that these services can be considered “composite supplies” if the school already charges the money with tuition.
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What are the tax experts saying?
“That decision correctly interpreted the concept of a composite supply and clarified that since early childhood education is exempt from the GST, any other property supplied with it for no consideration would be considered a composite supply and a zero tax rate. would be applicable,” Economic Times quoted Harpreet Singh, Partner, KPMG India, as saying.
Under the GST, the supply of such services can be defined as a composite supply or a mixed supply. Whether an item or service, such as school bus money that comes with, for example, school fees, is taxed is decided based on how the service is provided.