Clarifications on GST Applicability on Educational and Other Services: Key Updates from Circular No. 234/28/2024-GST Dated October 11, 2024

Summary:

The Circular No. 234/28/2024-GST, dated October 11, 2024, provides clarifications regarding the applicability of GST on various services based on the recommendations of the GST Council from its 54th meeting. The key points covered include:

1. Affiliation Services for Colleges and Schools:
Universities providing affiliation services to colleges will be subject to an 18% GST, as these services are not exempt under educational provisions. Affiliation services provided by educational boards to schools are also taxable, except for government schools, which have been exempted from October 10, 2024. Retroactive regularization of GST payment on such services from July 1, 2017, to June 17, 2021, has also been recommended.
2. Flying Training Courses:
DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) are exempt from GST, as they fall under the definition of educational services.
3. Helicopter Passenger Transport:
Passenger transport by helicopter on a seat-share basis is taxed at 5%, effective October 10, 2024. Charter services will continue to be taxed at 18%.
4. Goods Transport Agency (GTA) Services:
Incidental services such as loading, unloading, and warehousing provided in relation to transportation of goods by road will be treated as composite supplies and taxed as part of the GTA service.
5. Import of Services by Foreign Airlines:
GST exemption has been granted for services imported by foreign airlines from related persons or establishments outside India, effective October 10, 2024. Retroactive regularization of such GST payments is also recommended for the period from July 1, 2017, to October 9, 2024.
6. Preferential Location Charges (PLC):
PLCs charged along with consideration for residential or commercial property sales are part of composite supplies of construction services and are subject to the same GST rate.
7. Support Services by Electricity Utilities:
Ancillary services provided by electricity utilities, such as metering and testing, are now exempt from GST as of October 10, 2024. Payments for past services will also be regularized.
8. Film Distribution Services:
GST on services provided by film distributors to exhibitors is regularized at 18% for transactions from July 1, 2017, to September 30, 2021.