The recent announcement by the GST council regarding the exemption of hostel accommodation services provided by outdoor tutorial institutions is a positive development for educational institutions offering experiential learning opportunities outside the traditional classroom setup. This exemption is expected to have a significant impact on both students and educational institutions.
Exemption Details and Conditions:
The GST Council has specified that the exemption for services providing hostel accommodation outdoor tutorial institutions is limited to a maximum of ₹20,000 per person per month. However, this exemption is applicable only if the services are provided continuously for a minimum period of 90 days.
Existing Exemptions for Hostels:
It is important to note that hostels within educational institutions are already exempt from GST. This new exemption specifically targets hostel accommodation services provided by outdoor tutorial institutions, further enhancing the tax benefits in this sector.
Additional Information:
In addition to this exemption, the GST Council is also considering the possibility of exempting the fertiliser sector from the 5% GST. This demonstrates the government’s ongoing efforts to streamline taxation policies and provide relief to various industries.
Conclusion:
The exemption for hostel accommodation services provided by outdoor tutorial institutions is a welcome move that is expected to benefit both students and educational institutions. By offering tax relief in this area, the government is supporting the growth of experiential learning opportunities and encouraging innovation in the education sector.
