Education Services GST Rates and SAC Code 9992

The Indian Goods and Services Tax (GST) regime has created a taxation system that encompasses a variety of different services, including those in the education sector. Central to this system is the Service Accounting Code (SAC) system which serves as a service taxonomy for GST. SAC Code 9992 is specifically for education services and includes various forms of educational services.

Understanding SAC Code 9992

SAC Code 9992 is allocated under the GST system for services pertaining to education. Further, this code is subdivided to allocate different degrees and branches of education service as follows:

SAC Code	Description	Rate Revision
999210	Pre-primary education services	18%
999220	Primary education services	18%
999231	Secondary education services, general	18%
999232	Secondary education services, technical and vocational	18%
999241	Higher education services, general	18%
999242	Higher education services, technical	18%
999243	Higher education services, vocational	18%
999249	Other higher education services	18%
999259	Specialized education services	18%
999291	Cultural education services	18%
999292	Sports and recreation education services	18%
999293	Commercial training and coaching services	18%
999294	Other education and training services n.e.c.	18%
999295	Services involving conduct of examination for admission to educational institutions	18%
999299	Other educational support services	18%

These subdivisions guarantee that all subtypes of education services are captured fully, ensuring that all appropriate policies and taxes are developed for them within the scope of GST.

You Can Also Read: GST on Education Fees: Rates and Exemptions

Applicable GST Rates for SAC Code 9992

The GST rates that are charged for different services offered under SAC Code 9992 differ from one service to another as well as from one service provider to another. For the most part, the provision of educational services falls under the list of taxable services rated 18% GST. However, as a means to aid the education sector, a number of exemptions are provided in order to encourage its development and make it affordable. According to Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017, the following services are exempt from GST:

1. Services rendered by an educational institution to its learners, instructors and other employees.

2. Services rendered to an educational institution that includes:

a. Transportation of learners, instructors and other employees.

b. Mid-day meals catering, including government-sponsored programs.

c. Cleaning, security, or even general housekeeping done in the institutions of learning.

d. Services pertaining to admission to the institution or examination conducted by the institution.

It should be said that these exemptions are mostly for providers of services up to and including higher secondary or its equivalent level. Providers of services at the post secondary level may not have these exemptions and are required to satisfy certain conditions to have them.

Exemptions Pertaining to Recognized Programs

The basis of Grant of Exemption Notification is some services rendered by certain recognized institutions are also exempted under GST. Take, for instance, the students of Indian Institutes of Management (IIMs) who are not liable to pay GST on the following service activities rendered to them through teaching:

1. IIMs’ Judgmental Selection System (JSSS) for the two year full-time post graduate programs as Master in Management as well as postgraduate diploma in management, where a candidate is admitted through a Common Admission Test (CAT) conducted by the IIM.

2. Fellow Program in Management.

3. Integrated Masters in Management (five years)

Nonetheless, IIMs’ Executive Development Programs aren’t exempt from the taxation and are subject to GST at the appropriate prices.

Input Tax Credit (ITC) Implications

Education providers for exempt services provided will not be entitled to claim Input Tax Credit (ITC) on the goods and services supplied to enable the provision of these services. In other words, the output GST-free service means that tax on supplies cannot be refunded, increasing the burden of cost to provide educational services.

You Can Also Read: GST Exemption on Educational Course Fees

Conclusion

Under the GST system in India, SAC Code 9992 is crucially important in regards to the classification and taxation of education services. The general education service under GST has a standard GST rate of 18 percent, however, several exclusions do exist to promote educational access and affordability. Educational institutions need to review all services provided against the GST regulations to ensure compliance and effective tax planning. Best practices would recommend checking official GST notifications or consulting with professionals for the latest changes pertaining to the SAC Code 9992 or updates on the GST rates.

FAQs

1. What is SAC Code 9992 in GST?

SAC Code 9992 is designated for education services under GST and it covers all forms of education including primary, secondary, and higher education.

2. What are the GST rates applicable to SAC Code 9992?

The SAC Code 9992 has diverse GST rates, but in the case of education services, most of them are not taxed. Nevertheless, some coaching and training services do attract 18 percent GST.

3. Are all education services under SAC Code 9992 exempt from GST?

No, not all of them are exempt from the tax. A few specific education services offered by recognized institutions up to higher secondary level are the only ones exempt. Other education services may attract GST.

4. Is there any Central Goods and Service Tax liability for private coaching institutions with SAC Class 9992?

Yes, private coaching and commercial training services fall under SAC Code 9992, hence it attracts an 18% GST.

5. What is the difference between the SAC Code 9992 and HSN Code 9992?

The difference is that SAC Code 9992 relates to education service classification for GST purposes while HSN Code 9992 does not exist because HSN codes are for goods, not services.