SAC Code and GST Rate for Educational Services

SAC code or Service Accounting Code is a classification methodology adopted by the Service Tax Department in India for levy of service tax. GST Council has utilized the SAC code structure for levy of GST in India. Under GST, services are taxed under five slabs namely 0%, 5%, 12%, 18% and 28%. Further, all service providers are required to obtain

GST registration if they undertake inter-state supply of goods or have an aggregate annual turnover of more than Rs.20 lakhs per annum. In this article, we look at the SAC Code and GST Rate for educational services in detail.

SAC Code for Educational Services

The SAC Code for educational services falls under heading 9992 of the Services Accounting Classification. There are various sub-headings to educational services as under the relevant SAC code. Educational institution will mean institutions providing services by way of:

Pre-school education and education up to higher secondary school or equivalent;
Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
Education as a part of an approved vocational education course;

Educational Services Exempt from GST

Services provided by an educational institution to its students, faculty and staff are exempt from GST. Hence, GST will not apply to most educational services. Also, GST is not applicable to the following services provided to an educational institution imparting pre-school education and education up to higher secondary school or equivalent:

Transportation of students, faculty and staff;
Catering, including any mid-day meals scheme sponsored by the Government;
Security or cleaning or house-keeping services performed in such educational institution;
Services relating to admission to, or conduct of examination by, such institution; upto higher secondary.

Also, services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme is exempt from GST:

Two year full-time residential Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT), conducted by Indian Institute of Management;
Fellow Programme in Management
Five years integrated programme in Management

GST Rate Pre-Primary Education Services

SAC Code 999210 is for pre-primary education services. GST is not applicable for pre-primary education services.

GST Rate for Primary Education Services

SAC Code 999220 is for primary education services. GST is not applicable for primary education services.

GST Rate for Higher Education Services

The following SAC codes are applicable for higher education services:

SAC Code 999241 - Higher education services, general
SAC Code 999242 - Higher education services, technical
SAC Code 999243 - Higher education services, vocational
SAC Code 999249 - Other higher education services

GST is not applicable to higher education services.

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Specialized Education Services

SAC Code 999259 is applicable for specialized education services. GST rate of 18% could be applicable for specialized education services, as the supplier might not fall under the definition for educational institutions.

Other Education & Training Services and Educational Support Services

The following SAC codes are applicable for other education & training services and educational support services:

SAC Code 999291 - Cultural education services
SAC Code 999292 - Sports and recreation education services
SAC Code 999293 - Commercial training and coaching services
SAC Code 999294 - Other education and training services n.e.c.
SAC Code 999295 - services involving the conduct of examination for admission to educational institutions
SAC Code 999299 - Other Educational support services

18% GST rate would be applicable for most of the other education and training services and educational support services, as it would not fall under the exemption provided for GST.

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Frequently Asked Questions

Common questions about SAC Code & GST Rate for Educational Services in India.

A SAC (Service Accounting Code) code is a classification methodology adopted by the Indian Service Tax Department for the levy of service tax, and later utilized by the GST Council for the levy of GST on services in India.

The SAC codes for educational services fall under the heading 9992 of the Services Accounting Classification. There are various sub-headings for different types of educational services, such as pre-school education, higher secondary education, higher education (general, technical, vocational), and specialized education services.

Yes, most educational services provided by recognized educational institutions are exempt from GST. This includes services provided to students, faculty, and staff by pre-schools, schools up to higher secondary level, and universities/colleges imparting recognized qualifications.

Services like transportation of students, faculty, and staff, catering (including mid-day meal schemes), security, cleaning, housekeeping, admission, and examination conduct services provided to educational institutions up to higher secondary level are exempt from GST.

No, executive development programs offered by Indian Institutes of Management (IIMs) are not exempt from GST. However, their regular full-time residential post-graduate programs and fellow programs are exempt.

Pre-primary (SAC code 999210) and primary education services (SAC code 999220) are exempt from GST, with a nil GST rate applicable.

No, higher education services, including general (SAC code 999241), technical (SAC code 999242), vocational (SAC code 999243), and other higher education services (SAC code 999249), are exempt from GST.

Specialized education services (SAC code 999259) may attract a GST rate of 18% if the supplier does not fall under the definition of an educational institution eligible for exemption.

No, educational support services like commercial training and coaching services (SAC code 999293), cultural education services (SAC code 999291), and other education and training services (SAC code 999294) are generally not exempt from GST and may attract a GST rate of 18%.

Services involving the conduct of examinations for admission to educational institutions (SAC code 999295) may attract a GST rate of 18%, unless specifically exempted for examinations up to higher secondary level.