Training classes are not eligible for exemption from GST, AAR rules
MUMBAI: Coaching classes do not get any exemption from the Goods and Services Tax (GST), this position was reiterated by a ruling issued by the Andhra Pradesh Bank of the Advance Rulings Authority (AAR). A similar position has been taken previously, including by AAR’s Bank of Maharashtra.
Entry No. 66 of the relevant notifications provides for the exemption of educational services, if they are provided by an educational institution, subject to certain conditions. These are: the service provided is related to education, education is provided as part of a curriculum, and education is provided to obtain a qualification recognized by any applicable law.
The applicant, Master Minds, was offering a variety of training courses (regular, crash courses, review exam courses) with different fee structures and curriculum options for applicants (students) from the collegiate accounting streams and cost accounting.
The AAR bank pointed out that such training is not mandatory to receive an inter or final certificate from the Institute of Public Accountants and the Institute of Cost Accountants, which are statutory bodies.
The coaching class was not issuing any coaching completion certificates or transcripts regarding the collegiate accounting and cost accounting courses.
Master Minds was not accredited, affiliated, recognized, or authorized by these two professional institutions to provide coaching or training. These same professional institutions offered coaching and training to applicants through their regional councils or branches or certain accredited bodies, in accordance with the prescribed curriculum.
Given the above, the AAR held that the training class was not eligible for the exemption provided by the GST notice. The training class will have to impose and charge GST at 18%. Likewise, the fees charged for providing accommodation and catering services to your students would not get the benefit of any exemption from the GST.