Coaching classes are not eligible for GST exemption

After the Maharashtra AAR announced that coaching classes are not eligible for an exemption under GST, the Andhra Pradesh bench of the Authority for Advance Ruling has passed the same ruling. 

The applicant, a coaching class that offers a variety of coaching courses including regular courses, crash courses, exam revision courses along with different fee structures for the fields of chartered accountancy and cost accountancy and had approached the AP AAR to clarify whether they would be exempted from GST as they were training aspirant chartered accountants and cost accountants and Entry number 66 of relevant notifications provides an exemption to educational institutions provided they fulfill certain conditions including the service provided is related to education, the education is provided as a part of a curriculum and the education is provided for obtaining a qualification recognised by any law. 

The AAR bench observed that such coaching is not mandatory to be conferred a certificate from by the Institute of Chartered Accountants and the Institute of Cost Accountants. Additionally, the coaching class does not issue any coaching completion certificate, neither is it associated with or affiliated to the authorised bodies for conferring any coaching. As such, the coaching class is not eligible for an exemption under GST and will be liable to pay tax at the rate of 18%.

Recent posts
Tax planning for business expansion in the U.S.: Best practices for Indian startups in 2024
U.S. sales and use tax guide for SaaS businesses in India
Market entry playbook: Launching your brand in the U.S. tax landscape

Prepare your business for e-invoicing under GST

Discover how to meet all compliance requirements while integrating e-invoicing into your tax function.

Prepare your business for e-invoicing under GST

Stay up to date

Sign up for our free newsletter and stay up to date with the latest tax news.