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Coaching classes are not eligible for GST exemption

  • Oct 19, 2020 | Divita S Gupta

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%.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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