Training, Coaching Services Does Not Come Under ‘Educational Institution’, No GST Exemption Available: Kerala AAR

The Kerala Authority for Advance Ruling (AAR) has ruled that training and coaching services do not come under the definition of "educational institution" to claim GST exemption.

The two-member bench of S.L. Sreeparvathy and Abraham Renn S has observed that institutions providing services by way of education as a part of the curriculum for obtaining a qualification recognised by any law for the time being in force and those engaged in providing education as a part of an approved vocational education course are covered by the definition of "educational institution."

The applicant provides education services to students through its own online platform.

The applicant sought an advance ruling on the issue of whether the transaction between the applicant and individual student on a one-to-one basis and providing education up to higher secondary school falls under Sl. No.66(a) of Notification No. 12/2017 CT (Rate) dated June 28, 2017.

The educational services are classified under Heading 9992 in Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017. The education services under Heading 9992 are further subdivided into six groups, comprising pre-primary, primary, secondary, higher, specialized, and other educational and support services.

The term "educational institution" is defined under clause (y) of Paragraph 2 of Notification No. 12/2017 CT (Rate), dated June 28, 2017. "Educational institution" means an institution providing services by way of pre-education and education up to higher secondary school or equivalent; education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; and education as a part of an approved vocational education course.

The AAR has noted that in order to qualify for exemption under Sl. No. 66(a) of the Services Exemption Notification, the applicant should be an "educational institution" as defined under clause (y) of Paragraph 2 of the Services Exemption Notification. The applicant is not a formal school but an institution that provides special training or coaching to students who are enrolled in formal schools for education up to high school or equivalent.

The authority observed that the training provided by the applicant neither leads to the grant of any qualification recognised by any law for the time being in force nor is part of an approved vocational education course.

Applicant’s Name: Tutor Comp Info Tech Private Limited

Date: 05.07.2022

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