As the Private Coaching Institute those imparting education to students like Chartered Accountancy (CA), Cost Accountancy, Company Secretary (CS) will have to pay 18 per cent GST for the services rendered as they have not been considered educational institutions that get tax exemption.
Kerala’s Appellate Authority for Advance Ruling (AAAR) has upheld that an institute imparting coaching to students for qualifications CA, Cost Accountancy, CS, CMA, Certified Public Accountant, Association of Chartered Certified Accountant etc. is not covered under the definition of ‘educational institution’, and therefore not eligible for GST exemption.
The services tendered by them to students to help them qualify for a degree from a professional body would not get tax exemption and would be liable to pay taxes.
The ruling came in an appeal filed by Logic Management Training Institute, Kochi against a order of AAR, Kerala. The Authority said as the appellant is not providing any elementary education or pre-school or up to higher secondary level or equivalent, not is it engaged in providing Education as part of approved vocational education course, hence, it cannot be categorized as ‘education institution’ and liable to pay GST.
It also clarified that conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications would be covered, and training given by private coaching institutes would not be covered, as such training does not lead to grant of recognized qualification.
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