Private coaching institutes are not ‘educational institutions’, they are responsible for paying GST – Times of India

New Delhi: Private coaching institutes are offering students the opportunity to study for qualifications like Chartered Accountancy (CA), Custom Accountancy, Company Secretary (CS) as they will have to pay 18 per cent GST for the services rendered. Companies’ that give tax exemptions.

Apartments Advance Ruling (AAR), the appellate authority of Kerala has upheld the earlier judgment of the AAR that non-government institutions are not educational institutions that award degrees or qualify for grants. Services provided by students to qualify for a degree from a professional institution will not be tax-exempt and will be liable to pay taxes.



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The AAAR rule came in an appeal filed by the Logic Management Training Institute of Kochi against a May order of the AAR of Kerala. When approving AAR’s decisions, the Appellate Authority stated that the appellant was not providing any provision for primary school or pre-school or higher secondary level or equivalent, so it was not engaged in providing education as part of the approved vocational education course, hence, it was classified as ‘educational institution’. Goes and is not liable to pay GST. It also clarified that conducting degree courses by colleges, universities or institutes that lead to qualification grants and would not be covered by training given to private coaching institutes, as such training does not lead to recognition qualification grants. Further, the appellant is not giving any valid course completion certificate or any CA, CMS, CS, ICWA degree. It is not compulsory for a person interested in pursuing coaching studies and obtaining a certificate at the applicant’s institution, nor is it mandatory for a student to submit or forward any certificate or nomination of their application or registration through the applicant for the award. Can help clear the exam / test, but does not lead to the awarding of certificates or degrees.

Accordingly, although private coaching centers or other recognized institutions are considered as self-styled educational institutions, it will not be subject to GST and thus will not be exempted, the AAR ruled.


It does, however, state that if, as a result of the appellant’s activity, the student pays a fee for the recognition of the degree, the institution offers the diploma as an authentic agent without any service charge, the amount may be exempt from GST.

The AAR further states that the full consideration received from the applicant from service recipients (such as registered students) as examination fees / other fees is liable to GST and added that the students qualify as dormitory facilities provided by the appellant and sale of textbooks to students. .


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