The Authority for Advance Ruling ( AAR ), Maharashtra held that services related to providing the coaching for entrance examination is taxable under GST at the rate of 18%.
The applicant, Simple Rajendra Shukla, runs a private institute Simple Shukla’s Tutorials and is engaged in providing the service of teaching to the students of Class XI and XII science. The Coaching Centre prepares the students for entrance examinations related to MBBS, Engineering and other related examinations.
The applicant claims that as per a Notification issued by the Central Government, services provided by an educational institution to its students will be taxed at Nil rate. He argued that the word “Education” and “Institution” has not been defined in the GST Act and as per the dictionary meaning educational institution means an organization formed to impart educational services. He further contends that rendering of educational services falls under the chapter heading of 9992.
The Authority comprising of Members B.V. Borhade & Pankaj Kumar found that the private institute doesn’t have any specific curriculum and does not conduct any examination or award any qualification recognized by any law which would be covered in the above notification. “The activity of the appellant is not covered under by the specific definition provided for interpretation of exemption notification. We find that the education service provided in the case is taxable at the rate of 9% under CGST Act and 9% under SGST Act.” the members observed.
