The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that the private coachings for Chartered Accountants (CA), Company Secretary (CS), Cost Accountants (CMA) etc. not an “Educational Institution”, liable to pay GST.
The appellant, Logic Management Training Institute is an institute imparting coaching to the students to facilitate them to obtain qualification such as Chartered Accountant. Cost Accountant. Company Secretary, certified Management Accountant, certified Public accountant. Association of Chartered certified Accountant etc.
The Appellant has filed an appealed against the AAR, Kerala ruling wherein it was held that institutes imparting education to students for becoming Chartered Accountant (CA), Cost Accountancy, Company Secretary (CS), Certified Management Accountant (CMA) etc are not covered under the definition of ‘educational institution’ in Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated June 28, 2017 , which is in respect of Services Exemption Notification.
The coram of Shyam Raj Prasad and Anand Prasad ruled that the Appellant is not providing any elementary education or pre-school or upto higher secondary level or equivalent, not is it engaged in providing Education as part of approved vocational education course. Further, the Appellant is not issuing any certificate or degree and it is not mandatory for student to taking coaching from institutions like that of Appellant’s for becoming CA, CS, CMA etc.
The AAAR held that the Appellant cannot be categorized as ‘education institution’ and upheld the ruling of AAR, Kerala.
The Appellate Authority clarified that conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications would be covered under the definition of “educational institution”, 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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