The Rajasthan Authority of Advance Ruling (AAR) has ruled that 18% Goods and Service Tax (GST) is applicable on education and training in physical, mental, spiritual practices of Yoga.
The applicant M/s Stonorti Marketplace Private Limited offers various courses of Yoga and also offers Yoga Teacher Training Courses. That the applicant filed application before AAR is to know if the services of training and coaching students in Yoga is covered under entry 80(a) of the notification no. 12/2017.
That the applicant contents that, those activities of educating and training of Yoga is a service and is exempt under entry 80, Tariff 9996 of Notification no.12/2017. The applicant subdivides entry 80 of the notification no. 12/2017 for better understanding.-
a. There should be activity of training or coaching
b. It should be in recreational activities
c. The said training or coaching should relate to art or culture
As per the detailed submission of the applicant, they are providing services by way of” training” in “recreational activities” relating to ‘Culture’.
The jurisdictional officer submitted comments that the said notification exempts only intrastate supply of services mentioned in its table. The applicant, as per their submission,is engaged in physical training, mental and spiritual practice of Yoga both ‘virtually and physically’ and charging fees as per yoga courses.Further, as per the Law Insider Dictionary’ “Recreation activity” means any outdoor activity undertaken for the purpose of exercise, relaxation or pleasure, including practice or instruction in any such activity. “Recreational activity” does not include any organized team sport activity sponsored by the owner of the property on which the activity takes place. Similarly, as per Merriam Webster Dictionary “Culture” means the belief, customs, arts, etc. of a particular society, group, place or time/ a particular society that has its own beliefs, ways of life, art, etc.
In the above view it appears that “training for Yoga courses” does not fulfill the meaning of “Recreational activity relating to Culture ” Accordingly the benefit under Entry No. 80 of the notification No. 12/2017-Central Tax (Rate) would not be available to the applicant.
While deciding the application, the coram of J.P.MEENA, Additional Commissioner (Member (Central Tax)) and M. S. Kavia, Joint Commissioner (Member (State Tax)) held that the activity of offering of various courses of Yoga for improving mental and physical wellness for consideration in form of fees is covered under ‘supply’ as per section 7 of the CGST Act, 2017.By analyzing relevant entries it was further held that “the services by way of training or coaching of various Yoga courses by applicant for consideration, is not exactly for “Recreation activity” whereas the same is for ‘Physical well-being activities’ and hence, it is not covered under entry No. 80 of the Notification No. 12/2017-CT(R).
Further, as per circular No. 66/40/2018-GST, only those services which provided by entity registered under Section 12AA of the Income Tax Act, 1961 by way of advancement of religion, spirituality or yoga, are exempt. The essence of the said circular is to provide exemption in respect of services of advancement of yoga to only those entities who registered under Section 12AA of the Income Tax Act, 1961″. The authority ruled that the applicant is not registered under Section 12AA of the Income Tax Act, 1961, therefore in light of above referred circular, the applicant is not eligible to avail benefits of entry No. 80 of the Notification No. 12/2017-CT(R)
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