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18% GST Applicable On Coaching Fees Clarifies Government



While some of the educational services attract no tax, the government clarified that coaching centres do come under GST net and 18% GST shall be charged on coaching class fees as per the ruling by the Maharashtra Authority for Advance Rulings (AAR). It is to be noted that a Mumbai-based coaching institution moved state AAR for clarification on GST implication on coaching fees.


18% GST Applicable On Coaching Fees Clarifies Government

And in response the AAR ruled that on coaching fees 18% GST rate is applicable. Also it made a clarification that institutes that offer vocational training, pre-school and higher secondary education come under 'nil' tax. In a general case, services provided by educational institutions are taxed at nil rate.

In an earlier instance Central Board of Excise and Customs (CBEC) said, "Training given by private coaching institutes would not be covered as such training does not lead to the grant of a recognized qualification". The authority said that unrecognized institutions and other private coaching institutes operating as educational institutions would not be deemed as educational institutions under GST and hence cannot avail or be eligible for exemptions.

The government exempted core education services from GST but levied 18% tax on other educational services and provided "full admissibility" of Input Tax Credit (ITC) for such taxable services.

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