20 February 2019
dear sir,
I want to know whether services by way of musical teaching such as training in singing, training in playing instrument etc. liable to gst or it is exempt under recreational activities.
If it liable to gst then what is the rate for.
27 July 2024
The GST treatment of services related to musical teaching, including training in singing or playing musical instruments, is an important aspect to understand. Here’s the detailed information:
### GST Rate on Musical Teaching Classes
1. **Nature of Service:** - Musical teaching, including training in singing and playing instruments, falls under the category of **coaching or training in recreational activities**. This is different from performances, which are considered under a separate category.
2. **GST Rate:** - **Coaching in Recreational Activities:** Services provided for coaching or training in recreational activities, such as musical teaching, are classified under **"educational services"** if they are provided by an institution or an individual with the primary aim of imparting education.
- **Rate:** The GST rate for such educational services is generally **18%**. However, if the musical teaching is provided by an institution recognized as an educational institution, it might be exempt from GST under the **"educational services"** category.
3. **Exemption for Educational Institutions:** - Under **Notification No. 12/2017 - Central Tax (Rate)** dated 28th June 2017, **educational services** provided by an educational institution to its students, faculty, or staff are exempt from GST. This exemption typically covers training in various subjects, including music, if provided by recognized educational institutions.
4. **Clarification on Recreational Activities:** - **Performance vs. Coaching:** The GST treatment differs between performance in recreational activities (such as musical performances) and coaching/training in recreational activities (such as musical teaching). Coaching or training services are generally subject to GST unless they fall under specific exemptions provided for educational services.
### Key Points:
- **Educational Institutions:** If the musical teaching is provided by an institution recognized as an educational institution, it might be exempt from GST. - **Private Coaching:** For private entities or individuals providing musical teaching services, the GST rate of **18%** typically applies unless specific exemptions are applicable.
### Recommendations:
- **Verify Institution Status:** Confirm whether the musical teaching is conducted by a recognized educational institution to determine if an exemption applies. - **Consult a Tax Professional:** For accurate advice based on specific circumstances and to ensure compliance with current GST regulations, consulting a tax professional or GST consultant is recommended.
By following these guidelines, you can ensure proper compliance with GST regulations related to musical teaching services.
CAclubindia
