Online advertisement of tution centre.
This query is : Resolved
06 January 2018
I would like to take classes on tally.erp9. Accordingly i would like to make an online advertisement on classified site.Should i get registered and pay GST or it is not necessary till i reach 20 lakhs threshold limit.Notification 65/2017 exempts service advertised in ecommerce site.Will that apply to me.
Whether the situation will be different if i also distribute video lectures to students taking classes under me. Please clarify.
Whether the situation will be different if i also distribute video lectures to students taking classes under me. Please clarify.
08 January 2018
You need not to take registration if your turnover is within Rs.20 Lakhs pa
08 January 2018
What if i distribute video lectures to students.Whether in that case registration is necessary or not since i am distributing goods free?
09 August 2024
When it comes to advertising and providing educational services online, especially if you’re offering classes and distributing video lectures, you need to understand the implications of GST (Goods and Services Tax) and whether you need to get registered. Here’s a detailed explanation tailored to your situation:
### **1. GST Registration and Threshold Limit**
#### **GST Registration Requirement:**
- **Threshold Limit:** In India, the GST registration threshold limit for service providers is ₹20 lakhs (₹10 lakhs for special category states). If your annual turnover is below this limit, you are not required to register for GST.
- **Exemption Notification:** Notification 65/2017 (Central Tax) exempts certain services from GST when advertised on e-commerce platforms. This means that if your advertisement for tuition classes is on an e-commerce platform, you might be exempt from GST for the advertisement service itself.
### **2. Advertising Your Tuition Centre**
#### **Online Advertisement:**
- **GST Applicability:** If your total turnover does not exceed the ₹20 lakh threshold and you are advertising your tuition services online, you generally do not need to register for GST. However, if the advertisement is through a classified site or e-commerce platform, and the platform falls under the exemption category, you might not need to pay GST on that service.
- **Notification 65/2017:** This notification provides an exemption from GST for certain services provided by way of advertisement on e-commerce platforms. If this applies to your advertisement service, you may not need to pay GST for this specific service.
### **3. Providing Educational Classes and Video Lectures**
#### **Conducting Classes:**
- **Educational Services:** Educational services are generally exempt from GST under the category of ‘Services provided by an educational institution.’ Since you’re providing classes on Tally ERP9, these services are exempt from GST.
- **Turnover Check:** Even though educational services are exempt, you still need to monitor your turnover. If your total turnover from all sources (including advertisement and other services) exceeds ₹20 lakh, you will need to get registered for GST.
#### **Distributing Video Lectures:**
- **Goods or Services:** If you’re distributing video lectures, it depends on whether you are providing them as a paid service or for free.
- **Paid Distribution:** If you charge for access to these video lectures, it would be considered a supply of services. Since educational services are exempt, this might not attract GST, but you should confirm this based on the exact nature of the service.
- **Free Distribution:** If you are providing the video lectures free of charge, it is unlikely that GST would apply. However, this free distribution does not require registration.
### **Summary and Recommendations:**
1. **GST Registration:**
- If your total turnover from all sources is below ₹20 lakh, you do not need to get registered for GST.
- For advertising services on e-commerce platforms, check if Notification 65/2017 applies. It generally exempts GST on such services if certain conditions are met.
2. **Educational Services:**
- Providing tuition classes and educational content is generally exempt from GST. Ensure your turnover remains below the threshold to avoid complications.
3. **Video Lectures:**
- If you distribute video lectures as part of your educational service and do not charge for them, GST is not applicable.
- If you charge for video lectures, verify if the exemption applies based on the educational nature of the service.
4. **Consult a Professional:**
- For precise advice tailored to your situation, including the specific application of exemptions and threshold limits, consider consulting a tax professional or GST consultant.
By understanding these aspects, you can effectively manage your online advertisement and educational services while staying compliant with GST regulations.
### **1. GST Registration and Threshold Limit**
#### **GST Registration Requirement:**
- **Threshold Limit:** In India, the GST registration threshold limit for service providers is ₹20 lakhs (₹10 lakhs for special category states). If your annual turnover is below this limit, you are not required to register for GST.
- **Exemption Notification:** Notification 65/2017 (Central Tax) exempts certain services from GST when advertised on e-commerce platforms. This means that if your advertisement for tuition classes is on an e-commerce platform, you might be exempt from GST for the advertisement service itself.
### **2. Advertising Your Tuition Centre**
#### **Online Advertisement:**
- **GST Applicability:** If your total turnover does not exceed the ₹20 lakh threshold and you are advertising your tuition services online, you generally do not need to register for GST. However, if the advertisement is through a classified site or e-commerce platform, and the platform falls under the exemption category, you might not need to pay GST on that service.
- **Notification 65/2017:** This notification provides an exemption from GST for certain services provided by way of advertisement on e-commerce platforms. If this applies to your advertisement service, you may not need to pay GST for this specific service.
### **3. Providing Educational Classes and Video Lectures**
#### **Conducting Classes:**
- **Educational Services:** Educational services are generally exempt from GST under the category of ‘Services provided by an educational institution.’ Since you’re providing classes on Tally ERP9, these services are exempt from GST.
- **Turnover Check:** Even though educational services are exempt, you still need to monitor your turnover. If your total turnover from all sources (including advertisement and other services) exceeds ₹20 lakh, you will need to get registered for GST.
#### **Distributing Video Lectures:**
- **Goods or Services:** If you’re distributing video lectures, it depends on whether you are providing them as a paid service or for free.
- **Paid Distribution:** If you charge for access to these video lectures, it would be considered a supply of services. Since educational services are exempt, this might not attract GST, but you should confirm this based on the exact nature of the service.
- **Free Distribution:** If you are providing the video lectures free of charge, it is unlikely that GST would apply. However, this free distribution does not require registration.
### **Summary and Recommendations:**
1. **GST Registration:**
- If your total turnover from all sources is below ₹20 lakh, you do not need to get registered for GST.
- For advertising services on e-commerce platforms, check if Notification 65/2017 applies. It generally exempts GST on such services if certain conditions are met.
2. **Educational Services:**
- Providing tuition classes and educational content is generally exempt from GST. Ensure your turnover remains below the threshold to avoid complications.
3. **Video Lectures:**
- If you distribute video lectures as part of your educational service and do not charge for them, GST is not applicable.
- If you charge for video lectures, verify if the exemption applies based on the educational nature of the service.
4. **Consult a Professional:**
- For precise advice tailored to your situation, including the specific application of exemptions and threshold limits, consider consulting a tax professional or GST consultant.
By understanding these aspects, you can effectively manage your online advertisement and educational services while staying compliant with GST regulations.
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