Training, Coaching Services Does Not Come Under Educational Institution, No GST Exemption Available

APPLICANT'S NAME: TUTOR COMP INFO TECH PRIVATE LIMITED
DATE: 05.07.2022
KERALA -AAR
Training, Coaching Services Does Not Come Under 'Educational Institution; No GST Exemption Available- Kerala AAR

BRIEF FACTS

The Authority has observed that institutions providing services by way of education as a part of the curriculum for obtaining a qualification recognised by any lawfor the time being in force and those engaged in providing education as a part of an approved vocational education course are covered by the definition of "Educational Institution".

The applicant provides education services to students through its own online platform. The applicant sought an advance ruling on the issue of whetherthe transaction between the applicant and individual student on a one-to-one basis and providing education up to higher secondary school falls under SI. No. 66(a) of Notification No. 12/2017 CT (Rate) dated June 28,2017.

SI.No.: 66 Heading 9992

Services provided -

(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;

(iii) security or cleaning or housekeeping services performed in such educational institution;

(iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary:

Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

The educational services are classified under Heading 9992 in Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017. The education servicesunder Heading 9992 are further subdivided into six groups, comprising pre-primary, primary, secondary,

higher, specialized, and other educational and other educational and sport services.

The term "educational institution" is defined under clause (y) of Paragraph 2 of Notification No. 12/2017 CT (Rate), dated June 28, 2017. "Educationalinstitution" means an institution providing services by way of pre-education and education up to higher secondary school or equivalent; education as apart of a curriculum for obtaining a qualification recognised by any law for the time being in force; and education as a part of an approved vocational education course.

The AAR has noted that in order to qualify for exemption under Sl. No. 66(a) of the Services Exemption Notification, the applicant should be an "education institution" as defined under clause (y) of Paragraph 2 of the Services Exemption Notification.
The applicant is not a formal school but an institution that provides special training or coaching to students who are enrolled in formal schools for education up to high school or equivalent.

The authority observed that the training provided by the applicant neither leads to the grant of any qualification recognised by any law for the timebeing in force nor is part of an approved vocational education course.

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