Private entrance-coaching services are taxable under GST and do not qualify for the educational-institution exemption.
Private coaching for entrance examinations does not qualify as services of an educational institution under the GST exemption, because the notified definition is limited to pre-school through higher secondary education, curriculum-based education leading to a qualification recognised by law, or approved vocational education. A tutorial institute preparing students for entrance tests does not provide a recognised curriculum or a legally recognised qualification, so the exemption is unavailable. Such coaching services are therefore taxable under GST and liable to CGST and MGST at 9% each.
Issues: Whether coaching services for entrance examinations provided by a private tutorial institute fall within the definition of an educational institution so as to qualify for exemption under the relevant GST notification, and if not, whether such services are taxable under GST.
Analysis: The exemption for education services applies only where the services are provided by or to an educational institution as defined in the notification. That definition is confined to institutions providing pre-school education and education up to higher secondary level or equivalent, education as part of a curriculum leading to a qualification recognised by law, or approved vocational education. A private coaching institute preparing students for entrance examinations does not follow a recognised curriculum, does not conduct an examination leading to a legal qualification, and does not fit within the notified definition. The education service supplied by such an institute therefore does not attract the exemption and falls within the taxable category of education services.
Conclusion: The coaching services for entrance examinations are not exempt as services of an educational institution and are liable to GST at 9% under CGST and 9% under MGST.
Final Conclusion: The application was decided by holding that private entrance-coaching services are taxable and do not qualify for the educational-institution exemption.
Ratio Decidendi: Exemption for education services under GST is available only to institutions that satisfy the notified definition of an educational institution, and private coaching for entrance examinations without a recognised curriculum or legally recognised qualification does not meet that definition.
TaxTMI 
AI Drafter ✕
TaxTMI 
