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of <h1>Yoga training courses not exempt from GST, classified as physical well-being services attracting 18% tax rate</h1> <h3>In Re: M/s. Stonorti Marketplace Private Limited,</h3> In Re: M/s. Stonorti Marketplace Private Limited, - TMI Issues Involved:1. Applicability of a notification issued under the provisions of the Act.2. Determination of the liability to pay tax on any goods or services or both.Issue-wise Detailed Analysis:1. Applicability of Notification No. 12/2017-CT (Rate) dated 28.06.2017:The applicant, M/s Stonorti Marketplace Private Limited, engaged in providing Yoga training and coaching, sought clarification on whether their services are exempt under Entry 80 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. The applicant argued that their services fall under 'training or coaching in recreational activities relating to arts or culture,' and hence should be exempt from GST.The notification in question exempts services by way of training or coaching in recreational activities related to arts, culture, or sports by entities registered under section 12AA of the Income-tax Act. The applicant contended that Yoga qualifies as a recreational activity related to culture, citing its roots in Indian culture and its recognition by UNESCO as part of the Intangible Cultural Heritage of Humanity.2. Determination of Liability to Pay Tax:The authority examined whether the applicant's services of Yoga training qualify as 'recreational activities' under Entry 80. The term 'recreational activity' was defined using various dictionaries and legal precedents, emphasizing activities done for enjoyment, amusement, or pleasure. The authority noted that Yoga, as described by the applicant, is more aligned with physical and mental wellness rather than mere recreation.The authority further analyzed the notification and concluded that the intention of the lawmaker was to provide GST exemption only to entities registered under section 12AA of the Income-tax Act for activities related to arts, culture, or sports. Since the applicant is not registered under section 12AA, their services do not qualify for exemption under Entry 80.Additionally, the authority referenced Circular No. 66/40/2018-GST dated 26.09.2018, which clarifies that only entities registered under section 12AA providing services for the advancement of religion, spirituality, or yoga are exempt from GST. The applicant's services, being aimed at physical well-being, do not fall under this exemption.Conclusion:The authority ruled that the services provided by the applicant, involving the training and coaching of Yoga for physical and mental wellness, do not qualify as 'recreational activities' under Entry 80 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. Instead, these services are classified under 'Physical well-being including health club and fitness centre' and are subject to GST at 18% (9% CGST + 9% SGST) as per Entry No. 35 of Notification No. 11/2017-CT (Rate) dated 28.06.2017.Ruling:Question: Whether the services supplied by the applicant by way of educating and training physical, mental, and spiritual practices of Yoga are exempted under Notification No. 12/2017-CT Rate dated 28.06.2017 under entry number 80Rs.Answer: No, it is not exempted. It will be covered under the service description 'Physical well-being including health club and fitness centre' under service code 999723 and will attract GST at 18% (9% CGST + 9% SGST) as per Entry No. 35 of Notification No. 11/2017-CT (Rate) dated 28-06-2017.
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