Educational services exemption for student coaching fees required fresh examination, and the GST demand was set aside and remanded.
GST demand on coaching and allied fees collected by an educational institution could not stand where the exemption entry for educational services and the relevant circular were not read together. The authority had focused on the circular's discussion of entrance, admission, eligibility and migration fees, but had not properly considered the clarification that educational services supplied by an educational institution to its students are exempt. As the exemption claim for coaching services extended to enrolled students, including the abacus-related course, was not examined on the correct footing, the order was set aside and the matter remanded for fresh adjudication after giving the institution an opportunity to reply and raise all exemption grounds.
Issues: Whether the order demanding GST on coaching and allied fees collected by an educational institution was sustainable in view of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and Circular No. 177/09/2022-TRU dated 03.08.2022, and whether the matter required remand for fresh consideration of the exemption claim.
Analysis: The exemption entry and the circular had to be read together. The impugned order focused on the later part of the circular dealing with entrance fee, admission fee, eligibility certificates and migration certificates, but did not properly consider the earlier clarification that educational services supplied by an educational institution to its students are exempt. The question before the authority was whether the coaching services extended to enrolled students, and also the abacus-related course, fell within the exempted educational services. Since the exemption claim was not examined with reference to the relevant part of the circular, the conclusion that GST was payable could not stand and the matter required fresh adjudication after affording the petitioner an opportunity to respond.
Conclusion: The impugned order was set aside and the matter was remanded for reconsideration, with liberty to the petitioner to file a detailed reply and urge all grounds on exemption.
TaxTMI 
AI Drafter ✕
TaxTMI 
TaxTMI 
