GST for Music teaching class

[Balachandran S]

Hello experts,

I would appreciate an answer from the experts on this.

We run a 'Music school'. It is for hobby music classes. We have about 20 tutors who come and teach these classes. These are on the weekends or evenings. Once a week for each student. We have a turnover of more than 20 Lakhs per annum. About 60% is paid to the teachers and the remaining for other employees and infra and profit. Also this is a sole proprietorship.

We were not paying service tax. I am trying to find out if we fall under GST and if we do what rates? Id appreciate any inputs on these.

thank you

Sreekanth

[KASTURI SETHI]

You are required to pay GST and apply for registration. GST is on gross amount. Read Section 15 of CGST. No deduction on account of expenses towards salary. All expenses forms part of transaction value.

AI Summary

Music school must register and pay GST on gross income exceeding 20 lakhs annually, as per CGST Act Section 15. A music school operating as a sole proprietorship, with a turnover exceeding 20 lakhs per annum, inquired about its obligation to pay Goods and Services Tax (GST). The school, which offers hobby music classes with about 20 tutors, was previously not paying service tax. An expert replied that the school must register for GST and pay it on the gross amount, as per Section 15 of the Central Goods and Services Tax (CGST) Act. Expenses such as salaries are included in the transaction value and cannot be deducted.