GST Exemption - Dance coaching classes

[Kaustubh Karandikar]

XYZ is conduction private classical dance training classes. Can he claim exemption from GST under Sr. No.80 of Notfn. No. 12/2017 viz. Services by way of training or coaching in recreational activities relating to arts or culture, by an individual which attracts ‘Nil’ GST?

[Amit Agrawal]

Assuming that XYZ is an individual, he should be able to claim subject exemption in given circumstances.

In this regard, attention is invited to serial no. 78 of same Notification No. 12/2017- Central Tax (Rate) (as amended till date) which implies that 'dance' is an 'art'.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Kaustubh Karandikar]

Respected Amit Sir.

Thanks for your kind reply. This being a proprietary firm, the exemption available to an individual will also be applicable to a proprietary firm. Your views please.

[Amit Agrawal]

In my view, there is no difference between a proprietorship-firm and its proprietor (i.e. both are one and the same). Hence, such proprietor, being an individual, is entitled for exemption under circumstances of subject query.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Kaustubh Karandikar]

Thank you very much Amit Sir for your quick guidance.

[P M]

Amit Sir,

I had the same doubt, but two more scenarios if you can help out with please

1) What if I now hire 2 other people to also teach dance because my students have increased? It is still a proprietorship and I will pay them salary, but does this still count as an "individual"?

2) Under the same proprietorship, I now hire another teacher to teach piano. It is still a proprietorship firm, will that exempt me from paying GST on any piano or dance fees that I collect?

3) Also, is painting considered an "art"? - because it is not mentioned in no.78 from the notification mentioned above, but as a layman, I believe it should be.

[Raghav Khandelwal]

Hi there,

Entry No 80 is applicable only when such service is supplied by Trust registered under specified section.

And Entry No 78 is applicable in case of dance performance only and not training given to the students.

IMO, Dance training is taxable.

AI Summary

GST exemption for dance training: proprietorship may qualify as individual, but training services may be treated as taxable.
Debate centers on whether private dance coaching is exempt under Notification No. 12/2017: one position treats dance as an art and extends exemption to individuals and proprietorships (viewing proprietorship as identical to its proprietor), while another contends the exemption entry applies to specified trusts and that the provision for dance covers performance not instruction, so dance training is taxable.