New Delhi: The Personal Training Institute provides education to students who facilitate them to obtain qualifications such as Chartered Accountancy (CA), cost accounting, Corporate Secretary (CS) must pay 18 percent of GST for services that are considered ‘institutional education’ that get tax exemptions.
Appellate authorities during the government (AAAR), Kerala has upheld the previous verdict by AAR that private institutions are not educational institutions that provide degrees or or provide qualifications.
Services are tendered by them to students to help them qualify for a degree of a professional body will not get tax exemptions and will be responsible for paying taxes.
Happy! You have managed to throw your voteogin to see the results of the AAAR decision have come in the appeal submitted by the Logic Management Training Institute, Kochi against May Order of Aar, Kerala.
While approving AAR’s decision, the Appellate Authority said the applicant did not provide basic education or pre-school or up to higher middle level or equivalent, not involved in providing education as part of an approved vocational education course, therefore, it cannot be categorized as’ Educational institutions’ and are responsible for paying GST.
Also, he clarified that a degree behavior program by universities, universities or institutions that lead to the provision of qualifications will be borne, and the training provided by private training institutions will not be borne, because the training does not lead to recognized qualifications.
Furthermore, the applicant does not issue a valid or CA, CMS, CS, ICWA course.
Training at Appellant Institutions is not a mandatory compliance for candidates in pursuing studies and obtaining certificates, also not mandatory on the side of the student to provide certification or nomination or forwarding their application or registration through the applicant for giving law for giving.
Course certificates, and training provided by the applicant may help candidates to remove ICAI tests / exams, Icwa etc., but not in accordance with the provision of certificates or degrees.
Therefore, private coaching centers or other unrecognized institutions, although organizing themselves as educational institutions, will not be treated as under GST and thus cannot utilize the exception, AAR ruled.
However, saying that if applicant’s activity produces payment costs on behalf of students to recognize the title, the Diploma provides an institution as a pure agent without taking any service fees, the amount can claim release from GST.
Furthermore, AAR said that all considerations received by the applicant from the recipient of the service (i.e.
registered students) because of other inspection / cost costs are responsible to GST and add that the hostel facilities provided by the applicant to students and sales of textbooks to students, qualify as’ composite supply.
PVT Coaching Institutes not ‘educational institutions’, responsible for paying GST
