The Authority of Advance Ruling (AAR), Andhra Pradesh, has held that all the coaching institutes providing the supply of education services to the aspirants and students preparing for CA (Chartered Accountant) and CMA (Cost and Works Accountant) will not be exempted from GST (Goods and Services Tax) under Entry no.66 of Notification No.12/2017-Central Tax (Rate) dated June 28, 2017, as amended by Notification No.2/2018-Central Tax (Rate) dated January 25, 2018. The ruling will apply to all the coaching institutes across the country and will help in determining the fees structure for the students.
The ruling was provided amid an application filed by M/s Master Mind, a coaching institute providing educational services to students preparing for the professional course of CA, CMA and Intermediate Certification. The educational services provided by the institute enables the students to prepare and appear for Higher Secondary Education (Intermediate), the three levels of Chartered Accountant course (Foundation, IPCC, and Final), three levels of Cost and Works Accountant (Foundation, Intermediate, and Final) and obtain the necessary qualifications.
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The applicant sought the advance ruling of the authority as to whether the supply of educational services, which enables the students to prepare and appear for Higher Secondary Education (Intermediate), the three levels of Chartered Accountant course (Foundation, IPCC, and Final), three levels of Cost and Works Accountant (Foundation, Intermediate, and Final) and obtain the necessary qualifications according to the curriculum set up the respective government or governing statutory authorities, will be exempted from GST under Entry no.66 of Notification No.12/2017-Central Tax (Rate) dated June 28, 2017, as amended by Notification No.2/2018-Central Tax (Rate) dated January 25, 2018.
The bench of AAR, with D. Ramesh and M. Shreekant as members, held that supply of such educational services will not be exempted under Entry no.66 of Notification No.12/2017- Central Tax (Rate) dated June 28, 2017, as amended by Notification No.2/2018-Central Tax (Rate) dated January 25, 2018.
The applicant also wanted the advance ruling of the AAR on another issue as to whether the hostel and other accommodation services provided to such student will be exempted from GST under Notification No.12/2017-CT (Rate) dated June 28, 2017 (entry no.14), as amended read with Circular No 32/06/2018-GST dated February 12, 2018, as the charges for such services were less than Rs. 1,000 per day. On which the AAR said, “The applicant is not eligible for the exemption under Entry No.14 of Notification No.12/2017 CT(Rate) dated 28.06.2017.”
