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Providing coaching services to studends of CA, CMA is not eligible for exemption under GST Notification No. 12/2017 - Central Tax (Rate): Says AAR

Facts and Issue before AAR

The applicant is a leading educational institution providing coaching to students for Chartered Accountancy certificate (‘CA’); Cost and Works Accountancy Certificate (‘ICWA’) and Intermediate Certificate. The coaching provided by the applicant enables the students to appear for the examinations conducted by the respective statutory bodies i.e., Intermediate (Higher Secondary Education), Chartered Accountancy Course (consisting of three levels i.e. CA Foundation Course (earlier referred as ‘CPT), CA-Intermediate (earlier referred as TPCC’) Course and CA-Final Course), and Cost Management Accountancy (Consisting of three levels i.e. CMA Foundation Course, CMA-Intermediate Course and CMA-Final Course) and to obtain the necessary qualifications.

The main issue before authority is to decide the following question. 

(a) Whether the applicant falls within the definition of the term ‘educational institution’ as defined under Notification No. 12/2017-Central Tax (Rate) dt.28.06.2017?

The term ‘educational institution’ is defined under the GST Act in Notification No. 12/2017- Central Tax (Rate), dated 28.06.2017 as follows:

“educational institution” means an institution providing services by way of-

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;

(iii) education as a part of an approved vocational education course;

Held by AAR

In the instant case, the coaching or training service provided in respect of the courses pertaining to CA (Inter & Final) and ICWA (Inter & Final) does Not fall under clause (i) of the above said definition, as the same is Not related to pre-school education and education up to higher secondary school or equivalent. Similarly, the service provided by the applicant also does Not fall under clause (iii), as the same is Not related to imparting of education as a part of an approved vocational education course (which is generally a Non-academic course and a specific trade / vocation oriented course). While examining whether the service falls under clause (ii) or Not, it is Noticed that:

(a) In the instant case, the applicant is Not accredited or affiliated or recognized or authorized by ICAI or ICWAI or it had any Partnership or MOU with statutory bodies viz., ICAI & ICWAI for imparting coaching or training relating to the courses recognized by these bodies. These statutory bodies are themselves offering ‘coaching and training classes’ to the aspirants through their Regional Councils or Branches or certain accredited private colleges / institutions. They impart training in tune with the curriculum prescribed by the above said statutory bodies. They, accordingly, issue course completion certificates to their students.

(b) On the other hand, the applicant is offering variety of coaching and training courses (regular, crash courses, revision exam courses etc.,) with different structures of fee, curriculum and options to the aspirants of CA and ICWA. This gives an option to the aspirants to choose a particular coaching and training of a particular course or group or subject and join in such a particular course. Further, the applicant is Not issuing any ‘coaching completion certificate’ or ‘any study certificate’ in respect of CA & ICWA Courses. Moreover, coaching or training in applicant’s coaching Centre is Not a mandatory compliance for an aspirant in pursuing their study and obtaining certificates from ICAI & ICWAI. It is also Not mandatory on the part of the student to furnish any certification or Nomination or forwarding of their applications or registrations through the applicant to the concerned statutory body in the chain of awarding of certification. The student is at liberty to discontinue coaching from the applicant’s coaching centre (at the cost of financial loss, but Not at the cost of academic loss) and continue his study on his own or from such other coaching centre in the course of pursuance of being conferred with Inter or Final Certificate by the above said statutory bodies.

Therefore, the service provided by the applicant to the aspirants of CA (Inter & Final) and ICWA (Inter & Final) does Not ensure that the student obtains a qualification recognized by any law and hence the same does Not fall under clause (ii) of the definition given to ‘Educational Institution’.

Therefore applicant is Not eligible for the exemption under Entry No.66(a) of Notification No.12/2017-CT(Rate) dated 28.06.2017, as amended.


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Author:

TaxReply


Jul 17, 2020

Comments


Please provide me detail of the course
By: Ankisha | Dt: Jul 17, 2020
I am interested for GST Course 12 pass
By: Anjani Kumar Chitlangia | Dt: Jul 17, 2020
After b.com we can doing for "ca " So some information we are how prepare IPPC level this Time
By: Vishwanath Tatya Vaidu | Dt: Jul 17, 2020
Pls provide all the information about institution and fee structure about all related courses
By: Suvarna Latha | Dt: Jul 18, 2020
Please tell me full information CA caurse after b. Com with 54perce
By: Ritesh Kumar | Dt: Jul 19, 2020
Please provide all details for CMA foundation course .
By: Samridhi Yadav | Dt: Jul 19, 2020


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