Private Coaching Institute imparting education to students facilitating them to obtain qualifications like CA, CS will have to pay 18% GST for the services rendered as they have not been considered 'educational institutions' that get tax exemption.
The Appellate Authority on Advance Ruling (AAAR), Kerala has upheld an earlier ruling by AAR that private institutes are not educational institutions that give degrees or grant qualifications. the services rendered by them to students to help them to qualify for a degree from a professional body would not get tax exemption and would be liable to pay taxes.
The AAAR ruling has come in an appeal filed by Logic Management Training Institute, Kochi against a May order of AAR, Kerala. While approving the decisions of the AAR, the appellate Authority said the appellant is not providing any elementary education or pre-school or up to higher secondary level or equivalent, not is it engaged in providing Education as part of approved vocational education course, hence, it cannot be categorized as 'education institution' and liable to pay GST.