Coaching Centers will liable to 18% GST

Coaching Centers will liable to 18% GST, Government gave Clarification

New Delhi:- The coaching centers will liable to 18% GST. Those institutes  preparing for the entrance exam will be able to charge the Goods and service tax to their students. This information is provided by the Authority for Advanced Routing (AAR).

In the Maharashtra branch of the AAR, an application was sought and whether the provision of entrance exam  preparing coaching center would be based on the GST, this arrangement was given in response to that.

A tutorial was request for information:-

Shukla Tutorials of Maharashtra had request for this information. It runs coaching classes for 11th  and 12th class students, which helps in engineering and medical entrance. On this AAR had said that this coaching does not come under GST because it is not in the definition of the Educational Institution.

This is Definition:-

According to AAR, the private institutions run such coaching where neither degree is given nor certificate, then it is 9% CGST and 9%SGST. In GST, the center and the states tax get equa. In this way, coaching institutions will have a total tax of 18%.

According to AMRG & Associates Partners Rajat Mohan those coaching center preparing to the entrance exams, it is clear that neither under Indirect Tax nor any relief under GST will be available.

Earlier, there was a 15% service tax on such coaching, while GST would now have to pay 18% tax.

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