Page 33 - GSTL_20th August 2020_Vol 39_Part 3

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Coaching classes not eligible to seek GST exemption : AAR
Coaching classes are not eligible to get any exemption from GST. This
position was reiterated by a recent ruling given by the Andhra Pradesh Bench of
the Authority for Advance Rulings (AAR). A similar stand has been taken earlier,
including by the Maharashtra Bench of the AAR. In other words, coaching clas-
ses have to levy and collect GST at 18% from students.
Relevant notifications give exemption to educational services, if these are
provided by an educational institution, subject to certain conditions. These are :
The service provided is related to education, the education is provided as a part
of a curriculum and it is provided for obtaining a qualification recognised by
law.
The applicant, Master Minds, was offering a variety of coaching courses
(regular, crash courses, revision exam courses) with different fee structures and
curriculum options to aspirants (students) of Chartered Accountancy and Cost
Accountancy streams.
The AAR Bench noted that such coaching is not mandatory to be con-
ferred an inter or final certificate by the Institute of Chartered Accountants and
the Institute of Cost Accountants, both of which are statutory bodies. The coach-
ing class was not issuing any coaching completion certificate or any study certifi-
cate, in respect of the Chartered Accountancy and Cost Accountancy courses.
Master Minds was not affiliated to or recognised or authorised by these
two professional institutions for imparting coaching or training. These profes-
sional institutions were themselves offering coaching and training to the aspir-
ants through their regional Councils or branches or certain accredited bodies, in
accordance with the prescribed curriculum.
Given the conditions, the AAR held that the coaching class was not eligi-
ble for the exemption provided by the GST notification. Likewise, charges col-
lected for providing accommodation and catering services to its students also
would not get the benefit of GST exemption.
[Source : The Times of India, New Delhi, dated 10-8-2020]

Faster disposal of seized goods : CBIC

The Government will fast track disposal of all unclaimed or seized goods
that are in possession of Customs Authorities over the next month starting Tues-
day. The Central Board of Indirect Taxes and Customs (C.B.I. & C.) will begin the
special drive since storage of hazardous or explosive materials have been
brought to its notice.
[Source : The Economic Times, New Delhi, dated 12-8-2020]

GST LAW TIMES  20th August 2020  33