In re Simple Rajendra Shukla (GST AAR Maharashtra)
Whether Services related to providing coaching for entrance exam will come in the ambit of GST?
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
1. The applicant Simmple Rajendra Shukla has filed the application under section 97 of the Maharashtra Goods and Services Tax Act, 2017 and requested to decide the question “whether the services related to providing the coaching for entrance examination will come in the ambit of Goods and Service Tax.
2. Fact of the case:‑
The applicant runs Simmple Shukla Tutorials and is thus engaged in providing the service of teaching to the students of Class Xlth and XIIih science. This activity prepares the students for entrance examinations related to MBBS, Engineering and other science related examinations.
3. The contention of the applicant:-
3.1 The applicant has stated that the activity is covered by the Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017 vide S.No.66, Heading 9992 as described “Services provided by an educational institution to its students wily be taxed at Nil rate with condition Marked “NIL”.
3.2 The applicant has argued that the word “Education” and “institution” has not been defined in GST Act. However, the dictionary meaning of Education means “Imparting of knowledge”. The word institution as per dictionary meaning means an organization formed to provide services.Therefore in the layman’s language the word education institution means an organization formed to impart educational services. The rendering of educational services falls under the chapter heading of 9992.
4. The legal position, Analysis and Discussion
The charging section 9(1) of MGST and CGST ACT, 2017 provides for levy and collection of state tax and central tax on goods and services on all intra-State supplies of goods or services or both. except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. Accordingly the State and central government have issued the notification for levy of tax. The provisions for implementing the CGST ACT and MGST ACT, 2017 are similar.
Now we sequentially discuss the provisions that are applicable in the present case—
The taxability of education services is as per notification no. 11/2017 Central Tax (Rate) which is reproduced as under —
4.1 G.S.R. 690(E) – In exercise of the powers conferred by sub-section (1) of section 9, subsection (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of services of description as specified in column (3) of the Table below, falling under Chapter, Section or Heading of scheme of classification of services as specified in column (2), shall be levied at the rate as specified in the corresponding entry in column (4), subject to the conditions as specified in the corresponding entry in column (5) of the said Table:-
Table
