GST on Coaching Classes Upheld as Taxable Due to Non-Recognition as Educational Institution

In re Sanjaykumar Ishwerlal Sadadiwala (GST AAR Gujarat)

Summary : The applicant, a proprietor of a coaching institute, is engaged in providing academic coaching to students from Standards 5 to 12 enrolled in schools affiliated with recognized boards such as GSEB and CBSE. The services offered include supplementary education in school subjects aimed at improving academic performance through additional practice, conceptual clarity, and exam preparation. The applicant sought an advance ruling on whether such coaching services qualify as exempt “education services” under Entry 66 of Notification No. 12/2017-Central Tax (Rate) or are taxable as “commercial coaching services” under SAC 999293 at 18%.

The applicant argued that their services contribute to education, which is a fundamental right, and emphasized the social importance of making education accessible. They contended that supplementary coaching supports students in achieving better results and should not be taxed, especially for students up to the higher secondary level.

The Authority for Advance Ruling examined the relevant provisions of the GST law, including Notification No. 12/2017-Central Tax (Rate) , which grants exemption to services provided by an “educational institution.” The definition of “educational institution” includes entities providing pre-school education, education up to higher secondary level, education as part of a recognized curriculum, or approved vocational education courses.

The Authority found that the applicant’s services constitute “supplementary education,” meaning additional instruction provided alongside regular schooling. Such services are intended to support and enhance school education through personalized guidance, doubt-solving, and exam preparation. However, these services are not part of the formal curriculum prescribed by law and are not delivered by an institution recognized as an “educational institution” under the notification.

Since the exemption under Entry 66 applies only to services provided by qualifying educational institutions, the Authority held that the applicant does not meet the definition and therefore cannot claim exemption. The services were also found not to be covered under any other exempt category in Notification No.12/2017.

The Authority then examined Notification No. 11/2017-Central Tax (Rate) , which governs taxable services. It determined that the applicant’s services fall under “Education Services” classified under Heading 9992. More specifically, they fall within Group 99929, covering “Other education and training services,” and are classified under Service Code 999293 as “commercial training and coaching services.”

Accordingly, the Authority ruled that the coaching services provided by the applicant are taxable at 18% GST (9% CGST and 9% SGST). The claim for exemption as “education services” was rejected on the ground that the applicant does not qualify as an educational institution under the relevant notification.

FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT

M/s. Sanjaykumar Ishwerlal Sadadiwala, Plot No.201-202A, 202B, 203D, 205D, 301D & 305D, Sumel flats, 2nd & 3rd floor, Tadwadi, Rander road, Adajan, Surat-395009 [for short — `applicant’], the proprietor of Friends Classes is registered under GST and their GSTIN is 24AFXPS2660E1Z4.

2. The applicant is engaged in imparting academic coaching to students enrolled in schools affiliated with recognized education boards (GSEB/CBSE) and is seeking an Advance ruling on the taxability of coaching services provided to Students of Standards 5 to 12 of GSEB and CBSE curriculum. The institute provides supplementary education in subjects taught in school to help students improve their academic performance. Details of education levels served by the applicant arc as under:

3. The question raised by the applicant is as under:

“1. Whether the academic coaching services provided by Friends Classes, Surat to students of Standards 5 to 12 (GSEB/CBSE curriculum) are exempt under Entry 66 of Notification No. 12/2017-Central Tax (Rate) CTR as “education services” or are taxable @18% under SAC 999293 as “commercial coaching services?”

4. Personal hearing was granted on 08.04.2026 wherein Shri Bhavesh D. Saraiya, C.A., appeared on behalf or the applicant and reiterated the facts & grounds as stated ‘in the application. The representative has also submitted additional reply on 08.04.2026 by the applicant, which, in brief is as under:

(i) They have established their tuition classes i.e. “Friend Classes” on 1st July, 1984 and have been conducting classes in this institute very well for the students of Std. 5 to 12 for the last 42 years with the motive of providing best education.

(ii) School teaching is necessary and compulsory. Schools teach their subjects in the best possible manner and although students get best education in school, they need more practice, conceptual learning and best results and for that purpose, the students join the extra tuition classes that genuinely provide the basic service of education.

(iii) Education is the fundamental right of each and every child, that formal education up to Std. 12′ is very much necessary and that present scenario is such that there are so many private schools and government schools, granted and non-granted schools with dissimilar fees ratio.

(iv) Education is the fundamental right of every individual and is the best form of social service that converts a student into a serviceable loyal citizen of the nation.

(v) high cost affect’s-the quality education and makes it less accessible to the low-income and middle-income groups to enter top institutions worsening success inequalities. Specialized education and skill-based courses are at high cost, discouraging skill development efforts outside the traditional formal system for economically weaker sections.

(vi) No student should be deprived of getting equal opportunity just because of high cost of education.

(vii) They firmly believe that taxes must not apply on any educational institutions for the students of up to 12t^h all over India.

Discussion and findings

5. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.

6. We have considered the submissions made by the applicant in their application for advance ruling, as well as the submissions made, both oral and written, during the course of the personal hearing, and also the submissions made by the Assistant Commissioner of State Tax, Unit 57, Surat. We have also considered the issue involved, the relevant facts & the applicant’s submissions/views in respect of question on which the advance ruling is sought.

7. The applicant wants to know whether the academic coaching services provided by Friends Classes, Surat to students of Standards 5 to 12 (GSE13/CBSE curriculum) are exempt under Entry 66 of Notification No. 12/2017-Central Tax (Rate) ,CTR as “education services” or arc taxable @,18% under SAC 999293 as “commercial coaching services. For the purpose, it becomes obligatory to refer to the relevant Notifications of the Good and Services Tax Act, 2017. We find that No. 12/2017- Central Tax (Rate), dated the 28th June, 2017, contains a comprehensive list of services which are exempted from the Goods and Services Tax. Entry No.66 of No. 12/2017- Central Tax (Rate), dated the 28th June, 2017, (as amended) reads as under:

I TO BE PUBLISHED IN THE GAZ7,1TE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)1

Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 12/2017- Central Tax (Rate)

New Delhi, the 28th June, 2017.

G.S.R….. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:-

From the above, we find that the exemption in Entry No.66 of No. 12/2017- Central Tax (Rate), dated the 28th June, 2017 is available only to the services provided by an educational institution to its students, faculty and staff. It therefore becomes necessary to refer to the definition of “Educational institution” as mentioned in the aforementioned Notification. “Educational Institution” has been defined at para-2(y) of the aforementioned notification and reads as under:

(y) “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 recognised by any law for the time being in force;

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

8. We find that the applicant is engaged in imparting academic coaching to students enrolled in schools affiliated with recognized education boards (GSEB/CBSE) i.e. supplementary education in subjects taught in school to students studying in classes 5 to 12 (falling in the age group 11-18 years) in order to help them improve their academic performance. As per Oxford Learner’s Dictionaries, “supplementary” means provided in addition to something else—often to improve, complete, or support it. Therefore, supplementary education refers to additional training, courses, or learning materials that complement mainstream schooling or training to further develop skills or knowledge. As per Merriam-Webster Dictionary, “supplementary” means added or serving as a supplement; additional. Therefore, in the context of school, supplementary education refers to educational activities or resources that provide additional instruction or support beyond the standard school curriculum and regular school day. We therefore find that the supplementary education provided by the applicant is essentially extra tuition for school students, where they receive personalized academic support, help with clearing doubts, and structured exam preparation. These classes use customized study materials to improve students’ grades and confidence, offer learning at a pace suited to each student, and help them better understand subjects by filling the gaps left during regular school hours. Further, the applicant themselves have submitted that although students get the best education in school, they need more practice, conceptual learning and best results and for that purpose, the students join their extra tuition classes that genuinely provide the basic service of education.

9. In view of the above, we find that the supplementary education provided by the applicant is NEITHER pre-school education and education up to higher secondary school or equivalent NOR education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force NOR `education as a part of an approved vocational education course’ and is therefore not covered under the definition of “Educational Institution” as defined under Para-2(y) of No. 12/2017- Central Tax (Rate), dated the 28th June, 2017. Since, the exemption under Entry No.66 of the aforementioned Notification is available only to ‘Educational Institutions’ as discussed earlier, the said exemption is not available to the applicant as it is not covered under the definition of ‘Educational Institution’. We also find that the said service provided by the applicant is not covered under any of the chapter, section or headings under the No. 12/2017- Central Tax (Rate), dated the 28th June, 2017 which implies that no exemption is available to the services provided by the applicant under the said Exemption notification.

10. We further find that No. 12/2017- Central Tax (Rate), dated the 28th June, 2017 contains a comprehensive list of services which are taxable under the GST regime. We also find that all the services are covered/classified under Chapter 99 in the GST regime. On going through the said list, we find that the services provided by the applicant would be aptly covered under the head ‘Education Services’ falling under Entry No.30 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017. Entry No. 30 to No. 12/2017- Central Tax (Rate), dated the 28th June, 20177 reads as under:

I TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)1

Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 11/2017- Central Tax (Rate)

New Delhi, the 28th June, 2017.

G.S.R……. (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:-

11. We also find that the said services arc liable to tax at 9% CGST + 9% SGST (total GST 18%). Further, on going through the Annexure attached to the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, we find that “Education Services” is appearing under Section 9 (Sr.No.559) at Sr.No.581 (Heading 9992) in the Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 7 and reads as under

12. On going through the above annexure, we find that the ‘Education Services’ provided by the applicant would be covered under Group 99929 (Sr.No.596) under “Other education and training services and educational support services” and specifically covered under Entry No.599 ( Service Code (Tariff) 999293) under “Commercial training and coaching services” and liable to GST @ 18% (9% CGST + 9% SGST).

13. In view of the above, we rule as under: –

RULING

0.1 Whether the academic coaching services provided by Friends Classes, Surat,,,.. to students of Standards 5 to 12 (GSE13/C13SE curriculum) are exempt under tr)11₃,^–} 66 of Notification No. 12/2017-Central Tax (Rate) CM as “education services” or are taxabk 18% under SAC 999293 as “commercial coaching services?

A.I The academic coaching services provided by Friends Classes, Surat to students of Standards 5 to 12 (GSEB/CBSE curriculum) are covered under “Education Services” at Sr.No.30 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 falls under Entry No.599 ( Service Code (Tariff) 999293) of Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as “commercial training and coaching services” and is liable to GST at 18% (9% CGST + 9% SGST).