In the GST regime, certain services relating to education, training, arts, culture, sports, and yoga are exempt from tax if specific conditions are met. These exemptions are mainly covered under Notification No. 12/2017-Central Tax (Rate), particularly under Entry No. 1 and Entry No. 63A.
A. Entry No. 1 – Services by Charitable Entities
Entry 1 of Notification No. 12/2017 – Central Tax (Rate)
“Services by an entity registered under Section 12AA or 12AB of the Income-tax Act, by way of charitable activities.”
GST Rate: NIL
√ Covered Charitable Activities:
As per the notification, “charitable activities” include:
- Advancement of yoga
- Advancement of religion or spirituality
- Advancement of educational programs or skill development
- Advancement of art or culture
- Public health and medical relief
- Relief of the poor, disadvantaged, or physically disabled
Conditions:
- Entity must be registered under Section 12AA or 12AB of the Income Tax Act.
- Activity must fall under the definition of charitable activity as defined in the notification.
B. Entry No. 63A – Training/Coaching Services
Entry 63A of Notification No. 12/2017 – Central Tax (Rate)
“Services by way of training or coaching in—
(a) recreational activities relating to arts or culture, by an individual, or
(b) sports by charitable entities registered under section 12AA or 12AB of the Income-tax Act.
GST Rate: NIL
Note:
Entry 63A – What It Says:
It specifically exempts:
“Training or coaching in recreational activities relating to arts or culture by an individual.”
So the exemption is limited to recreational arts/culture activities — like music, dance, painting, drama, sculpture, etc.
Why Yoga is not included under “arts or culture”?
a. Yoga is treated as a spiritual or health discipline:
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- Yoga is not considered a recreational art or cultural performance.
- It is seen as a practice aimed at mental, physical, and spiritual well-being.
- Therefore, yoga is classified under “advancement of religion or spirituality or yoga”, which is a charitable activity, not an artistic one.
b. Separate Treatment in GST Notification:
-
- In Entry 1 of Notification 12/2017, “advancement of yoga” is explicitly listed as a separate charitable activity — distinct from “advancement of art or culture”.
So the law recognizes yoga as important — but under charitable/religious/spiritual heads, not under art or culture.
c. Interpretation in Law and Precedents:
-
- Several tax rulings and CBIC FAQs make a clear distinction between:
- Yoga (as a discipline with health/spiritual benefits), and
- Arts & culture (as recreational, expressive, or performative forms).
- Several tax rulings and CBIC FAQs make a clear distinction between:
So, for GST, yoga cannot be clubbed with arts or culture unless the notification is amended.
♦ Definition of “Yoga” in Indian Laws
√ The Constitution of India – Article 51A (h)
It promotes the development of the scientific temper, humanism and the spirit of inquiry and reform — yoga is implied as part of India’s spiritual heritage.
√ The National AYUSH Mission & Ministry of AYUSH
The Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy) defines yoga as:
“A group of physical, mental, and spiritual practices or disciplines which originated in ancient India.“
So yoga is clearly treated as a health + spiritual discipline, not as a recreational art.
√ Explanation under Income Tax (CBDT Circular No. 01/2016)
The CBDT clarified that:
“Advancement of yoga” is a charitable purpose under Section 2(15) of the Income Tax Act.
Thus, yoga is not treated as art or culture but a distinct charitable object.
♦ Definition of “Arts and Culture” in Indian Context
There’s no single codified definition of “arts and culture” under one Act, but we find references in multiple places:
√ HRD Ministry / UGC / NAAC guidelines:
“Arts and Culture” broadly includes:
- Visual Arts (painting, sculpture)
- Performing Arts (music, dance, drama)
- Literature
- Folk, tribal and classical traditions
- Traditional crafts
- Heritage practices
√ UNESCO definition (adopted in policy frameworks in India):
Culture includes: “Distinctive spiritual, material, intellectual and emotional features of society or a social group… art, literature, lifestyles, ways of living together, value systems, traditions and beliefs.”
Hence, arts and culture in India are interpreted to include:
- Traditional and classical art forms (e.g., Bharatanatyam, Carnatic music)
- Folk arts, theatre, heritage activities
- Literary and linguistic traditions
♦ These activities are often funded by institutions like Sangeet Natak Akademi, Lalit Kala Akademi, IGNCA, etc.
But yoga is not categorized under these forms in government cultural promotion schemes — it is supported by AYUSH and health/wellness schemes.
Summary:
| Term | Legal Reference or Meaning | Governing Body | Under GST |
| Yoga | Health + Spiritual Practice (AYUSH, CBDT) | Ministry of AYUSH | Exempt if by charitable trust (Entry 1) |
| Arts | Painting, Dance, Music, Drama, etc. | Ministry of Culture / HRD | Exempt if by individual (63A) or trust (Entry 1) |
| Culture | Heritage, folk traditions, language, literature | Ministry of Culture / UNESCO | Part of recreational activities |
Levy under GST Act:
1. Art & Culture Training Institutes
- If an individual offers art or culture coaching (e.g., Bharatanatyam, Carnatic music, painting), the service is exempt under Entry 63A(a).
- If a trust registered under Section 12AB offers these as part of charitable activity, it is exempt under Entry 1.
- If a private institute or company offers such classes commercially, GST is applicable.
2. Yoga Training Institutes
- Yoga is considered a charitable activity under GST when conducted by a 12AA/12AB-registered trust.
- Such yoga services are exempt under Entry 1.
- However, yoga training by individuals or businesses not registered as charitable entities is taxable under GST.
- Yoga is not covered under Entry 63A, so individuals teaching yoga are not exempt unless through a charitable trust.
3. Sports Coaching Centres
- Coaching in sports is exempt under Entry 63A(b) only if provided by charitable trusts registered under 12AA/12AB.
- Coaching by individuals or companies in sports is not exempt.
- Sports academies run as business concerns are taxable.
4. Comparison Table
| Activity | By Individual | By 12AA/12AB Entity | By Business Entity |
| Art & Culture Coaching | Exempt (63A) | Exempt (Entry 1) | Taxable |
| Yoga Classes | Not exempt | Exempt (Entry 1) | Taxable |
| Sports Coaching | Not exempt | Exempt (63A) | Taxable |
Conclusion
GST exemption is available to:
- Individuals offering training in arts and culture (63A),
- Charitable entities providing sports coaching (63A),
- Charitable trusts promoting yoga, art, or culture as part of their charitable objectives (Entry 1).
If you run a training institute, review your registration status and type of service to determine GST applicability.
Commercial training centers not registered under 12A/12AB will not enjoy GST exemption under these entries.
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