ARA, Rajasthan has pronounced Ruling on 25.1.2022, in the case of Stonorti Marketplace Pvt. Ltd. (2022) 37 J.K.Jain’s GST & VR 130, that;
‘Educating and training physical, mental and spiritual practices of Yoga’ are classifiable under Physical well-being including health club and fitness centre” Services under HSN code 999723 and liable to 18% GST.
Background.─The applicant is engaged in educating and training physical, mental and spiritual practices of virtually and physically. The applicant offers various courses of Yoga for improving mental and physical wellness. The applicant charges fees from the students registering for one or more Yoga Courses. The applicant is not registered u/s 12AA of the Income Tax Act, 1961.
Findings by ARA.─In the present case, The ARA have to decide whether the services supplied by the applicant by way of educating and training physical, mental and spiritual practices of Yoga is exempted under notfn No 12/2017-CT(R) dated 28.6.2017 under entry number 80 or otherwise?
In this regard, the ARA are of the view that activity of offering of various courses of Yoga for improving mental and physical wellness for consideration in form of fees is covered under ‘supply’ as per S.7, CGST Act, 2017.
As far as taxability u/s 9 CGST Act, 2017 on the said activity is concerned, the relevant entries of notfns, are as under:–
4.1 Entry No.80 of the notfn No 12/2017-CT(R) dated 28.6.2017 reads as:
| S.No. | Heading | Description of Services | Rate |
| 80 | Heading 9996 | Services by way of training or coaching in recreational activities relating to (a) arts or culture, or (b) sports by charitable entities registered u/s 12AA, Income-tax Act. | Nil |
4.2 Entry No.35 of notfn 11/2017-CT(R) dated 28.6.2017 reads as:
| S.No. | Heading | Description of Services | Rate |
| 35 | Heading
9997 |
Other services (washing, cleaning and dyeing services; beauty and physical well-being services; and other miscellaneous services including services nowhere else classified) | 9 |
4.3 Entry No. 711 of notfn 11/2017-CT(R) dated 28.6.2017 reads as:
Scheme of classification of services
| S.No. | Heading | Service code | Service Description |
| 711 | 9972 | 999723 | Physical well-being services including health club and fitness centre. |
Analysis by ARA.─The analysis of aforesaid relevant entries are as under:
28. i) In light of above, the entry 80 of notfn No 12/2017-CT(R) dated 28.6.2017 can be sub-divided in sub-parts for better understanding.
29. There should be activity of training or coaching
30. It should be in recreational activities
31. The said training or coaching should relate to art or culture
32. ii) On gone through the aforesaid entry No. 80 of notfn No 12/2017-CT(R) dated 28.6.2017, the ARA are of the view that there should be training or coaching in recreational activities. Now, the ‘recreational activities’ may be discussed.
As per the Law Insider Dictionary “Recreation activity” means:
Recreational activity means any outdoor activity under- taken for the purpose of exercise, relaxation or pleasure, including practice or instruction in any such activity. “Recreational activity” includes hunting, fishing trapping, camping, picnicking. exploring caves, nature study, bicycling horseback riding, bird-watching, motorcycling, operating an all-terrain vehicle, ballooning, hang gliding, hiking, tobogganing, sledding, sleigh riding, snowmobiling, skiing, skating, water sports, sight-seeing, rock climbing, cutting or removing wood, climbing observation towers, animal raining, harvesting the products of nature, sport shooting and any other outdoor sport, game or educational activity.
iii) Further, Entry No. 711 of the notfn 11/2017-CT(R) dated 28.6.2017 can be sub-divided in sub-parts for better understanding.
There should be Physical well-being services
including health club and fitness centre.
iv) It is pertinent to mention here the relevant portion of circular No. 66/40/2018-GST dated 26.9.2018, which reads as under:
“The services provided by entity registered u/s 12AA, Income Tax Act, 1961 by way of advancement of religion, spirituality or yoga are exempt. Fee or consideration charged in any other form from the participants for participating in a religious, Yoga or meditation programme or camp meant for advancement of religion, spirituality or yoga shall be exempt”.
Conclusion by ARA.─In view of above both the entry No. 80 of the notfn No 12/2017-CT(R) dated 28.6.2017 and entry No. 711 of the notfn 11/2017-CT(R) dated 28.6.2017, we are of the view that services by way of training or coaching of various Yoga courses by applicant for consideration, is not exactly for ‘Recreation activity” whereas the same is for Physical well-being activities’ and hence, it is not covered under entry No. 80 of the notfn No 12/2017-CT(R) dated 28.6.2017. Further, as per circular No. 66/40/2018-GST dated 26.9.2018, only those services which provided by entity registered u/s 12AA, Income Tax Act, 1961 by way of advancement of religion, spirituality or yoga, are exempt. The essence of the said circular is to provide exemption in respect of services of advancement of yoga to only those entities who registered u/s 12AA, Income Tax Act, 1961.Thus, we are of the view that the intention of the law maker in respect of entry No. 80 of the notfn No 12/2017-CT(R) dated 28.6.2017, is to provide benefits of GST exemption to only those entities which are registered u/s 12AA, Income Tax Act, 1961. This intention also confirmed from the aforesaid circular No. 66/40/2018-GST dated 26.9.2018. As the applicant (as mentioned in their written submission) is not registered u/s 12AA, Income Tax Act, 1961, therefore in light of above referred circular, we find that the applicant is not eligible to avail benefits of entry No. 80 of the notfn No 12/2017-CT(R) dated 28.6.2017
On the other hand, we find that the training or coaching of various courses of Yoga for consideration by the applicant is nothing but “Physical well-being service and more suitably covered under Service Description “Physical well-being including health chub and fitness centre” under Entry No. 711 of the notfn 11/2017-CT(R) dated 28.6.2017 and attracts GST @ 18% (9% CGST+ 9% SGST) as per Entry No. 35 of the notfn 11/2017-CT(R) dated 28.6.2017.
Ruling by ARA.─In view of the foregoing, the ARA ruled rule as follows:–
Question: Whether the services supplied by the applicant by way of educating and training physical, mental and spiritual practices of Yoga is exempted under notfn No 12/2017-CT(R) dated 28.6.2017 under entry number 80?
Answer: No, it is not exempted. It will be covered under service having description “Physical well-being including health club and fitness centre” under service code 999723 and will attracts GST @18% as per Entry No. 35 of the notfn 11/2017-CT(R) dated 28.6.2017
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