CA, CMA Coaching Institutes are not exempted from GST: AAR

CA, CMA Coaching Institutes are not exempted from GST: AAR

The Andhra Pradesh Authority of Advance Ruling (AAR) ruled that Supply of services of education to students for obtaining qualifications of CA and ICWA exams are not exempted services under Entry no.66 of Notification No.12/2017-Central Tax (Rate) dated June 28, 2017, as amended by Notification No.2/2018-Central Tax (Rate) dated January 25, 2018. The ruling would be a relevant one to the Institutes and CA CMA aspirants as the levy of tax would play a major role in determining the fee structure. The applicant, M/s Master Mind is a proprietary firm and a leading educational institution providing coaching to students for Chartered Accountancy certificate (CA); Cost and Works Accountancy Certificate (ICWA), and Intermediate Certificate.

The coaching provided by the applicant enables the students to appear for the examinations conducted by the respective statutory bodies i.e., Intermediate (Higher Secondary Education), Chartered Accountancy Course consisting of three levels in CA Foundation Course (earlier referred as CPT), CA-Intermediate (IPCC) Course and CA-Final Course, and Cost Management Accountancy (Consisting of three levels i.e. CMA Foundation Course, CMA-Intermediate Course, and CMA-Final Course) and to obtain the necessary qualifications.

The applicant has sought advance ruling on the issue whether the services of supply of service of education as per the curriculum prescribed by the statutory authorities/ government to the students of the applicant for obtaining qualifications/ certificates of CA-Foundation, CA-Inter, CA-Final, CMA (ICWA) Foundation, CMA-Inter, CMA-Final and Intermediate duly recognized by the respective statutory authorities/ government are exempted under Notification No.12/2017-CT (Rate) dated June 28, 2017, Entry no.66(a), as amended.