Private coachings for CA, CS, CMA etc. are not “educational institution”, liable to pay GST
In Re: Logic Management Training Institutes Pvt. Ltd. [Order No. AAAR/13/21 dated May 05, 2021] the Logic Management Training Institutes Pvt. Ltd. (“the Appellant”) appealed against the AAR, Kerala ruling wherein it was held that institutes imparting education to students for becoming Chartered Accountant (“CA”), Cost Accountancy, Company Secretary (“CS”), Certified Management Accountant (“CMA”) etc are not covered under the definition of “educational institution” in Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated June 28, 2017 (“Services Exemption Notification”).
AAAR, Kerala observed that the Appellant is not providing any elementary education or pre-school or upto higher secondary level or equivalent, not is it engaged in providing Education as part of approved vocational education course. Further, the Appellant is not issuing any certificate or degree and it is not mandatory for student to taking coaching from institutions like that of Appellant’s for becoming, CA, CS, CMA etc.
Hence, held that the Appellant cannot be categorized as ‘education institution’ and upheld the ruling of AAR, Kerala.
Further, clarified that conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications would be covered under the definition of “educational institution”, and training given by private coaching institutes would not be covered, as such training does not lead to grant of recognized qualification.