News Date: 19 August 2022

Key Pointers-

• Tutor Comp, which is based in the Infopark special economic zone in Kochi, offers online education services. It had asked AAR whether services offered to individual students one-to-one and providing education up to higher secondary school are exempt from GST.
• The company said service to individual students is liable for NIL rate as it is provided under the notification issued by the Center in 2017. The notification described an educational institution as one which provides services by way of pre-school education and education up to higher secondary school or equivalent; education as part of the curriculum for obtaining a qualification recognized by any law in force; education as a part of an approved vocational education course.
• The company referred to various cases to claim that it is an educational institution.
• The AAR, however, observed that the company is not a formal school but an institution providing special training/coaching to students enrolled in formal schools for education up to higher secondary or equivalent. Even though the activities undertaken by the company can be claimed to be education services in layman’s understanding, those do not qualify as activities prescribed under the notification.
• On the contrary, the services offered by the company are appropriately classifiable under commercial training and coaching services and as such the company is not eligible for exemption under GST, the AAR ruled.

Source:https://www.business-standard.com/article/economy-policy/online-education-firms-net-exempt-from-gst-clarifies-kerala-aar-122081900580_1.html