Entrance exam coaching centers to come under 18% GST slab
The Coaching Center, which prepares students for entrance examination, will have to give 18 percent GST. The Authority for Advanced Routing (AAR) has cleared this.
An application was filed in front of the Maharashtra Bench of AAR. It was asked that would the the entrance exam coaching centers come under the Goods and Services Tax (GST) or not? While clarifying the picture on this, the AAR said that it will come under the purview of GST and it will be 18 percent GST.
This petition was filed in the court of Maharashtra by Simple Shukla Tutorial. This class works to impart education to the 11th and the 12th standard students.
Apart from this, students are also helped to prepare MBBS, Engineering and Science related examinations. On this AAR had said that it does not come under GST because it does not get involved in the definition of the Educational Institution.
AAR said that private educational institutions, where no degree is given and no certificate is given. Such institutions will be set up with 9 percent central GST and 9 percent state GST. At this stage, 18 percent GST will be imposed on coaching institutions.Under GST the tax is divided equally between center and the states.
