Is there going to be no service tax on coaching fees after GST?

Is there going to be no service tax on coaching fees after GST?

The exemption provisions under the new GST law is the same as under Service Tax,

Earlier exemption was provided for:

  • Services provided by any education institution to its students, faculty and staff.
  • Services by way of coaching or training for recreational activities related to arts, culture and sports.

Here educational institute means an institution engaged in providing services by way of:

  • Preschool education and higher Secondary education or equivalent
  • Education as a part of curriculum for obtaining any qualification recognised by any law for the time being in force
  • Education as a part of approved vocational course

As you can see coaching institutions except the ones covered under above provisions are not exempted and hence were taxable under Service Tax and will be continued to be taxed under GST.


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