Education And Training In Physical, Mental, Spiritual Practices Of Yoga Attracts 18% GST: AAR
Mariya Paliwala
2 March 2022 4:07 PM GMT
The Rajasthan Authority of Advance Ruling (AAR) has ruled that 18% of Goods and Service Tax (GST) is payable on education and training in physical, mental, spiritual practices of Yoga.The applicant has been offering various courses of Yoga such as Fitness Yoga, Immunity Boost Yoga, Pregnancy Yoga, Nidra Yoga, Stress Management Yoga, Meditation, and other such courses for improving mental...
The Rajasthan Authority of Advance Ruling (AAR) has ruled that 18% of Goods and Service Tax (GST) is payable on education and training in physical, mental, spiritual practices of Yoga.
The applicant has been offering various courses of Yoga such as Fitness Yoga, Immunity Boost Yoga, Pregnancy Yoga, Nidra Yoga, Stress Management Yoga, Meditation, and other such courses for improving mental and physical wellness. Further, the applicant is engaged in educating and training physical, mental and spiritual practices of Yoga to existing Yoga Practitioners. The applicant charges fees from the students registering for one or more Yoga Courses.
The advance ruling was sought on the issue whether the services supplied by the applicant by way of educating and training physical, mental and spiritual practices of Yoga is exempted under Notification No. 12/2017- CT(R) dated 28-06-2017 under entry number 80.
The two member bench of J.P.Meena (Central Tax) and M. S. Kavia (State Tax) has observed that services by way of training or coaching of various Yoga courses by applicant for consideration, is not exactly for "Recreation activity" whereas the same is for 'Physical well-being activities' and hence, it is not covered under entry No. 80 of the Notification No. 12/2017-CT(R) dated 28 June 2017. Further, as per circular No. 66/40/2018-GST dated 26, September 2018, only those services which are provided by entities registered under Section 12AA of the Income Tax Act, 1961 by way of advancement of religion, spirituality or yoga, are exempt. The essence of the said circular is to provide exemption in respect of services of advancement of yoga to only those entities who registered under Section 12AA of the Income Tax Act, 1961.
The AAR noted that the intention of the law maker in respect of entry No. 80 of the Notification No. 12/2017-CT(R) is to provide benefits of GST exemption to only those entities which are registered under Section 12AA of the Income Tax Act, 1961. As the applicant is not registered under Section 12AA of the Income Tax Act, 1961 is not eligible to avail benefits of entry No. 80 of the Notification No. 12/2017-CT(R) dated June 28, 2017.
The Authority ruled that education and training in physical, mental, spiritual practices of Yoga will be covered under service having description "Physical well-being including health club and fitness centre" under service code 999723 and will attracts 18% GST as per Entry No. 35 of the Notification No. 11/2017-CT(R) dated 28, June 2017.
Name Of Applicant: M/s Stonorti Marketplace Private Limited
Advance Ruling Number: RAJ/AAR/2021-22/37
