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February 28, 2022

GST AAR Rajasthan: GST on educating & training physical, mental & spiritual practices of Yoga

by Mahesh Mara in GST, Legal Court Judgement

GST AAR Rajasthan: GST on educating & training physical, mental & spiritual practices of Yoga

Fact and Issue of the case

M/s Stonorti Marketplace Private Limited (hereinafter referred to as “applicant”), having its registered address as 153, Padmawati Colony A, Kings Road, Jaipur, Rajasthan, 302019 (GSTIN 08ABACSI676C1ZI) is engaged in educating and training physical, mental and spiritual practices of Yoga. The applicant is engaged in providing such services both virtually and physically. That the applicant offers 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. That the applicant also offers Yoga Teacher Training Courses, wherein the applicant is engaged in educating and training physical, mental and spiritual practices of Yoga to existing Yoga Practitioners. That the applicant charges fees from the students registering for one or more Yoga Courses. The duration of such courses may range from 30 Hours to 1500 Hours.

That the practices of Yoga are taught by instructors with the following qualifications:-

  • Diploma in Yoga, or
  • Graduates from a Recognized Institute, or
  • Yoga Certification Board Certified or Yoga Alliance Certified

That the applicant is desirous to know if the services of training and coaching students in Yoga is covered under entry 80(a) of the notification no. 12/2017-CT Rate dated 28.06.2017.

APPLICANT’S UNDERSTANDING

That in above case, supplying of services of educating and training of physical, mental and spiritual practices of Yoga is exempt under entry 80, Tariff 9996 of Notification No. 12/2017-Central Tax (Rate) dated 28-6-2017.

QUESTION(S) ON WHICH ADVANCE RULING IS SOUGHT

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-Central Tax (Rate) dated 28-6-2017 under entry number 80?

Observation of the Authority

The authority has considered the submissions made by the Applicant in their application for advance ruling. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. Based on the written submission made by the applicant, we find that the applicant is engaged in educating and training physical, mental and spiritual practices of virtually and physically. The applicant offers various courses of Yoga for improving mental and physical wellness. The applicant charges fees from the students registering for one or more Yoga Courses. The applicant is not registered under section 12AA of the Income-tax Act, 1961. In the present case, we have to decide 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-Central Tax (Rate) dated 28-6-2017 under entry number 80 or otherwise? In this regard, we are of the view that activity of offering of various courses of Yoga for improving mental and physical wellness for consideration in form of fees is covered under ‘supply’ as per section 7 of the CGST Act, 2017.

As far as taxability under section 9 of the CGST Act, 2017 on the said activity is concerned, we can visit relevant entries of notifications. In light of above, the entry 80 of the Notification No. 12- CT(R) dated 28-06-2017 can be sub-divided in sub-parts for better understanding.-

a. There should be activity of training or coaching

b. It should be in recreational activities

c. The said training or coaching should relate to art or culture

On gone through the aforesaid entry’ No. 80 of the 12/2017-CT( R) dated 28-06-2017, we are of the view that there should be training or coaching in recreational activities. Now, the ‘recreational activities’ may be discussed.

As per the Law Insider Dictionary’ “Recreation activity” means:

Recreational activity means any outdoor activity under- taken for the purpose of exercise, relaxation or pleasure, including practice or instruction in any such activity. “Recreational activity” includes hunting, fishing, trapping, camping, picnicking, exploring caves, nature study, bicycling, horseback riding, bird- watching, motorcycling, operating an all-terrain vehicle, ballooning, hang gliding, hiking, tobogganing, sledding, sleigh riding, snowmobiling, skiing, skating, water sports, sight-seeing, rock-climbing, cutting or removing wood, climbing observation towers, animal training, harvesting the products of nature, sport shooting and any other outdoor sport, game or educational activity.

5.2 Further, Entry No. 711 of the Notification No. 11/2017-CT(R) dated 28-06-2017 can be sub-divided in in sub-parts for better understanding.-

a. There should be Physical well-being services

b. including health club and fitness centre.

5.3 It is pertinent to mention here the relevant portion of circular No. 66/40/2018-GST dated

26.09.2018, which reads as under:- “The services provided by entity registered under Section 12AA of the Income Tax Act, 1961 by way of advancement of religion, spirituality or yoga are exempt. Fee or consideration charged in any other form from the participants for participating in a religious, Yoga or meditation programme or camp meant for advancement of religion, spirituality or yoga shall be exempt”.

Ruling

Question: 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?

Answer: NO, it is not exempted. It will be covered under service having description “Physical well-being including health club and fitness centre ” under service code 999723 and will attracts GST @ 18% (9% CGST+ 9% SGST) as per Entry No. 35 of the Notification No. 11/2017-CT(R) dated 28-06-2017.

Read the full order from below

GST-AAR-Rajasthan-GST-on-educating-training-physical-mental-spiritual-practices-of-Yoga

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