• Notification Date: 25-02-2022
• Notification No: N/A

Coaching Centers Liable to 18% GST on Composite Supply

The Central Board of Indirect Taxes and Customs (CBIC) has declared that the coaching institutions are liable to pay 18% Goods and Services Tax (GST) on composite supply as well as on the supplies to the students.

According to the CBIC Chairman, VivekJohri, the coaching institutions charge a heavy sum of fees from the students for coaching. Besides, the institutions pay GST only on individual items like bags, stationery items, and T-shirts. The GST rates on these items are quite low which is resulting in suppressed payment. Johri stated in weekly communication with field officers that the coaching institutions are liable to pay GST that falls under the category of bundled services. These kinds of services are categorized as ‘Composite Supply’ and they are liable to 18% of GST. In support of his statement, VivekJohri referred to a tax evasion case amounting to Rs.3.6 crores. The case was detected by the Alwar CGST Commissionerate.