The Rajasthan Authority of Advance Ruling (AAR) has ruled that educating and training physical, mental and spiritual practices of yoga attracts 18% GST.
Applicant, M/s Stonorti Marketplace Private Limited 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. 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.
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 15oo Hours.
The applicant has sought the advance ruling 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 coram of J.P.Meena (Central Tax) and M.S.Kavia (State Tax) has ruled that 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.
“We are of the view that the intention of the law maker in respect of entry No. 80 of the Notification No. 12/2017-CT(R) dated 28-06-2017, is to provide benefits of GST exemption to only those entities which are registered under Section 12AA of the Income Tax Act, 1961. This intention was also confirmed from the aforesaid circular No. 66/40/2018-GST dated 26.09.2018. As the applicant (as mentioned in their written submission) is not registered under Section 12AA of the Income Tax Act, 1961, therefore in light of above referred circular, we find that the applicant is not eligible to avail benefits of entry No. 80 of the Notification No. 12/2017-CT(R) dated 28-06-2017,” the coram noted.