CBIC: Coaching centres must pay 18% GST on composite supply

Coaching Institutes are liable to pay 18% goods and services tax (GST) on their composite supply, or bundled services and supplies to students, the Central Board of Indirect Taxes and Customs (CBIC) has said.

While coaching institutes charge a lumpsum amount from students, they have been depositing GST on individual items such as bags, stationary, and T-shirts whereby GST rates are lower, resulting in suppressed payment, it said. “These types of bundled services fall under the category of ‘Composite Supply’ and attract 18 % GST,” CBIC chairman Vivek Johri said in a weekly communication field officers. He also cited a case of tax evasion amounting to ₹3.6 crore detected by the Alwar CGST Commissionerate.

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