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TMI Blog2022 (2) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... -2017. Further, as per circular No. 66/40/2018-GST dated 26.09.2018, only those services which provided by entity 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 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 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 the circular, 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 training or coaching of various courses of Yoga for consideration by the applicant is nothing but Physical well-being service and more sui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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 15oo 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 INTERPRETATION That the applicant contents that activities of educating and training physical, mental and spiritual practices of Yoga is a service and is ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ential element of human biology and psychology. Recreational activities are often done for enjoyment, amusement, or pleasure and are considered to be fun . From perusal of the broacher it is evident that all the types of Yoga are not discretionary in nature and a person who wants to learn Yoga of his / her choice may choose from the list offered by the applicant. The same cannot be prescribed but rather is chosen as per wish of the person wanting to get trained. That in case of Fast Arithmetic vs Asst. Commr. of C Ex ST, Mangalore reported in 2010 (17) S.T.R. 158 (Tri. - Bang.) it was held by the CESTAT that Words and Phrases - Recreation - When an activity' is done for enjoyment it is called recreation - Recreation need not be confined to playing some games or watching television and there are a wide variety of activities which could be called as recreational, [para 7] That thus on basis of above it is clear that training in Yoga can be a recreational activity. That third, Culture which an umbrella term which encompasses the social behaviour and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Yoga masters contributed their bit for the intellectual preservation and furtherance of this system through their treatises. According to Indian mythology, god Siva is the first teacher of this system. As per Yogic scriptures the practice of Yoga leads to the union of individual consciousness with universal consciousness and thus indicates a perfect harmony between these elements. The aim of Yoga is to realize the inner self, to mitigate or overcome all kinds of sufferings and to pave the way for attaining the state of liberation. The widely practiced Yoga Practices are Yama (five abstentions), Niyama (five observances), Asana (Postures), Pranayama (Suspending Breath), Pratyahara (Abstraction), Dharana (Concentration), Dhyana (Meditation), Samadhi (Fully integrated Consciousness), Bandhas (Lock) Mudras (Gestures), Shat-karmas (Cleansing practices), Yukta-ahara, (Holistic food), Yukta karma (Right Action) and Mantra japa (Chanting of the Sacred Words) etc. Yogic practices help millions to leam to maintain a balanced way of life. While at present Yoga is a Pan-Indian holistic physical and spiritual wellness system practiced throughout the geography of India, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is evident that yoga is a recreational activity and that it qualifies to be a part on Indian Culture being a traditional and time honoured Indian holistic system of personal, physical, mental and spiritual wellness focusing on all-round unification of body, mind and soul. That thus all the requirements of entry 80 (a) of the Notification No. 12/2017-CT dated 28.06.2017 have been duly satisfied. Thus the services supplied by the applicant are duly covered by the exemption from levy of GST. That further it is also brought on record the exemption given under entry 80(a) is qua the activity but not qua the status of service supplier. The same entry 80 of the notification no 12/2017-CT (Rate) dated 28.06.2017 has clause (b) which is applicable for specific service supplier i.e. entity which is registered under the provisions of Section 12AA of the Income Tax Act 1961. The said condition is disjunct to entry 80(b) only and has no bearing on the nature of activities covered under the entry 80(a) of the Notification No 12/2017-CT (Rate) dated 28.06.2017. That, on apparent reading of entry 80 of exemption notification as mentioned in Para 9, it is clear that services by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this notification, which includes advancement of religion, spirituality or yoga. The definition reads as:- SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition 1 Chapter 99 Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities. Nil Nil (r) charitable activities means activities relating to - (ii) advancement of religion, spirituality or yoga; That, entry 1 of the said notification exempts advancement of Yoga i.e. promoting, improving, spreading Yoga. That, since the applicant is not registered under section 12AA of the Income-tax Act, 1961, and is not involved in advancement or promotion of Yoga, entry 1 of the said notification shall not be applicable to him. That, on the contrary the services of educating and training physical, mental and spiritual practices of Yoga which may not be undertaken with the sole objective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not fulfill the meaning of Recreational activity relating to Culture Accordingly the benefit under Entry No. 80 of the Notification No. 12/2017-Central lax (Rate) dated 28.06.201 7 would not be available to the applicant. D. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 11.01.2022 through video conferencing. On behalf of the applicant CA, Shuchi Sethi appealed for PH. During the PH, she reiterated the submissions already made in the application. E. FINDINGS, ANALYSIS CONCLUSION: We have 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. 1. 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 Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalysis of aforesaid relevant entries are as under: 5.1 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-seei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght 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. 7. On the other hand, we find that the training or coaching of various courses of Yoga for consideration by the applicant is nothing but Physical well-being service and more suitably covered under Service Description Physical wellbeing including health club and fitness centre under Entry No. 711 of the Notification No. 11/2017-CT(R) dated 28-06-2017 and attracts GST @ 18% (9% CGST+ 9% SGST) as per Entry No. 35 of the Notification No. 11/2017-CT(R) dated 28-06-2017. 8.In view of the foregoing, we rule as follows: - 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 Rate 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 No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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