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2018 (10) TMI 301 - AAR - GSTExemption from GST - training or coaching - recreational activities or not - UCMAS (Universal Concept Mental Arithmetic System) - The activity provided by UCMAS using abacus whether qualifies for exemption from the payment of GST? Held that:- As per Sl. No. 80 of Notification No. 12/2017-Central Tax (Rate) exempts services by way of training or coaching in recreational activities relating to arts or culture or sports. (In case of training or coaching in recreational activities relating to sports, exemption is admissible only when such services are by charitable entities registered under section 12AA of the Income-tax Act) - The words ‘recreational activities’ and ‘arts’ have not been defined in the GST Acts or Notifications issued thereunder. As per the dictionary meaning, ‘Art’ is the expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power - The improvement of speed and accuracy of calculations or development of mental capabilities, such as, concentration, observation, visualization, imagination and memory cannot be said to fall within the meaning of ‘Art’. It is evident from the dictionary meaning of the term ‘Art’ as well as from the relevant entries of the scheme of classification of services, as reproduced above, that the activities of the applicant do not fall within the term ‘Art’. Therefore, the exemption provided vide Sl. No. 80 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017 and corresponding Notification issued under the GGST Act, 2017 and Sl. No. 83 of Notification No. 9/2017-Integrated Tax (Rate) issued under the IGST Act, 2017 is not admissible to the activities of the applicant - Further, the training imparted by the applicant to create interest in students for more advance form of mathematics so as to enhance their thinking capacity and mental development or employing methods of play involving Musical, Visual and specialized effects does not make the activities of the applicant as the training or coaching in recreational activities. Ruling:- M/s. Omnisoft Technologies Private Limited is not entitled to the exemption provided vide Sl. No. 80 of Notification No. 12/2017Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017 and corresponding Notification issued under the GGST Act, 2017 and Sl. No. 83 of Notification No. 9/2017-Integrated Tax (Rate) issued under the IGST Act, 2017. Hence the activity provided by UCMAS using abacus does not qualify for exemption from the payment of Goods and Services Tax.
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