Gstr 4 rate for coaching classes

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This discussion addresses whether coaching centres can opt for the GST composition scheme and its applicable rate. The consensus is that the composition scheme, with a 6% GST rate, is generally more advantageous for coaching institutes. This is because it allows them to remain competitive by charging less to students, as opposed to the regular scheme where charging GST might deter students and input tax credit benefits are limited for service providers.

Nanu Gupta

Nanu Gupta (Querist)
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11 August 2023 A coaching center wishes to know whether he can opt for composition scheme. And what would be the gst rate of composition scheme for such coaching Institute.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2023 For composition scheme GST 6% applicable.

Nanu Gupta

Nanu Gupta (Querist)
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11 August 2023 Also pls guide whether for him regular scheme would be better or composition scheme? As under regular if he will charge gst from students might reduce the number of students and itc claim would also be less as he provides coaching so regular itc will not be there

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 August 2023 Composition scheme better as you will be competitive with more students.

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