Tution class income

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This query is : Resolved

Quick Summary

A business owner registered for GST with a turnover of £42 lacs, who also runs part-time coaching classes earning an additional £2 lacs annually, is seeking clarification on GST liability for the coaching income. The consensus is that once registered for GST, all income streams, whether primary or part-time, are subject to GST. Therefore, the coaching class income is taxable and must be declared as a supply.

DIVYESH JAIN

DIVYESH JAIN (Querist)

14 September 2021 Dear Sir,

One of my client is into Business of manufacturing and is registered under GST with Rs. 42 lacs as turnover. He is not under tax audit in income tax.

Apart from business he also takes coaching classes and earns an additional income of around Rs. 2 lacs per annum.

Is it mandatory for him to pay GST on the coaching class income as he does that as a part time activity.

Please help me resolve this issue.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 September 2021 Yes.
A registered supplier is liable to pay GST over all the 'supplies'. Be it its main activity or part time.

DIVYESH JAIN

DIVYESH JAIN (Querist)

14 September 2021 Coaching class income is his part time income. Its not main business activity.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 September 2021 When you charge any fees, which is supply under GST. So taxable.
Add the supply in your list of 'Supplies'

Message likes : 1 times

DIVYESH JAIN

DIVYESH JAIN (Querist)

14 September 2021 Ok, Thank you for your advice

CA Puja Sharma

CA Puja Sharma (Expert)

15 September 2021 Yes, he has to charge GST on his tuition income also. Once a person has registered himself under GST then he will have to pay GST on all considerations received from his customers.

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