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Income on guest lectures liable to 18 per cent GST

AMRG & Associates senior partner Rajat Mohan says ruling will open a Pandora’s box for millions of freelancers, academicians, researchers and professors
AAR ruling would mean that service professionals whose turnover exceeds  Rs 20 lakh will have to pay 18 per cent GST.
AAR ruling would mean that service professionals whose turnover exceeds Rs 20 lakh will have to pay 18 per cent GST.
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Our Special Correspondent   |   New Delhi   |   Published 17.02.22, 03:40 AM

The income earned from providing guest lectures will attract 18 per cent GST, the Karnataka bench of AAR has ruled.

The applicant, Sairam Gopalkrishna Bhat, had approached the Authority for Advance Ruling seeking clarity on whether the income earned from conducting guest lectures amounts to supply of taxable services.

Bhat is a professor at the National Law School, Bangalore.

He also enquired whether the income earned from research training projects funded by central and state ministries will attract GST.

While passing the ruling, the AAR said the said service falls under the category of other professional, technical and business services and does not fall under the exempted category of services. Hence, the said services provided by the applicant attract GST of 18 per cent, it said.

The AAR ruling would mean that service professionals whose turnover exceeds Rs 20 lakh will have to pay 18 per cent goods and services tax (GST) on income earned from providing guest lectures.

AMRG & Associates senior partner Rajat Mohan said this ruling will open a Pandora’s box for millions of freelancers, academicians, researchers, professors and others who share knowledge as guest lectures on payment of a consideration.

“Individuals working part-time as instructors, trainers and mentors would also need to revalidate their liability to pay GST post this ruling,” Mohan added.

The AAR noted the ruling by the Supreme Court in the matter of Loka Shikshana Trust where ‘education’ was defined as a process of training and developing knowledge, skill and character of students by normal schooling.



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