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2019 (3) TMI 1577 - AAAR - GSTScope of National Skill Development Programme - educational courses offered by the Applicant, approved by NSDC - certain educational courses for which qualification standards / framework i.e. QP/ NOS have not been defined by NSDC, whether come within the scope of National Skill Development Programme implemented by NSDC - educational courses subsequently upgraded by the Applicant within pre-defined QP/ NOS framework - N/N. 12/2017- Central Tax (Rate), dated the 28th June 2017 - Benefit of exemption if such educational courses are offered to corporate and business institutions - educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor - challenge to AAR decision. Held that - With respect to the first requirement the service provider has to be a training partner approved by NSDC or the sector Skill Council and at the time of Advance Ruling the appellant had submitted photocopies of certificates which shows that the appellant is a training partner of NSDC for the Financial Years 2014-15, 2015-16, 2016-17 201718. The appellant had not produced the certificate for the F.Y. 2018-19 and therefore it was held by the AAR that the statement made by the appellant that they continued to be a training partner of NSDC is not clear. However, at the appellate stage the appellant has produced the photocopies of certificates which shows that it is a training partner of NSDC for the F.Y. 2018-19 also. Therefore, the issue that the appellant is a training partner approved by NSDC is now clear. Secondly we have to examine whether the appellant provided services in relation to National Skill Development Program implemented by the NSDC. A reading of the relevant entry at Sr.No.69 of the Notification No.12 of 2017, shows that in order to claim exemption under it, the appellant has to provide any of the three conditions given at i), ii) and iii). The appellant has to prove that they provide services in relation to a) National Skill Development Program implemented by the NSDC or to Vocational Skill Development Course under the National Skill Certification and Monetary Reward Scheme. b) Any other scheme implemented by the NSDC. IMS Proschool Pvt. Ltd. i.e. the appellant in the present case offers educational training and skill courses through classroom training and virtual coaching in many areas such as Data Analysis, Digital Marketing, Fitter, Mechanical Assembly, Electrician Courses, Sales Courses etc. They also prepare programs which includes preparing crews and working professionals to appear for various national and international certification including Financial Modelling, Financial Analysis, Management Account, Business Analysis etc. - NSDC is a Public Limited Company and was set up as a Public Private partnership model to fulfill the growing needs of skilled manpower in India and narrow the gap between demand and supply of skill. It is seen that neither in the grounds of appeal nor in the hearing the appellant has given any conclusive evidence that the training programmes offered by them are covered under (i) or (iii) of the Notification entry no 69. The appellant has not made any claim in their submission that their training programs or educational courses are implemented under PMKK PMKVY or UDAN, and therefore the AAR was right in coming to the conclusion that the services offered by the applicant are not covered by Sr. No. ii iii - there are no submissions made by the appellant that they are approved training partners of the NSDC with regard to the above mentioned schemes. Therefore, we come to the conclusion that the contention of the appellant is with regard to the general mandate given to NSDC of skill development in the country and as NSDC also approves courses and funds private sector initiative of which the appellant is one, and therefore it is the contention of the appellant that they are covered by the Entry No.69 of the Notification 12/2017. The main schemes and programmes that would be covered under the National Skill Development Programmes would be PMKVY, Sankalp, Udaan, STAR, Polytechnic Schemes, Vocationalisation of education run by the Ministry of Skill Development and Entrepreneurship and similar other skill development schemes that are run by the various ministries or departments or their directorates. If the services in relation are provided by training partners in relation to the schemes as mentioned above through the partners approved by NSDC, then only the benefit of Notification as claimed would be applicable and it would not be applicable in respect of other services relating to skill development provided by the appellant. The decision of AAR upheld.
Issues Involved:
1. Eligibility of educational courses approved by NSDC for GST exemption. 2. Treatment of educational courses with exceptional approval by NSDC. 3. Treatment of modified educational courses not yet approved by NSDC. 4. Availability of GST exemption for NSDC-approved courses. 5. GST exemption for courses offered to corporate and business institutions. 6. GST exemption for courses imparted by business partners as sub-contractors. Issue-Wise Detailed Analysis: 1. Eligibility of educational courses approved by NSDC for GST exemption: The appellant sought clarification on whether educational courses approved by NSDC would qualify for GST exemption under Notification No. 12/2017-Central Tax (Rate). The jurisdictional officer agreed that such courses fulfill the norms of NSDC. However, the ARA concluded that the National Skill Development Programme covers only actual schemes and programs of skill development undertaken by the Government, not every skill enhancement activity. 2. Treatment of educational courses with exceptional approval by NSDC: The appellant questioned whether courses with exceptional approval by NSDC, pending the definition of QP/NOS, would be eligible for GST exemption. The jurisdictional officer did not comment on this. The ARA did not provide a direct answer but implied that only fully approved courses would qualify. 3. Treatment of modified educational courses not yet approved by NSDC: The appellant asked if modified versions of NSDC-approved courses, within pre-defined QP/NOS frameworks but not yet approved, would be eligible for exemption. The jurisdictional officer stated that the decision rests with NSDC. The ARA did not explicitly address this, implying that unapproved modifications do not qualify. 4. Availability of GST exemption for NSDC-approved courses: The appellant sought a ruling on the availability of GST exemption for NSDC-approved courses. The jurisdictional officer agreed that exemption applies if NSDC norms are met. The ARA, however, ruled negatively, stating that the appellant did not conclusively prove that their courses were covered under the specific schemes mentioned in the notification. 5. GST exemption for courses offered to corporate and business institutions: The appellant questioned whether GST exemption would still apply if courses were offered to corporate and business institutions. The jurisdictional officer responded negatively. The ARA agreed, emphasizing that the exemption is intended for government-implemented schemes, not private sector initiatives. 6. GST exemption for courses imparted by business partners as sub-contractors: The appellant asked if courses imparted by their business partners as sub-contractors would be considered as offered by the appellant and thus eligible for exemption. The jurisdictional officer stated that approval should be for the appellant, not sub-contractors. The ARA concurred, ruling that services provided by sub-contractors are not covered under the exemption. Separate Judgments Delivered: The judgment was delivered collectively by the Appellate Authority for Advance Ruling, Maharashtra, without separate judgments from individual judges. Conclusion: The Appellate Authority upheld the ARA's ruling, denying GST exemption for the appellant's courses on the grounds that they did not conclusively prove alignment with the specific government schemes implemented by NSDC. The authority emphasized that the exemption applies only to services directly related to government-implemented skill development programs, not to private sector initiatives, even if approved or funded by NSDC.
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