2020 (7) TMI 142 - AAR - GST

Exemption from GST - service of providing vocational training courses at Vocational Training Centre, Bankura - applicability of entry no 64 or 66 of Notification 12/2017 - Central Tax (Rate) dated 28/06/2017 (State Notification No. 1136-FT dated 28/06/2017), as amended time to time - HELD THAT - The applicant is not the Government or local authority. Entry No. 64 of the Exemption Notification is not, therefore, applicable. A reference is made to the services provided by the applicant as a project implementation agency under the Deendayal Upadhyaya Grameen Kausalya Yojana. It is exempt under Entry 71 of the Exemption Notification. However, the applicant provides no evidence that BEMVT is acting as a project implementation agency under the above scheme. Clause h(ii) of the Exemption Notification defines an approved vocational course as a modular employable skill course, approved by NCVT and run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. BEMVT is registered with DGET and its courses on formal trade skills of diesel mechanic, welder and sewing technology, as mentioned in the Table in para 2.2 above, are approved by NCVT. It is, therefore, imparting education as a part approved vocational education courses. The applicant is, therefore, an educational institution in terms of clause 2(y)(iii) of the Exemption Notification, and its supplies to the students, faculty and staff relating to the courses imparting skills of diesel mechanic, welder and sewing technology are exempt in terms of Entry 66 (a) of the Exemption Notification.

Summary

Issues:
1. Admissibility of the Application
2. Submissions of the Applicant
3. Observations and findings of the Bench

Admissibility of the Application:
The issue raised by the applicant regarding the exemption of vocational training courses under specific notifications is deemed admissible under section 97(2)(b) of the GST Act. The application's admissibility was not objected to by the revenue officer, leading to its acceptance.

Submissions of the Applicant:
The applicant, a registered NGO, runs a Vocational Training Institute offering courses recognized by the National Council of Vocational Training. The applicant argues its status as an educational institution under the Exemption Notification. The courses provided include formal trades like diesel mechanic, welder, and sewing technology, all approved by the Ministry of Skill Development and Entrepreneurship.

Observations and findings of the Bench:
The Bench noted that the applicant is not a Government or local authority, rendering Entry No. 64 of the Exemption Notification inapplicable. However, the applicant could be exempt under Entry 71 if acting as a project implementation agency under a specific scheme, which lacked evidence. Regarding educational services, the Bench found the applicant qualified as an educational institution under the Exemption Notification's definitions. The courses offered were approved vocational courses, making the applicant eligible for exemption under Entry 66 (a) of the Exemption Notification.

Ruling:
The Bench ruled in favor of the applicant, stating that services related to skill development courses for diesel mechanic, welder, and sewing technology are exempt under Entry 66 (a) of the relevant notification. Exemptions under other entries were deemed not applicable. The ruling's validity is subject to the provisions of the GST Act until declared void under specific sections.

This judgment clarifies the admissibility of the application, the applicant's submissions regarding vocational training courses, and the Bench's findings determining the applicant's eligibility for exemption under specific entries of the Exemption Notification.