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2020 (7) TMI 349 - AAR - GSTExemption from GST - services provided under vocational training courses recognised by National Council for Vocational Training (NCVT) - whether exempted either under Entry No.64 of exemptions list of Goods and Services Tax Act, 2017 or under Educational Institution defined under Notification 12/Central Tax (Rate)? - HELD THAT - The applicant falls under definition of education vide the Clause No. 2 (y) (iii) as education as a part of approved vocational education training in GST Notification No.12/2017 of Central Tax Rate dated 25th June 2017. The approved vocational education course is also defined in clause 2(h) of the above mentioned Notification No.12/2017 dated 28th June, 2017 and it is observed that the applicant was granted affiliation by the National Council for Vocational Training (NCVT) in respect of vocational skills pertaining to Formal Trades viz., Diesel Mechanic, Computer Operator and Programming Assistance (COPA), Welder, Dress Making and Motor Mechanic. These vocational course are attracting NIL rate of tax under GST Act, 2017 (Entry 66 of Notification NO.12/2017 CT Rate dated 28th June 2017).
Issues Involved:
1. Whether services provided under vocational training courses recognized by the National Council for Vocational Training (NCVT) are exempt under Entry No. 64 of the exemptions list of the Goods and Services Tax Act, 2017. 2. Whether such services are exempt under the definition of an Educational Institution as per Notification 12/2017-Central Tax (Rate). Issue-Wise Detailed Analysis: 1. Exemption under Entry No. 64 of the GST Exemptions List: The applicant, The Leprosy Mission Trust India, sought an advance ruling on whether their vocational training services recognized by NCVT are exempt under Entry No. 64 of the GST exemptions list. The Advance Ruling Authority examined the provisions of GST Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017. Entry No. 64 pertains to services provided by the Central Government, State Government, Union territory, or local authority by way of assignment of the right to use any natural resource. The Authority observed that the applicant is not a Central/State Government, Union Territory, or local authority. Therefore, Entry No. 64 is not applicable to the applicant's case. 2. Exemption under the Definition of Educational Institution as per Notification 12/2017-Central Tax (Rate): The applicant also raised whether their services are eligible for exemption under Entry No. 66 of Notification No. 12/2017-Central Tax (Rate). This entry exempts services provided by an educational institution to its students, faculty, and staff. The Authority examined the definition of an educational institution under Clause 2(y) of the Notification, which includes institutions providing services as part of an approved vocational education course. The approved vocational education course is defined in Clause 2(h) of the same notification, which includes courses run by industrial training institutes affiliated with the National Council for Vocational Training (NCVT). The applicant's courses, such as Diesel Mechanic, COPA, Welder, Dress Making, and Electrician, are recognized by NCVT and fall under the purview of the Ministry of Skill Development and Entrepreneurship (MSD&E). The Authority concluded that the applicant's vocational training courses recognized by NCVT qualify as an approved vocational education course under Clause 2(h). Therefore, the services provided by the applicant are exempt under Entry No. 66(a) of Notification No. 12/2017-Central Tax (Rate). Ruling: The services provided under vocational training courses recognized by the National Council for Vocational Training (NCVT) are exempted under Entry No. 66(a) of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017.
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