2021 (3) TMI 704 - AAR - GST

Benefit of exemption from GST - Services provided under vocational training courses recognized by National Council for Vocational Training (NCVT) or Jaan Shikshan Sansthan (JSS) - Educational institution or not - To be exempt either under Entry No. 64 of exemption list of Goods and Service Tax Act, 2017 or under Educational Institution defined under Notification No. 22/ Central Tax (Rate)? - HELD THAT - The applicant society is registered with the Income Tax department under Section 12A of the Income Tax Act. It is a Non-Governmental organization working for the people affected by leprosy, with the Government of India, State Governments, World Health Organisation etc. The applicant have many leprosy referral hospitals, Vocational Training Institute, Media Centre, Molecular Biology Research Laboratory, Mercy homes etc. spread over 9 states. Entry No. 64 of Notification No. 12/2017 CT (Rate) dated 28.06.2017 deals with Services provided by the Central Government, State Government, Union territory or local authority . The applicant does not fall under these categories, therefore, the said entry is not applicable to them, Educational institution or not - HELD THAT - Diesel Mechanic, Computer Operator and programming Assistance (COPA), Welder and Cutting sewing trades are affiliated by National Council for Vocational Training under the Ministry of Skill Development and Entrepreneurship. Accordingly, we observe that these courses fall under the definition of approved vocational education courses - As regard to the Informal Trades as mentioned in the Annexure I of the application filed by the applicant, it is observed that as these courses are not approved by the National Council of Vocational Training/ State Council for Vocation Training, so they are not eligible to qualify as approved vocational education courses . Thus, only the course affiliated by the National Council for Vocational Training are exempt from payment of GST under Sr. No. 66 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Summary

Issues:
1) Whether vocational training courses recognized by National Council for Vocational Training (NCVT) or Jaan Shikshan Sansthan (JSS) are exempt from GST under specific entries.
2) Classification of services provided by the applicant under the GST Act.
3) Interpretation of relevant notifications and definitions under the GST Act.

Analysis:
1) The applicant, a registered society under the Income Tax Act, sought an advance ruling on whether vocational training courses recognized by NCVT or JSS are exempt from GST under specific entries. The applicant operates in various sectors and provides vocational training courses at their Faizabad branch. They specifically inquired about the applicability of Entry No. 64 of the exemption list or under the definition of "Educational Institution" under Notification No. 22/ Central Tax (Rate).

2) The Authority noted that the applicant falls under the definition of an educational institution as they provide courses recognized by NCVT and JSS. The applicant sought clarity on whether their courses qualify as approved vocational education courses. The Authority examined the definitions and found that courses approved by NCVT are considered approved vocational education courses, making them eligible for exemption from GST.

3) The Authority referred to specific provisions and definitions under the GST Act to determine the eligibility of the applicant's courses for exemption. They highlighted that courses recognized by NCVT are exempt from GST under Entry No. 66 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017. The ruling clarified that only courses affiliated with NCVT are exempt from GST, not those affiliated with JSS.

4) The ruling provided by the Authority is valid within the jurisdiction of Authority for Advance Ruling Uttar Pradesh and is subject to the provisions under Section 103(2) of the CGST Act, 2017 unless declared void under Section 104(1) of the Act. The decision emphasized the importance of adherence to specific criteria and affiliations for courses to qualify for GST exemption under the relevant notifications.

This detailed analysis of the judgment provides a comprehensive overview of the issues addressed by the Authority for Advance Ruling in Uttar Pradesh regarding the exemption of vocational training courses from GST under specific provisions of the GST Act.