2021 (6) TMI 1011 - AAR - GST

Levy of GST / IGST - training to students at behest of Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana by applicant under a training programme for which total expenditure is borne by state Govt. of Haryana - Entry No. 72 of the Haryana Govt. Excise Taxation Department Notification No. 47/ST-2 Dated 30.06.2017 - requirement of registration under the State of Haryana under HGST/CGST. HELD THAT - The applicant is providing training for JEE (Non Med.) and NEET (Med.) to the selected candidates at the behest of Directorate of Welfare of Schedule Caste and Backward Class, Department of Haryana, Chandigarh, Class 12 ff Non-Medical and Medical aspirants. The applicant has placed reliance on the entry No. 72 of the notification No. 47 dated 30-06-2017 - This authority also agrees with the operative part of the above stated letter issued to the Director, Welfare of Schedule Caste and Backward Classes Department, Haryana. Therefore, the training imparted by M/S Sachdeva Colleges Ltd. to the students selected through Directorate of Haryana for JEE (Non-Med.) and NEE T (Medical) are exempt under entry 72 of Notification No. 47 of the HGST Act subject to that the whole expenditure is borne by the Center/State Government. Requirement of registration - HELD THAT - Section 23 of the Act provides that any person engaged exclusively in the business of supplying goods and services or both that are not liable to tax or fully exempt from tax under this Act or under the Integrated Goods and Service Tax Act. So the applicant is not liable for registration till he supplies goods and services or both that are not liable to tax or fully exempt from lax under the GST Acts. Application disposed off.

Summary

Issues:
1. Liability to pay GST/IGST tax on training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana.
2. Whether the Applicant is liable to be registered under the State of Haryana under HGST/CGST.

Analysis:

Issue 1:
The Applicant sought an Advance Ruling on the liability to pay GST/IGST tax on training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana. The Applicant contended that the training fee was to be received from the Directorate of Welfare of Schedule Caste and Backward Classes Department, Haryana, and relied on Entry No. 72 of the Haryana Government Excise and Taxation Department Notification No. 47/ST-2 dated 30.06.2017 for exemption from GST. The Applicant argued that as the entire expenditure was borne by the State of Haryana, no GST should be levied on the training provided. The Authority concurred with the Applicant's position, citing that training provided under such circumstances is exempt under Entry 72 of Notification No. 47 of the HGST Act, subject to the condition that the entire expenditure is borne by the Central/State Government.

Issue 2:
The second issue pertained to whether the Applicant was liable to be registered under the State of Haryana under HGST/CGST. The Applicant argued that as the training was provided at the behest of the State of Haryana and the entire expenditure was borne by the State, no commercial activity was involved, and therefore, no CGST/SGST/IGST should be levied. The Applicant relied on Notifications exempting services provided to the Central Government, State Government, or Union Territory under any training program where the total expenditure is borne by the government. The Authority agreed with the Applicant's interpretation, stating that as per Section 23 of the Act, a person engaged exclusively in supplying goods and services not liable to tax or fully exempt is not required to register under the GST Acts until taxable supplies are made. Consequently, the Authority held that the Applicant was not liable for registration in the State of Haryana under HGST/CGST.

In conclusion, the Authority ruled in favor of the Applicant on both issues, determining that the training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana, was exempt from GST under Entry 72 of the HGST Act and that the Applicant was not required to be registered under the State of Haryana under HGST/CGST due to the nature of the services provided and the exemptions applicable.