2022 (5) TMI 1235 - AAR - GST

Classification of services - rate of GST - (Training Academy) Fire Prevention Emergency Training and Awareness Programmes - Serial No.69 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 - HELD THAT - As per entry No. 69 of Notification No. 12/2017, GST is exempt on any services provided by a training partner approved by the National Skill Development corporation or the Sector Skill Council in relation to- (i) the National Skill Development Programme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation. However the applicant has not furnished any information whether they are a training partner approved by the National Skill Development Corporation or the Sector Skill Council and hence the activity of providing training to the trainees on fire prevention is not covered under this entry. Whether the activity of providing training to the trainees on fire prevention is covered under Serial No.30 of the Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017? - HELD THAT - Since the Applicant is providing training to the trainees on fire prevention, the same is covered under SAC 999293 and is liable to GST at 18% as per Serial No.30 of the Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017.

Summary

Issues:
1. Applicable rate of GST on Fire Prevention & Emergency Training and Awareness Programmes.

Analysis:
The applicant, a proprietary concern registered under the CGST Act and KGST/SGST Act, sought an advance ruling on the GST rate applicable to their Training Academy providing Diploma courses and quality training on fire prevention. The admissibility of the application was confirmed under Section 97(2)(e) of the CGST Act 2017. The applicant emphasized the societal benefits of their training programs and argued for a 5% GST rate based on the notification for technical aids for education and vocational training.

During the personal hearing, the applicant reiterated their case. The authority clarified that the CGST Act and KGST Act are similar in most provisions. The applicant's training activities were examined under various GST notifications to determine the applicable rate. It was noted that the training provided did not fall under the notification for goods and hence the 5% rate could not be applied. Additionally, the activity did not qualify for exemption under the notification for services provided by approved training partners under specific schemes.

Further analysis revealed that the training on fire prevention fell under SAC 999293 for commercial training and coaching services, attracting an 18% GST rate as per Serial No. 30 of the Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017. Therefore, the ruling was made that Training and Awareness Programmes on Fire Prevention & Emergency are subject to GST at 18% as per the mentioned notification.

This comprehensive analysis of the judgment highlights the applicant's arguments, the authority's considerations, and the final ruling based on the relevant GST notifications and provisions.