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2022 (10) TMI 780 - AAR - GSTExemption from GST - training programmes offered by the applicant, as approved by NSDC would be construed under the any other scheme implemented by the NSDC - training programmes offered in collaboration with other business partners, imparted by business partners of the applicant under a sub contract - Entry no. 69 in Notification No. 12/2017 -Central Tax (Rate) issued by the Ministry of Finance dated 28 June 2017 - HELD THAT - The applicant has entered into an agreement dated 23.06.2022 for partnership with NSDC for executing training under the above scheme for market led Fee-based services under non funded affiliation - the applicant is offering following training programs, as detailed in the proposal approved by the NSDC (Exhibit 5) as amended from time to time with the approval of NSDC. The courses are being offered by the applicant as a Approved Training Partner of NSDC under the scheme for market led Feebased services under non funded affiliation mode. Thus, it is concluded that the services provided by applicant are as training partner approved by the National Skill Development Corporation and are in relation to Scheme implemented by the National Skill Development Corporation - the services offered by the applicant fall under Sl.No.69 (d) (iii) and therefore eligible for exemption under this notification for CGST and SGST. Further, under this entry the services supplied by the applicant as approved training partner of NSDC in relation to any other scheme implemented by the NSDC as required under serial no.69 of the Notification are exempt but not the services received by the applicant from others including a sub-contractor who supplies such services to the applicant who is not a training partner approved by the National Skill Development Corporation or the Sector Skill Council.
Issues Involved:
1. Eligibility of training programs for GST exemption under NSDC schemes. 2. GST exemption applicability for training programs offered in collaboration with business partners. 3. Scope of GST exemption for the company as a whole across different states. Detailed Analysis: Issue 1: Eligibility of Training Programs for GST Exemption under NSDC Schemes The applicant, M/s. Nxtwave Disruptive Technologies Private Limited, sought to determine whether their training programs, approved by the National Skill Development Corporation (NSDC), qualify for GST exemption under serial no. 69 of Notification No. 12/2017-Central Tax (Rate). The applicant is an approved training partner of NSDC, offering programs under the "Scheme for Market Led Fee-Based Services." The scheme aims to create a sustainable skill training ecosystem through various funding models, including self-financing, loans, employer financing, and CSR contributions. The judgment concluded that the training programs provided by the applicant fall under the category of services provided by an approved training partner of NSDC in relation to a scheme implemented by NSDC. Therefore, these services qualify for GST exemption under serial no. 69 (d) (iii) of the said notification. Issue 2: GST Exemption Applicability for Training Programs Offered in Collaboration with Business Partners The applicant also queried whether training programs offered in collaboration with other business partners, imparted under a subcontract, would qualify for the same GST exemption. The judgment clarified that while the services provided directly by the applicant as an approved training partner of NSDC are exempt, this exemption does not extend to services received from subcontractors. Subcontractors who are not approved training partners of NSDC or the Sector Skill Council do not qualify for the exemption. Issue 3: Scope of GST Exemption for the Company as a Whole Across Different States The applicant sought clarification on whether the GST exemption applies to the company as a whole, beyond just the Telangana GST Act, as long as the services meet the criteria laid down under serial no. 69 of the notification. The judgment affirmed that the GST exemption applies to services supplied by the applicant as an approved training partner of NSDC across all states, not limited to Telangana. However, only those services that fall under the specified category of approved training programs are eligible for this exemption. Conclusion: 1. Eligibility of Training Programs for GST Exemption: Yes, the services offered by the applicant fall under SI.No.69 (d) (iii) of Notification No. 12/2017 of CGST notifications and are therefore eligible for exemption under this notification for CGST and SGST. 2. GST Exemption Applicability for Training Programs Offered in Collaboration with Business Partners: No, the exemption does not extend to services received from subcontractors who are not approved training partners of NSDC or the Sector Skill Council. 3. Scope of GST Exemption for the Company as a Whole Across Different States: The exemption applies to the services supplied by the applicant as an approved training partner to NSDC across all states, provided they meet the criteria laid down under serial no. 69 of the notification.
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