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2019 (6) TMI 1306 - AAR - GSTExemption from GST - services provided under vocational training courses recognized by National Council for Vocational Training (NCVT) or Jan Shikshan Sansthan (JSS) - whether the service is exempt either under Entry No 64 of exemption list of Goods and Service Tax Act 2017 or under Educational Institution defined under Notification 22/Central Tax (Rate)? - HELD THAT - Entry 64 of Notification 12/2017 CT (Rate) dated 28.06.2017 deals with services provided by the Central/State Government, Union Territory or local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Central/State Government, Union Territory or local authority' - The applicant is not a Central/ State Government, Union Territory or local authority and therefore Entry No. 64 is not applicable to them. Whether they are eligible under the entry at serial number 66 of the Notification 12/2017 CT (Rate) dated 28.06.2017? - HELD THAT - The applicant has admitted that they do not fall under clause 2(y) (i) (ii) mentioned above but that they fall under Clause (iii). For their services to fall under clause (iii), they have to be seen providing education as a part of an approved vocational education course - From the documents submitted by the applicant, we find that they have been granted affiliation by the National Council for Vocational Training (NCVT) in respect of vocational skills pertaining to (i) Diesel Mechanic, (ii) Computer Operator and Programming Assistance (COPA), (iii) Welder and (iv) Motor Mechanic. These courses are vocational courses and are approved by NCVT. The vocational education courses pertaining to (i) Diesel Mechanic, (ii) Computer Operator and Programming Assistance (COPA), (iii) Welder and (iv) Motor Mechanic are carried out by the applicant who are affiliated to the NCVT and therefore such services provided by them are attracting NIL rate of tax under GST. (Sr.No. 66 of Notification No. 12/2017 CT (Rate) dated 28.06.2019. In respect of the Informal Trades like Tailoring, Offset Printing, Electrician and Wiring, the applicant have themselves submitted that these courses i.e. Offset Printing, Tailoring and Electrician Wiring are non-recognized courses and that they are inclined only to discuss recognized courses. Further, they also have vocational training for wheeler Mechanic, which they have submitted is a training course recognized by Jan Shikshan Sansthan (JSS) under the Ministry of Labour and Employment, Govt. of India. However they have not produced any evidence to support their submissions on this count.
Issues Involved:
1. Exemption under Entry No. 64 of the GST Act 2017. 2. Definition of Educational Institution under Notification 22/2017-Central Tax (Rate). 3. Exemption under Entry No. 66 of the Notification 12/2017 CT (Rate). Issue-wise Detailed Analysis: 1. Exemption under Entry No. 64 of the GST Act 2017: The applicant, a Non-Governmental Organization (NGO) registered under Section 12A of the Income Tax Act, 1961, sought an advance ruling on whether their vocational training courses recognized by the National Council for Vocational Training (NCVT) or Jan Shikshan Sansthan (JSS) are exempt under Entry No. 64 of the exemption list of the GST Act 2017. The Authority concluded that Entry No. 64 of Notification 12/2017 CT (Rate) dated 28.06.2017 pertains to services provided by the Central/State Government, Union Territory, or local authority by way of assignment of right to use any natural resource. Since the applicant is not a Central/State Government, Union Territory, or local authority, Entry No. 64 is not applicable. 2. Definition of Educational Institution under Notification 22/2017-Central Tax (Rate): The applicant claimed that their institution qualifies as an "educational institution" under Notification 22/2017-Central Tax (Rate), which defines an educational institution as one providing services by way of: (i) Pre-school education and education up to higher secondary school or equivalent; (ii) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) Education as a part of an approved vocational education course. The applicant admitted that they do not fall under clauses (i) and (ii) but argued that they fall under clause (iii). To qualify under clause (iii), the courses must be approved vocational education courses, defined as courses run by an industrial training institute or center affiliated to the NCVT or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961, or a Modular Employable Skill Course approved by the NCVT. 3. Exemption under Entry No. 66 of the Notification 12/2017 CT (Rate): The applicant also sought clarification on whether their services are exempt under Entry No. 66 of Notification 12/2017 CT (Rate) dated 28.06.2017, which provides exemptions for services provided by an educational institution to its students, faculty, and staff, and certain services provided to an educational institution. The Authority examined whether the applicant’s vocational training courses qualify as an "approved vocational education course" under the definition provided in Notification 12/2017 CT (Rate). The Authority found that the vocational training courses for Diesel Mechanic, Computer Operator and Programming Assistance (COPA), Welder, and Motor Mechanic are recognized by the NCVT and therefore qualify as approved vocational education courses. Consequently, these courses are exempt under Entry No. 66 of Notification 12/2017 CT (Rate). Conclusion: 1. The services provided under vocational training courses recognized by NCVT or JSS are not exempt under Entry No. 64 of the exemption list of the GST Act 2017. 2. The institution does not fall under the definition of an educational institution for clauses (i) and (ii) under Notification 22/2017-Central Tax (Rate) but qualifies under clause (iii) for certain courses. 3. The vocational training courses for Diesel Mechanic, COPA, Welder, and Motor Mechanic are exempt under Entry No. 66 of Notification 12/2017 CT (Rate) as amended, while other informal courses are not exempt due to lack of recognition.
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