2021 (9) TMI 318 - AAR - GST

Exemption under GST - services provided under vocational training courses recognized by National Council for Vocational Training (NCVT) or State Council of Vocational Training (SCVT) - exempt either under Entry No. 64 of exemption list of Goods and Service Tax Act 2017 or under Educational Institution defined under Notification 12/2017 Central Tax (Rate)? - HELD THAT - The applicant Society, a Non-Governmental Organization was established in the year 1973. The Leprosy Mission Regional Vocational Training Centre at Vadathorasalur, Tamil Nadu was started in the year 1996. It trains and supports employment of young adolescents coming from families affected with leprosy and individuals with disabilities. Their project benefits Children self affected with leprosy, Children of leprosy affected persons, differently abled, Parentless Children. Applicant is conducting courses under formal Trades and informal trades. Course falling under formal trades are courses affiliated with the National Council for Vocational Training (NCVT) and State Council of Vocational Training (SCVT) - In the instant case, the applicant's activity falls under Education as part of an approved vocational education course' in respect of the courses listed as Formal Trades' for which they possess affiliation under NCVT/SCVT. Hence in respect of these courses, they fit under the definition of educational Institution under Clause 2(y) of the Notification No.12/2017 dated 28.06.2017. Whether the courses conducted by the applicant are approved vocational education courses? - HELD THAT - In the instant case, the courses offered by the applicant namely Mechanic (Motor Vehicle), Electrician, Sewing Technology are courses approved by National Council for Vocational Training (NCVT/Central) which has been evidenced by the certificates issued to candidates on completion of courses as produced by the applicant. These certificates are issued by NCVT wherein the name of the applicant is mentioned as the name of the institute. In respect of Mechanic Refrigeration Air Condition and Central Plant, Electrical Technician and Automobile Mechanic are approved by State Council of Vocational Training (SCVT), it is seen that the certificates are issued by the Department of Employment and Training of Government of Tamil Nadu wherein the name of the applicant figures as the institute imparting the training - from the certificates issued to the candidates completing the above said vocational courses, it is clear that the courses are affiliated to the NCVT/SCVT which falls under SI. No. 66 Notification 12/2017 Central Tax (Rate) as education as part of an approved vocational education course. The services provided by the applicant under vocational training courses recognized by National Council for Vocational Training (NCVT) or State Council of Vocational Training (SCVT) are exempt under Serial Number 66 Notification 12/2017 Central Tax (Rate) as education as part of an approved vocational education course. In the instant case, courses affiliated to SCVT are exempt subje.ct to re-affiliation by the Department of Employment and Training of Government of Tamil Nadu.

Issues Involved:
1. Applicability of GST exemption to vocational training courses recognized by NCVT or SCVT.
2. Classification of the applicant as an "educational institution" under Notification 12/2017 Central Tax (Rate).
3. Eligibility of specific vocational training courses for GST exemption under Entry No. 66 of the exemption list.

Issue-Wise Detailed Analysis:

1. Applicability of GST exemption to vocational training courses recognized by NCVT or SCVT:

The applicant, a registered entity under GST, is engaged in providing vocational skills to adolescents from leprosy-affected families and individuals with disabilities. They sought an advance ruling on whether their vocational training courses recognized by the National Council for Vocational Training (NCVT) or State Council for Vocational Training (SCVT) are exempt under Entry No. 66 of the GST exemption list or as an educational institution under Notification 12/2017 Central Tax (Rate).

2. Classification of the applicant as an "educational institution" under Notification 12/2017 Central Tax (Rate):

The applicant argued that their institution qualifies as an "educational institution" as defined in Notification 12/2017 Central Tax (Rate), which includes institutions providing education as part of an approved vocational education course. The relevant definition under Clause 2(y) includes institutions providing:
- Pre-school education and education up to higher secondary school or equivalent.
- Education as part of a curriculum for obtaining a qualification recognized by law.
- Education as part of an approved vocational education course.

The applicant's activities fall under the third category, as they provide vocational training courses affiliated with NCVT and SCVT. Therefore, they meet the criteria of an "educational institution."

3. Eligibility of specific vocational training courses for GST exemption under Entry No. 66 of the exemption list:

The ruling examined whether the applicant's courses qualify as "approved vocational education courses" under Clause 2(h) of Notification 12/2017, which includes:
- Courses run by an industrial training institute or center affiliated with NCVT or SCVT offering courses in designated trades under the Apprentices Act, 1961.
- Modular Employable Skill Courses approved by NCVT.

The courses provided by the applicant, such as Mechanic (Motor Vehicle), Electrician, and Sewing Technology, are recognized by NCVT, and courses like Mechanic Refrigeration & Air Conditioning, Electrical Technician, and Automobile Mechanic are recognized by SCVT. The certificates issued to candidates completing these courses confirm their affiliation with NCVT/SCVT, thus qualifying them for GST exemption under Entry No. 66.

Conclusion and Ruling:

The Authority for Advance Ruling concluded that the services provided by the applicant under vocational training courses recognized by NCVT or SCVT are exempt under Serial Number 66 of Notification 12/2017 Central Tax (Rate) as education as part of an approved vocational education course. Specifically:
- Courses recognized by NCVT (Mechanic Motor Vehicle, Electrician, Sewing Technology) are exempt.
- Courses recognized by SCVT (Mechanic Refrigeration & Air Conditioning, Electrical Technician, Automobile Mechanic) are exempt, subject to re-affiliation by the Department of Employment and Training, Government of Tamil Nadu.

RULING:
(i) Services provided under NCVT-recognized courses (Mechanic Motor Vehicle, Electrician, Sewing Technology) are exempt under Serial Number 66 of Notification 12/2017 Central Tax (Rate).
(ii) Services provided under SCVT-recognized courses (Mechanic Refrigeration & Air Conditioning, Electrical Technician, Automobile Mechanic) are exempt under Serial Number 66 of Notification 12/2017 Central Tax (Rate), subject to re-affiliation by the Department of Employment and Training, Government of Tamil Nadu.

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