Services provided by an educational institution to its students, faculty and staff for skills development courses, exempt from GST: AAR

The West Bengal Authority of Advance Ruling (AAR) has ruled that student, faculty, and staff services with respect to skills development courses for diesel mechanic, welder, and sewing technologies are exempt under entry 66 (a) of the 12/2017 – Central Taxe (Rate) notification dated June 28, 2020 (Exemption notification). The rules that entry No. 71 is inapplicable because the applicant is not acting as a project implementation agency under the Deendayal Upadhyaya Grameen Kausalya Yojana.

The applicant, The Leprosy Mission Trust India Bill Edgar Memorial Vocational training Center is registered under section 12A of the Income Tax Act 1961. It is a non-governmental organization (NGO) that manages, among other things, a vocational training institute in Bankura named Bill Edgar Memorial Vocational Training Center (BEMVT) mainly for the development of skills of disadvantaged people suffering from leprosy.

The applicant requested the advance ruling on whether the service of providing vocational training courses in its vocational training center, Bankura is exempt under entry No. 64 or 66 of notification 12/2017 – Central Tax (rate) of June 28, 2020, as amended from time to time.

The authority composed of members Susmita Bhattacharya and Parthsarthi Dey ruled that the applicant’s services to students, faculty and staff in relation to skills development courses for diesel mechanic, welder and sewing technology are exempt. under entry 66 (a) of notification 12/2017 – Central tax (rate) of June 28, 2017 (State Notification No. 1136-FT of 06/28/2017), as amended from time to time other. The exceptions to sections 64 or 71 of the above notification are not applicable.

“The applicant is neither the government nor the local authority. Entry n ° 64 of the exemption notification is therefore not applicable. Reference is made to the services provided by the applicant as a project implementation agency under the Deendayal Upadhyaya Grameen Kausalya Yojana. It is exempt under entry 71 of the exemption notification. However, the applicant does not provide any evidence that BEMVT is acting as the project implementing agency under the above scheme. During the personal hearing, the petitioner did not insist that he rule on this point, ”observed the AAR.

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Janice G. Ball