AAR: GST Exemption Allowed for NSDC Training Partner Services under Entry 69
AAR: GST Exemption Allowed for NSDC Training Partner Services under Entry 69
The applicant is a private limited company running training and certification programmes in the IT/ITeS field aimed at providing employment-specific training. It entered into an agreement with the National Skill Development Corporation (NSDC) dated 25.01.2024 and was approved as a training partner for the NSDC “Market-led Fee-based Services Scheme”. The applicant delivers training both at its own campus and at partner universities’ campuses under that scheme.
The applicant contended that their services are exempt from GST under Entry No. 69 of Notification No. 12/2017, Central Tax (Rate), which exempts specified skill development training when carried out under an NSDC-implemented scheme. It was argued that both requirements, approval as an NSDC partner and delivery of training under an NSDC scheme, were fulfilled, supported by an agreement executed with NSDC.
Issue Raised: Whether training and certification services provided by an NSDC-approved partner directly to students, or through affiliated universities collecting fees, are eligible for GST exemption under Entry No. 69 of the said Notification.
AAR’s Decision: The Authority held that where services are provided directly to students, the exemption under Entry No. 69 is available, subject to compliance with notification conditions and documentary verification. But in cases where universities act as intermediaries, collecting fees from students and remitting amounts to the applicant, the Authority noted that the exemption’s applicability would depend on whether the universities qualify as “pure agents.” AAR held that under Section 2(31) of the CGST Act, it is irrelevant whether fees are paid by students or remitted via universities; what matters for Entry No. 69 is that the service is provided by an NSDC-approved partner under an NSDC scheme.
Thus, the exemption was confirmed for direct services to students, while transactions routed through universities remain unresolved pending further factual clarity.
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