Training for Welfare Students Exempt from GST under Entry 72

The Authority ruled in favor of the Applicant on both issues. It held that the training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana, was exempt from GST under Entry 72 of the HGST Act. Additionally, the Applicant was not required to be registered under the State of Haryana under HGST/CGST due to the nature of the services provided and the applicable exemptions.

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Issues:
1. Liability to pay GST/IGST tax on training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana.
2. Whether the Applicant is liable to be registered under the State of Haryana under HGST/CGST.

Analysis:

Issue 1:
The Applicant sought an Advance Ruling on the liability to pay GST/IGST tax on training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana. The Applicant contended that the training fee was to be received from the Directorate of Welfare of Schedule Caste and Backward Classes Department, Haryana, and relied on Entry No. 72 of the Haryana Government Excise and Taxation Department Notification No. 47/ST-2 dated 30.06.2017 for exemption from GST. The Applicant argued that as the entire expenditure was borne by the State of Haryana, no GST should be levied on the training provided. The Authority concurred with the Applicant's position, citing that training provided under such circumstances is exempt under Entry 72 of Notification No. 47 of the HGST Act, subject to the condition that the entire expenditure is borne by the Central/State Government.

Issue 2:
The second issue pertained to whether the Applicant was liable to be registered under the State of Haryana under HGST/CGST. The Applicant argued that as the training was provided at the behest of the State of Haryana and the entire expenditure was borne by the State, no commercial activity was involved, and therefore, no CGST/SGST/IGST should be levied. The Applicant relied on Notifications exempting services provided to the Central Government, State Government, or Union Territory under any training program where the total expenditure is borne by the government. The Authority agreed with the Applicant's interpretation, stating that as per Section 23 of the Act, a person engaged exclusively in supplying goods and services not liable to tax or fully exempt is not required to register under the GST Acts until taxable supplies are made. Consequently, the Authority held that the Applicant was not liable for registration in the State of Haryana under HGST/CGST.

In conclusion, the Authority ruled in favor of the Applicant on both issues, determining that the training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana, was exempt from GST under Entry 72 of the HGST Act and that the Applicant was not required to be registered under the State of Haryana under HGST/CGST due to the nature of the services provided and the exemptions applicable.

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