2021 (8) TMI 495 - AAR - GST

Educational Courses by IIIC Exempt from GST under Notification No. 12/2017-Central Tax

In Re: M/s. Uralungal Labour Contract Co-op Society Ltd.

The case involved determining the taxability of educational courses conducted by the Indian Institute of Infrastructure and Construction (IIIC) under GST ... Exemption from GST - educational courses which are conducted in Indian Institute of Infrastructure and Construction (IIIC) - Applicability of N/N. 12/ 2017-Central Tax (Rate) dated 28-06-2017 - HELD THAT:- The exemption provided under the entries under item (a), (b) and (c) of Si No. 69 of the said notification is in respect of services provided by the National Skill Development Corporation or a Sector Skill Council approved by the National Skill Development Corporation or an assessment agency approved by the Sector Skill Council or the National skill Development Corporation. Admittedly, the applicant does not come under the category of any of the above specified entities. The applicant has not produced any evidence to show that the applicant is approved as a training partner by the National Skill Development Corporation or the Sectoral Skill Development Council in relation to (i) the National Skill Development Programme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the national Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation and the courses conducted at IIIC come under any of the specified categories - Thus, the courses conducted at IIIC are not eligible for exemption as per entry at S1 No. 69 of the Notification No. 12/2017 CT (Rate) dated 28-06-2017. Courses conducted by IIIC are approved by the Government of Kerala - HELD THAT:- The term “educational institution” under sub-clause (ii) covers institutions providing services by way of education as a part of curriculum for obtaining a qualification recognised by any law for the time being in force. The conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications recognized by law would be covered. The Government of Kerala by G.0.(MS) No. 20/2012/ LBR dated 03.02.2012 of the Labour and Rehabilitation Department accorded administrative sanction to register a company in the name of Kerala Academy for Skills Excellence [KASE] under Section 25 of the Companies Act, 1956 to act as apex entity to initiate, regulate and co-ordinate focused skill development for different industrial domains - Government of Kerala further decided to create a centralised agency to co-ordinate the skill development activities performed by different departments and by G.O.(P) No. 47/2018/Labour dated 28.05.2018 of the Labour and Skills Department created a State Skill Secretariat and ordered that the Kerala Academy of Skills Excellence which is functioning as the State Skill Development Mission shall function as the State Skill Secretariat. Business Advisory Committees [BAC] were also ordered to be set up in various sectors to actively advice the skill secretariat with respect to the skill development activities in the concerned sector. Taking in to consideration the fact that IIIC has initiated action to get affiliation under various Universities and that no formal recognition has been given to IIIC and the courses conducted there, the Government declares that IIIC, Chavara is a Government - owned institute and the courses that are being conducted in the said institute are approved by the Government. In view of the declaration that IIIC is a Government - owned institute and the approval of the courses conducted by IIIC by the Government of Kerala, IIIC has attained the status of an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognized by law. Consequently, IIIC qualifies to be classified as an educational institution as defined under sub-clause (ii) of clause (y) of Paragraph 2 of the Notification No. 12/2017 CT (Rate) dated 28.06.2017. The courses conducted in Indian Institute of Infrastructure and Construction is exempted from GST as per entry at Si No. 66 of Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017. Issues Involved:1. Whether the educational courses conducted by the Indian Institute of Infrastructure and Construction (IIIC) fall under taxable services as per GST provisions.2. Eligibility of the applicant for GST exemption under Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017.Issue-wise Detailed Analysis:1. Taxability of Educational Courses Conducted by IIIC:The applicant, M/s. Uralungal Labour Contract Co-operative Society Ltd (ULCCS), sought clarification on whether the educational courses conducted at IIIC are taxable under GST. The applicant contended that IIIC is a government-owned institute and the courses are approved by the Government of Kerala, thus seeking exemption under Notification No. 12/2017-Central Tax (Rate).2. Eligibility for GST Exemption:Contentions of the Applicant:The applicant argued that IIIC is a training partner affiliated with the National Skill Development Corporation (NSDC) and that the courses conducted are approved by the Government of Kerala. They provided various government orders and documents to support their claim.Comments of the Jurisdictional Officer:The jurisdictional officer noted that the applicant must produce satisfactory evidence showing they are an approved training partner by NSDC and that the services provided relate to specific items listed under clause (i) to (iii) of entry at Sl. No. 69 of Notification No. 12/2017-Central Tax (Rate).Personal Hearing:During the personal hearing, the applicant reiterated their contentions and submitted additional documents supporting their claim that the courses conducted by IIIC are government-approved.Discussion and Conclusion:First Contention: Affiliation with NSDCThe relevant entry at Sl. No. 69 of Notification No. 12/2017-Central Tax (Rate) provides exemption to services provided by entities such as NSDC, Sector Skill Councils approved by NSDC, and training partners approved by NSDC. The applicant did not produce evidence proving their approval as a training partner by NSDC or Sector Skill Councils in relation to the specified schemes. Thus, the courses conducted at IIIC do not qualify for exemption under this entry.Second Contention: Approval by Government of KeralaThe relevant entry at Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) exempts services provided by educational institutions. The term 'educational institution' includes institutions providing services as part of a curriculum for obtaining a qualification recognized by law. The applicant provided government orders and documents indicating that IIIC is a government-owned institute and the courses conducted are approved by the Government of Kerala. Consequently, IIIC qualifies as an educational institution under sub-clause (ii) of clause (y) of Paragraph 2 of the notification, and the courses conducted are exempt from GST.Ruling:The Indian Institute of Infrastructure and Construction (IIIC) qualifies as an educational institution as defined under clause (y) of Paragraph 2 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Accordingly, the courses conducted at IIIC are eligible for exemption from GST as per entry at Sl. No. 66 of the said notification.