Aircraft training is not exempt education unless it leads to a qualification recognised by law

Aircraft type rating training for commercial pilots was treated as a commercial educational service, but it did not qualify for GST exemption under entry 66(a) because it was not part of a curriculum leading to a qualification recognised by law. The course completion certificate was only a prerequisite for appearing in the DGCA examination and did not itself confer a statutory licence or legal entitlement to fly. Since the legal rating and licence arise only after the prescribed statutory requirements and DGCA examination are completed, the exemption was unavailable.

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Issues: Whether the appellant's aircraft type rating training for commercial pilots is education as part of a curriculum for obtaining a qualification recognised by law, so as to fall within entry 66(a) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and qualify for GST exemption.

Analysis: The training was held to be a commercial supply of educational/training services, but that alone did not make the appellant an educational institution for the exemption. The exemption applies only where the service is part of a curriculum leading to a qualification recognised by law. The course completion certificate issued by the appellant was found to be only a prerequisite for appearing in the DGCA examination and not a statutory qualification in itself. The DGCA, not the appellant, conducts the examination and endorses the licence only after the prescribed statutory requirements are met. Rule 6A of the Aircraft Rules, 1937 and the relevant provisions of Schedule II were relied upon to show that training by itself does not confer the legal entitlement to fly or obtain the aircraft rating.

Conclusion: The appellant's training does not constitute education leading to a qualification recognised by law and is not covered by entry 66(a) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The exemption is unavailable.

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