Kerala AAR grants GST exemption for 102 approved courses under NEP 2020 curriculum leading to recognized qualifications

The AAR Kerala ruled on GST classification and exemption eligibility for educational services provided by the applicant. The Authority classified 102 Government of Kerala approved courses under SAC 999294 as "Other education and training services not elsewhere classified." These courses, recognized as part of the Four Year Undergraduate Programme under NEP 2020, qualified for GST exemption under Entry 66 of Notification 12/2017-CT (Rate) as they form part of a curriculum leading to a legally recognized qualification. However, the Authority could not rule on courses allegedly approved by NCVET or funded through government/CSR channels due to insufficient documentation. The Authority also determined that services do not qualify for exemption under Entry 4 of the notification, as education delivery is not a mandated municipal function under Article 243W of the Constitution, despite municipalities having responsibility for promoting educational aspects.

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ISSUES:

Whether the educational and vocational training services supplied by the applicant qualify for exemption under Notification No. 12/2017-Central Tax (Rate) (Entries 4, 66, and 69).Appropriate classification of the services supplied by the applicant in relation to:
Courses approved by the Government of Kerala;Courses approved by the National Council for Vocational Education and Training (NCVET);Courses funded by government agencies or corporates under Corporate Social Responsibility (CSR) obligations.
Whether the applicant is liable to pay GST on the said supplies of services.Maintainability of the advance ruling application under Section 103(1) and (2) of the CGST Act in light of changed law and circumstances.Applicability of exemption under Entry No. 4 of Notification No. 12/2017-Central Tax (Rate) for services by governmental authorities.

RULINGS / HOLDINGS:

The advance ruling application is maintainable under Section 103(1)/(2) of the CGST Act due to material changes in law and facts affecting exemption eligibility.Services related to courses approved by the Government of Kerala are classified under SAC 999294 - "Other education and training services not elsewhere classified."Services related to courses approved by NCVET and those funded by government/CSR are broadly classifiable under Heading 9992 - "Education Services," but specific SAC assignment is deferred due to insufficient details.Exemption under Entry 66 of Notification No. 12/2017-Central Tax (Rate) applies to services related to Government of Kerala approved courses forming part of a curriculum leading to a qualification recognised by law.Exemption under Entry 69, as amended by Notification No. 08/2024-Central Tax (Rate), applies to services provided by NCVET-recognized Awarding Bodies, including the applicant, for NSQF-aligned qualifications approved by NCVET, subject to conditions specified therein.No exemption ruling is granted for courses funded by government agencies or corporates under CSR in absence of specific exemption notification or supporting evidence.The applicant is not liable to pay GST on services related to Government of Kerala approved courses and NCVET-approved NSQF-aligned courses meeting exemption conditions.The applicant's services do not qualify for exemption under Entry No. 4 of Notification No. 12/2017-Central Tax (Rate) as the imparting of education is not a function entrusted to municipalities under Article 243W of the Constitution.

RATIONALE:

The ruling applies the provisions of the CGST Act, 2017, and the Kerala SGST Act, 2017, including Notification No. 12/2017-Central Tax (Rate) and its subsequent amendments (notably Notifications 08/2024-CT(Rate) and 06/2025-CT(Rate)) governing GST exemption on educational and skill development services.The Court relied on the statutory definition of "educational institution" under Entry 66, requiring that courses form part of a curriculum for a qualification recognised by law, without mandating integral or prerequisite status for the qualification.Notification No. 08/2024-CT(Rate) expanded Entry 69 to include NCVET-recognized Awarding Bodies, Assessment Agencies, and Training Bodies, reflecting a doctrinal shift from NSDC-centric exemption to a broader skill ecosystem regulatory framework under NCVET.The ruling recognizes the applicant's formal recognition as an Awarding Body by NCVET, valid until 04-07-2025, and presumes continuation of this status for the ruling's applicability.The Court noted the absence of sufficient documentary evidence for courses funded by CSR or government agencies, emphasizing that exemption eligibility depends on the nature of the course and notification coverage, not funding source.Regarding Entry No. 4 exemption, the ruling interprets the scope of "functions entrusted to a municipality under Article 243W" and finds that imparting education is not such a function, thereby excluding the applicant's services from this exemption.The ruling follows precedent and statutory interpretation principles, with no dissenting or concurring opinions noted.

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