NSDC-Approved Training Partners Qualify for GST Exemption Under Entry 69 of Notification No. 12/2017
The AAR, Karnataka held that the applicant, being an NSDC-approved training partner providing services under the Market Led Fee-based Services Scheme implemented by NSDC, qualifies for exemption under entry 69 of Notification No. 12/2017-Central Tax (Rate) dated 28-6-2017, as amended. Both conditions for exemption-approval by NSDC and training related to NSDC schemes-were satisfied. Consequently, the GST rate applicable to the applicant's services under the scheme is nil.
ISSUES:
What is the applicable GST rate on services provided under the "Market Led Fee-Based Services Scheme"?Whether the service provider is eligible for exemption under Entry No. 69 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017'Admissibility of the application under Section 97(2)(b) of the CGST Act, 2017 concerning applicability of a notification and classification of services.
RULINGS / HOLDINGS:
The rate of GST applicable on the services provided under the "Market Led Fee-Based Services Scheme" is Nil.The applicant is eligible for exemption under Entry No. 69 of Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017, as amended, since they are an approved training partner of the National Skill Development Corporation and the services relate to a scheme implemented by NSDC.The application for advance ruling is admissible under Section 97(2)(b) of the CGST Act, 2017 as the questions pertain to the "applicability of a notification issued under the provisions of this act" and the rate of GST applicable to the services.
RATIONALE:
The legal framework applied includes Section 97 and Section 98(4) of the CGST Act, 2017 and KGST Act, 2017, and Rule 104 of the respective CGST and KGST Rules, 2017.Entry No. 69 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, as amended by Notification No. 08/2024-Central Tax (Rate) dated 08-10-2024, exempts from GST "any services provided by a training partner approved by the National Skill Development Corporation in relation to the National Skill Development Programme or any other scheme implemented by NSDC" without conditions.The applicant fulfilled both conditions for exemption: (i) being an approved training partner of NSDC, and (ii) providing training under an NSDC-implemented scheme ("Market Led Fee-Based Services").The provisions of the CGST Act and KGST Act are held to be in pari materia, allowing reference interchangeably for similar provisions.Prior advance rulings on identical issues by other authorities were considered persuasive but the ruling is based on the statutory notification and facts before the authority.
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