2025 (8) TMI 477 - AAR - GST

GST Exemption Granted for NSDC-Approved Training Partners Under Notification No. 12/2017 Entry 69

In Re: M/s. Intellipaat Software Solutions Pvt. Ltd.,

The AAR, Karnataka held that the applicant, being an approved training partner of the NSDC and providing services under the Market led Fee-based Services ... Levy of GST - services provided by the applicant under the Market led Fee-based Services Scheme - eligibility for exemption under entry 69 of N/N. 12/2017-Central Tax (Rate) dated 28-6-2017 - HELD THAT:- The above entry No. 69 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended vide Notification No. 08/2024-Central Tax (Rate) dated 08.10.2024 provides that 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 the National Skill Development Corporation, covered under SAC 9983 or 9991 or 9992 are exempted unconditionally, subject to fulfilment of the following conditions:- (i) the service provider must be a training partner approved by the NSDC and (ii) the training has to be in relation to the National Skill Development Programme or any other scheme implemented by the National Skill Development Corporation. In the instant case, the Applicant has stated that they are an approved training partner of National Skill Development Corporation and has submitted a copy of the certificate from NSDC certifying the same. Thus, the applicant has satisfied the first condition - the Applicant has also stated that they have entered into an agreement with NSDC for executing the “Market led Fee-based Services” scheme which is introduced and implemented by the NSDC. Thus, the applicant has satisfied the second condition also. Since the Applicant has satisfied both the conditions mentioned supra in para 12, the services provided by the Applicant in the instant case are exempted. The rate of GST applicable on the services provided by the applicant under the “Market led Fee-based Services Scheme” is Nil - The applicant is eligible for exemption under entry 69 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, as amended. 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 69 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 (as amended)? RULINGS / HOLDINGS: The applicable GST on the services provided under the 'Market led Fee-based Services Scheme' is Nil.The service provider is eligible for exemption under entry 69 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 as amended, given that they are an approved training partner of the National Skill Development Corporation and the services are rendered in relation to a scheme implemented by NSDC. RATIONALE: The Court applied the provisions of Section 97 and Section 98(4) of the CGST Act, 2017 and corresponding provisions of the KGST Act, 2017, interpreting Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 and its amendment Notification No. 08/2024-Central Tax (Rate), dated 08.10.2024.Entry 69 exempts '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 the National Skill Development Corporation' at a Nil rate of GST.The service provider satisfied both conditions for exemption: (a) approval as a training partner by NSDC, evidenced by certificate, and (b) provision of services under the 'Market led Fee-based Services' scheme implemented by NSDC.The Court noted the CGST Act and KGST Act are in pari materia and interpreted the exemption notification strictly according to its terms without deviation.