Skill Development - DDU-GKY

[Guest]

Are services provided by Training Partners under DDU-GKY by way of offering training courses certified by SSCs exempted from GST?

[Pardeep Gandotra]

In my opinion Services by training partners in ddugky skill development program falls under composite supply as training services are ancillary to principal supply. Since the principal supply under ddugky skill development program is exempt the ancillary supply tax rate will also be nil.

ca pardeep gandotra

9419190248

[Pardeep Gandotra]

The indirect tax appellate tribunal has ruled that there is no service tax liability on payments based on revenue sharing arrangements.

In a recent order, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax can not be imposed on the amount paid by theatre owner PVS Multiplex India to film distributor Mukta Movie. In view of this services provided training partners on revenue sharing basis will be exempt from gst.

ca pardeep gandotra

9419190248

AI Summary

Composite supply: ancillary training services under DDU-GKY treated as nil-rated when principal supply is GST-exempt. Training services under DDU GKY are characterized as a composite supply with training ancillary to an exempt principal supply, so the ancillary component is treated as nil rated for GST; alternatively, precedent declining service tax on revenue sharing payments is invoked to argue that training partners paid on revenue sharing arrangements under DDU GKY are likewise outside GST liability.