All kinds of representations received from the trade and industry (including start-ups) regarding GST rates on services have been deliberated in the Fitment Committee. Government has exempted various kinds of services in relation to skill development. Decision pertaining to rates of GST and exemption on skill development, start-ups and tourism are taken after due deliberation in GST Council.

There are several services which have been exempt from GST. The details are as given below.

Exemptions in relation to Skill development and start-ups

• Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-
• the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and
• a period of three years has not elapsed from the date of entering into an agreement as an incubatee.
• Taxable services, provided or to be provided, by a Technology Business Incubator or a Science and Technology Entrepreneurship Park recognised by the National Science and Technology Entrepreneurship Development Board of the Department of Science and Technology, Government of India or bio-incubators recognised by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India.
• Any services provided by, (a) the National Skill Development Corporation set up by the Government of India; (b) a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-

(i)  the National Skill Development Programme implemented by the National Skill Development Corporation; or

(ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or

(iii) any other Scheme implemented by the National Skill Development Corporation.

•  Services of assessing bodies empaneled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under the Skill Development Initiative Scheme is exempt from GST.
• Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana implemented by the Ministry of Rural Development, Government of India by way of offering skill or vocational training courses certified by the National Council for Vocational Training are exempt from GST.
• Services provided to the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Government, Union territory administration.

Exemptions is relation to Tourism

Services by a specified organisation in respect of a religious pilgrimage facilitated by the Government of India, under bilateral arrangement is exempt.

Further, supply of tour operators services attracts concessional rate of GST @ 5%, subject to fulfilment of specified conditions.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha.

GST exemption for incubatee and skill development services with concessional tour operator treatment under specified conditions. GST treatment provides targeted exemption and concessional rate mechanisms for services linked to skill development, start ups and tourism. Incubatee services qualify for exemption subject to a turnover threshold and a limited incubation period. Recognised incubators and specified national bodies providing taxable services under approved programmes, assessment agencies, and approved training partners are exempt when services relate to National Skill Development schemes. Government funded training for public administrations is exempt. In tourism, specified organisations' pilgrimage services are exempt and tour operator services receive a concessional GST rate subject to conditions.