TaxTMI 
TaxTMI 
2018 (10) TMI 681
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....ed by NSDC and will be approved by NSDC as and when the relevant QP/NOS would be defined by NSDC. In the interim period, NSDC has given exceptional approval on such courses. Till the time QP/NOS are defined or such educational courses and are eventually approved by NSDC, whether such courses will be treated as in relation to National Skill Development Programme implemented by NSDC?" Q.3.- "In certain situations, NSDC approved educational courses are subsequently, upgraded by the Applicant within pre-defined QP/ NOS framework, by way of adding more topics/ content/modules. However, such modified version of NSDC approved educational courses have not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented by NSDC?" Q.4.- "If the answer to Q.1, Q.2 and Q.3 are Yes, then whether the benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?" Q.5.- "If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be still available if such e....
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....nd marketing as well as technical programs such as Fitter, Basic Electrical and Sales Person Retail. II.4 For imparting the aforesaid training, the Applicant has developed its own proprietary training formats, materials and methodology, which are conducted at its centers located in various cities and sometimes at location of business institutions and Govt. organisations. The clientele of the Applicant includes individuals, corporates, educational institutions, Govt. organizations. II.5. The technical and vocational educational courses offered by the Applicant are either funded by NSDC / Central Govt./ State Govt. or are paid up courses which are enrolled by individuals, corporates. II.6 Applicant is an approved training partner of NSDC and till date, 12 educational courses offered by it have been approved by NSDC. Further, 2 educational courses for which QP/NOS have not been defined by NSDC yet, have been conditionally approved by NSDC. All such courses offered by the Applicant are directed for skill development and to increase employability in India. II.7 The Applicant has tie-ups with various educational institutes / Govt. organizations, including NSDC, National Stock....
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....s accounting (6) Financial planning (7) Business analytics (8) Sales person retail (9) Basic electrical training (10 CGSC Fitter Mechanical Assembly (11) Data Science (12) IFRS Copy of the approval received from NSDC in relation to all the aforesaid educational courses have been enclosed herewith as ''Exhibit 3." GST provisions IV.4. Entry 69 to the Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 ('the Notification') exempts from GST levy: Education services (specified under HSN 9992) 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....
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....ns to achieve its mission and objectives of elevating skilled manpower. In this regard, NSDC develops partnerships with multiple stakeholders and build on current efforts of such stakeholders, rather than undertaking initiatives directly and duplicating efforts. IV.10. It is evident from the above that, NSDC to achieve its objectives, does not undertake / implement any schemes, programmes on its own, rather, it has partnered with various training institutions imparting training courses /programmes related to skill development. IV-11. Basis the information available on NSDC portal (hereinafter referred to as 'SDMS'), we understand that the educational courses offered by NSDC training partners, should contain pre-defined qualification standards / knowledge parameters. In this regard, Ministry of Human Resource Development has designed and notified qualification assurance framework i.e. National Vocational Education Qualifications Framework (hereinafter referred to as 'NVEQF'), which outlines qualifications / levels / competencies of knowledge and skills that a learner must possess, for the purpose of getting any given job role. Within such NVEQF framework, for each job role wit....
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.... training partners is done by NSDC who in turn reports the same to Ministry of Skill Development and Entrepreneurship ('MSDE'). IV.17. In this connection, for each month, quarter, financial year, in relation to each of the approved educational courses, the Applicant is required to report and upload the following details, on the SDMS (NSDC portal): • Applicant's progress towards yearly skill achievement targets; • Annual and monthly performance of the Applicant such as number of students enrolled, trained, placed, up- skilled; • Quarterly and yearly training and placements achievements of the Applicant; • Details of each and every student who was enrolled with the Applicant such as personal details, date of enrolment, date of passing out, batch start and end date, training status, etc.; • Status of active and inactive educational centres of the Applicant; • Details of corporate training programs; • Details of any other skilling schemes The documentary evidence of sharing the aforesaid information by the Applicant with NSDC has been enclosed herewith as 'Exhibit-8'. IV.18. Further, NSD....
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....ates to the matter as to: "The Applicant offers certain educational courses for which qualification standards / framework i.e. QP/ NOS has not been defined by NSDC and will be approved by NSDC as and when the relevant QP/ NOS would be defined by NSDC. In the interim period, NSDC has given exceptional approval on such courses. Till the time QP/ NOS are defined for such educational courses and are eventually approved by NSDC, whether such courses will be treated as in relation to National Skill Development Programme implemented by NSDC" V.2. As mentioned above under Para IV.11 to IV.13, NVEQF is qualification assurance framework that outlines different type of skill standards, a person should possess for a given job role and also, outlines learning outcomes to ensure particular target level of skill has been achieved in a training program. In this regard, NSDC has defined NOS / QP for many job roles. Such QP / NOS should be aligned to educational courses imparted by NSDC training partners. NSDC has defined QP / NOS for many job roles and they are in in process to outline QP / NOS for other job roles. NSDC's educational course approval process V.3. In connection to job rol....
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....DC of skill development and reducing unemployment in India and accordingly, should be equated as in relation to National Skill Development Programme implemented by the NSDC. II. Question of law: (3) "In certain situations, NSDC approved educational courses are subsequently, upgraded by the Applicant within pre-defined QP/ NOS framework, by way of adding more topics/ content /modules. However, such modified version of NSDC approved educational courses have not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented by NSDC?" VI.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant relates to the matter as to: "In certain situations, NSDC approved educational courses are subsequently, upgraded by the Applicant within pre-defined QP/ NOS framework, by way of adding more topics/ content/modules. However, such modified version of NSDC approved educational courses have not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented by NSDC" VI.2. For the purpose of remaining ....
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.... provides that: Education services (specified under HSN 9992) 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 transaction Co-relation of the Notification with the facts of Applicant VII.3. The Applicant is training partner approved by NSDC. VII.4. As mentioned above under Paras IV.4 to IV_20, in absence of any specific National Skill Development Programme announced by NSDC as implemented by it, the educational courses offered by the Applicant which have been approved by NSDC, ....
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....specify class of recipients to whom services should be provided so that the benefit of the Notification would be available. The Notification does not specify that the services should be rendered by the approved training partner of NSDC, to individuals or to corporates or to colleges or to Govt. organisations, for availing GST exemption. VIII.5. Accordingly, in absence of any such restriction it is evident that as long as the educational courses offered by the approved training partner are in relation to the National Skill Development Programme implemented by NSDC, GST exemption would be available, irrespective of constitution of the recipient. VIII.6. The Applicant would like to submit that the educational courses which have been approved by NSDC and are reported to NSDC towards achievements of skill development targets of the Applicant and are in relation to the National Skill Development Programme implemented by NSDC, regardless of being offered to business corporates or colleges or individuals and GST exemption should be available on the same. IV. Question of law: (6) "Whether the NSDC approved educational courses which are actually imparted by the business partners of ....
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....quired to charge course fees to students for which invoice / acknowledged receipt will be issued by business partner in the name of the Applicant. • Subsequent to collection, the business partner is required to deposit such fees to the bank account of the Applicant. • The Applicant shall intimate to business partner details of all programmes for which business partner is required to render services. • The Applicant shall provide programme Structures for each academic year which business partner is required to follow and assist business partner in preparing time table for programme and services to be rendered in connection therewith. • The Applicant shall provide students course material application form, brochure, advertisement materials, student' s identity card, login credentials to access course material electronically, to the business partner who in turn will give the same to the students. • Business partner is required to maintain financial and Other records in the specified format, as required by the Applicant. • The premises that will be used by business partner under the said agreement would be ac....
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....ess partner to share few of its obligations such as to provide educational courses to students using the materials, curriculum provided by the Applicant and under the direction of the Applicant, raise invoice upon students in the name and on behalf of the Applicant, collect fees from students on behalf of the Applicant. IX.7. It is also, clearly visible that the business partner is required to use 'the Company i.e. PROSCHOOL' training materials, training formats, know-how and expertise. For the said purpose, the Applicant has granted non-exclusive, non-transferable, non-assignable, royalty free, limited term, to business partner, to use its trade marks. IX.8. Further, the business partners receive fees for undertaking the abovementioned activities from the Applicant and raises invoice upon the Applicant. IX.9. ln light of the above, it is amply evident that, the Applicant has sub-contracted / outsourced few of its obligations of imparting educational services and training, to the business partners. Further, business partners are rendering services to the Applicant and not to the students, for which it is being compensated by the Applicant. IX.10. Since the educational c....
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....onal 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 transaction X.4. Since, the educational courses by the Applicant through business partners, are in relation to National Skill Development Programme implemented by NSDC therefore, the Applicant is eligible for GST exemption in connection with such educational courses, in terms of the Notification. PRAYER IN ADVANCE RULING Given the facts and circumstances, the Applicant prays before the Hon'ble Authority that: • The educational courses approved by NSDC and conducted by the Applicant should be treated as is in relation to National Skill Development Programme implemented by NSDC. • The educational courses conducted by the Applicant which have been conditionally approved by NSDC should be treated as is in relation to National Skill Development Programme implemented by NSDC. • The upgraded versions of educational courses conducted by the Applicant which have been approved prior to modification....
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....l and vocational educational courses offered by the applicant are either funded by NSDC/Central Govt. / State Govt. or are paid up courses which are enrolled by individuals corporates. The Applicants is an approved training partner of NSDC and till date, 12 educational courses offered by it have been approved by NSDC. Further, 2 educational courses for which QP/NOS have not been defined by NSDC yet, have been conditionally approved by NSDC. All such courses offered by the Applicant are directed for skill development and to increase employability in India. The Applicant has tie-ups with various educational institutes/Govt. organizations, including NSDC.. National Stock Exchange Academy, Symbiosis International University, Indira Institute of Management, Lovely Professional University, Chartered Financial Institute, Chartered Institute of Management Accountant. The applicant has raised following query:- Qs.No. Questions raised by the applicant Submission as per ACT & RULE 1. Whether educational courses offered by the applicant which have been approved by National Skill Development Corporation would be construed as in relation to National Skill Development Prog....
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...., by way of adding more topics/content/modules. However, such modified version of NSDC approved educational courses has not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented NSDC? Decision will be taken by NSDC 4. If the answer to QA, Q.2 and Q.3 are Yes, then whether the benefit of GST exemption as per Notification No 12/2017 - Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant? If all the norms of NSDC fulfills then yes. 5. If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No.12/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to co orates and business institutions? No. 6. Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centers located across the country, will be considered as offered by the Applicants? Should be approved by the NSDC not for sub-contract of the applicant. 7. If answer to Q.6 is Yes....
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....ndia. Skill India harbours responsibility for ensuring implementation of Common norms across all skill development programs in the country so that they are all standardized and aligned to one object. The ITI ecosystem has also been brought under Skill India for garnering better results in vocational education and training. The success of a nation always depends on the success of its youth and Skill India is certain to bring a lot of advantage and opportunities for these young Indians. The time is not far when India will evolve into a skilled society where there is prosperity and dignity for all. 04. HEARING The case was taken up for Preliminary hearing on dt. 03.04.2018 with respect to admission or rejection of present application when Sh. Santosh Dalvi, Advocate alongwith Ms. Shradha Didwania, Sh. Sanjay Choudhary CEO, Sh. Ajay Nayak, C.A., Sh. Tanveer Bhagat, C.A. appeared and made submissions orally for admission of application as per contentions made in ARA. They were orally requested to confirm and obtain in writing from NSDC as to what are the programmes that are being undertaken by NSDC under National Skill Development Programme and submit the same. Jurisdictiona....
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....ed by them would they be eligible for exemption under Sr.No. 69 of the above said Notification. We find that rest of their queries in the present application would rest on their above two main queries. In view of this we would first be required to ascertain if the educational courses that are being offered by the applicant and approved by NSDC can be taken to be in relation to National Skill Development Programme implemented by NSDC. We find that at the time of the preliminary hearing they were orally requested to confirm and obtain in writing from NSDC as to what are the programmes that are being undertaken by NSDC under National Skill Development Programme and submit the same. We find that they have not submitted anything in respect of the above request, from NSDC. In view of this in order to ascertain the same, we are required to examine as to what is the exact nature and functions of NSDC and what services would be construed to be in relation to National Skill Development Programme implemented by NSDC. We find that Notification No. 12/2017-CT in respect of the present matter reads as under:- Notification No. 12/2017- Central Tax (Rate) New Delhi, the 28th June....
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....it is not clear whether the applicant continues to be a training partner of M/S NSDC for the current Financial Year. Secondly we are required to examine if the applicant who is an approved training partner of M/s. NSDC is providing any services in relation to National Skill Development Program implemented by M/s. NSDC. With regard to the above we are required to ascertain as to what is the National Skill Development Programme implemented by NSDC. We find that M/s. NSDC is a non-profit company set up by the Ministry of Finance which aims to promote skill development by catalysing creation of large, quality and for profit vocational institutions. For this purpose it - 1. provides funding to build scalable and profitable vocational training initiatives 2. to enable support system which focuses on quality assurance, information systems and train the trainer academies either directly or through partnerships. 3. It acts as a catalysing skill development by providing funding to enterprises, companies and organizations that provides skill training. 4. It also develops appropriate modules to enhance, support and coordinate private sector initiatives....
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....ind details on the site of Ministry of Skill Development and Entrepreneurship as under:- Skill India offers courses across 40 sectors in the country which are aligned to the standards recognised by both, the industry and the government under the National Skill Qualification Framework. The courses help a person focus on practical delivery of work and help him enhance his technical expertise so that he is ready for day one of his job and companies don't have to invest into training him for his job profile. The Skill Mission launched by the Prime Minister on 15 July 2015, has gathered tremendous steam under the guidance of Shri Rajiv Pratap Rudy, Union Minister of State for Skill Development and Entrepreneurship, during the last one year. The target to train more than a crore fresh entrants into the Indian workforce has been substantially achieved for the first time. 1.04 Crore Indians were trained through Central Government Programs and NSDC associated training partners in the private sector. For the first time in 68 years of India's independence, a Ministry for Skill Development & Entrepreneurship (MSDE) has been formed to focus on enhancing employability of the youth throu....
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....ty. We find that various schemes of skill development that are being implemented by the Ministry of Skill Development and Entrepreneurship are:- Schemes Pradhan Mantri Kaushal Vikas Yojana (PMKVY) Sankalp Udaan Star Polytechnic Schemes Vocationalization of Education. With reference to the claim of exemption from GST by the applicant in respect of Sr. No. 69 of Notification 12/2017-Central Tax, we find that the applicant himself has stated that their claim of exemption under Sr. No. 69 of this Notification is only in respect of their claim that they are an approved training partner of NSDC and are providing services in relation to (i) The National Skill Development Programme implemented by NSDC. In their application itself they are claiming and stating clearly that the services being provided by them are not in relation to and are not covered under (ii) A Vocational Skill Developmental Course under the National Skill Certification and Monetary Reward Scheme (iii) Any other scheme implemented by the NSDC. Thus it is clearly stated by them that they are not covered and are not eligible f....
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....mption in this respect as they are a services recipient and not service provider in relation to NSDC. In addition to this we also find secondly that, the claim of the applicant with respect to GST is also made by the applicant basing their contentions on the premise that there is no explicit National Skill Development Programme implemented by NSDC. Here in view of the above we are required to examine National Policy on Skill Development, National Skill Development Mission and various organisations that are working with or under the Ministry of Skill Development and Entrepreneurship. We find that Ministry of Skill Development and Entrepreneurship is responsible for coordination of all Skill Development efforts across the country, removal of disconnect between demand and supply of skilled manpower, building the technical and vocational training framework, skill upgradation, building of new skills and innovative thinking not only for the existing jobs but also jobs that are to be created. It is aided in these initiatives by its functional arms which are:- • National Skill Development Agency (NSDA). • National Skill Development Council (NSDC). ....
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....ross sectors to achieve skilling at scale with speed and standards. It will be implemented through a streamlined institutional mechanism driven by Ministry of Skill Development and Entrepreneurship (MSDE). Key institutional mechanisms for achieving the objectives of the Mission have been divided into three tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission. Mission Directorate will be supported by three other institutions: 1. National Skill Development Agency (NSDA). 2. National Skill Development Corporation (NSDC) and 3. Directorate General of Training (DGT) - all of which will have horizontal linkages with Mission Directorate to facilitate smooth functioning of the national institutional mechanism. Seven sub-missions have been proposed initially to act as building blocks for achieving overall objectives of the Mission. They are: (i) Institutional Training, (ii) Infrastructure, (iii) Convergence, (iv) Trainers, (v) Overseas Employment, (vi) Sustainable Livelihoods, (vii) Leveraging....
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....our Market Information System (LMIS). • Take affirmative action for advocacy. • Ensure that the skilling needs of the disadvantaged and the marginalized groups like SCs, STs, OBCs, minorities, women and differently abled persons are taken care of and. • Discharge any other function as may be assigned to it by the Government of India. Besides anchoring and implementation, the National Skills Qualifications Framework (NSQF), some of the other actions taken by the NSDA are as under: 1. Rationalization of the Skill Development Schemes of the Government of India 2. Creation of an integrated Labour Market Information System 3. Engagement with States 4. Skills Innovation Initiative 3.--- National Skill Development Corporation The National Skill Development Corporation India (NSDC) was setup as a one of its kind, Public Private Partnership Company with the primary mandate of catalysing the skills landscape in India. NSDC is a unique model created with a well thought through underlying philosophy based on the following pillars: • 1. Create: Proactively catalyse creation of large, quality vocatio....
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.... entrepreneurs working on innovative business models to address gaps in the skilling ecosystem, including programs for persons with disability. • Over 5.2 million students trained • 235 private sector partnerships for training and capacity building, each to train at least 50,000 persons over a 10-year period. • 38 Sector Skill Councils (SSC) approved in services, manufacturing, agriculture & allied services, and informal sectors. Sectors include 19 of 20 high priority sectors identified by the Government and 25 of the sectors under Make in India initiative. • 1386 Qualification Packs with 6,744 unique National Occupational Standards (NOS). These have been validated by over 1000 companies. • Vocational training introduced in 10 States, covering 2400+ schools, 2 Boards, benefitting over 2.5 lakh students. Curriculum based on National Occupational Standards (NOS) and SSC certification. NSDC is working with 21 universities, Community Colleges under UCC/ AICTE for alignment of education and training to NSQF. • Designated implementation agency for the largest voucher-based skill development program, Pradhan Man....
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....view of the above we clearly find that in broader terms there is National Policy on Skill Development which is very broad and has a very broad vision as well. It envisions the establishment of a National Skill Development initiatives with the following mission:- "National Skill Development initiative will empower all individuals through improved skills, knowledge, nationally and internationally recognized qualifications to gain access to decent employment and ensure India's competiveness in the global markets. Within this broad policy framework, there is National Skill Development mission launched on 15.07.2015 by the Hon'ble Prime Minister. The mission has been developed to create convergence across sectors and states in terms of skill training activities. It would not only consolidate and coordinate skilling efforts but also to expedite decision making across sectors to achieve skilling at scale with speed and standards. Within this broad framework as discussed above there is in the nature of actual schemes, actions and quantifiable deeds that are to be undertaken by the Government, its organizations and agencies or institutions or in any other manner as decided and d....
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....ss six sets of criteria: • Employer view of demand for the specific skills • Alignment with the NSDC's mission • Robustness Of overall plan and operating model • Ability to leverage partnerships • Ability to leverage financial requirements • Ability to leverage management capability Thus we find that the above functions of NSDC are in the nature of encouraging and supporting private sector in skill development which is also one of its mandate and functions. Apart from this it is also the implementing agency for various schemes such as Pradhan Mantri Kaushal Vikas Yojana , Sankalp, Udaan, etc. Thus it can be easily seen that if the intent of the Legislature had been to extend the benefit of exemption of present Notification in respect of all activities in relation to skill development done by NSDC, in that case the wordings Of the Notification would not have been restrictive, which is very clear when we see that in the Notification, exemption benefit is restricted and would be applicable only in respect of services provided in relation to national Skill Development Programme implemented by NSDC. I....