AI Drafter 
TaxTMI 
TaxTMI 
2022 (10) TMI 780
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....of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted. 4. BRIEF FACTS OF THE CASE: 4.1 Statement of relevant facts as per the applicant having a bearing on the question(s) on which Advance Ruling is required is reproduced below- 4.2 Company Background: The Company was incorporated on 21st April 2020 under the Companies act 2013 with its registered office address at Plot No 30, Brigade Towers, East Wing, Ground Floor, Financial District, Hyderabad - 500032, Telangana, India. Company is registered under Goods and services Tax vide registration no. 36AAGCN9336F1Z9, in the state of Telengana. It was founded by IIT Bombay, IIT Kharagpur and IIIT Hy....
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.... (iv) financed by a company or other corporate body under a program or as part of its CSR obligation, (v) financed by any charitable organization, or (vi) a combination of any of the above. NSDC, through this Scheme aims to - • Support Fee-based Services in high growth sectors and emerging technologies thereby creating large pool of skilled and certified workforce for these sectors; • Design, support and enable innovations in the fee-based training ecosystem: • Scale outcome oriented and successful fee-based training programs by providing financial and/or technical assistance, including concessional skill loans, industry partnerships, apprenticeship, access to Skill India Portal ("SIP") and training networks and other enabling support: • Create large pool of skilling, re-skilling and upskilling Fee based Services to enable life-long learning and improved productivity of working professionals; • Aggregate data of certified trainees on a single digital platform for creating a repository and reporting and monitoring though SIP. Any Eligible Entity having relevant experience in Skill Development....
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....ld be construed under the "any other scheme implemented by the NSDC" as required under serial no.69 of the Notification and the benefit of GST exemption would be available to the applicant from the date of its agreement with NSDC? Q2: Whether the training programmes offered in collaboration with other business partners, imparted by business partners of the applicant under a sub contract would be construed under the "any other scheme implemented by the NSDC" as required under serial no.69 of the Notification and the benefit of GST exemption would be available to the applicant? Q3: Exemption of GST is available to the company as a whole as long as its services fulfill the criteria laid down under serial no.69 of the said notification and not limited to Telangana GST? 6. APPLICANT'S INTERPRETATION OF THE LAW 6.1 The chief contention of the applicant is that they are training partner of National Skill Development Corporation (NSDC); and that they have entered into an agreement with NSDC to provide training as a partner in the notified "scheme for market led Feebased services". 6.2 Applicant is rendering education and training services under the following models: CCBP....
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....fication and Monetary Reward Scheme; or -any other Scheme implemented by the National Skill Development Corporation. -On Simple reading of the above provisions, the applicant is of the view that it meets all the conditions laid down under the said notification and is eligible for the exemption of GST Question 2: Whether the training programmes offered in collaboration with other business partners,- Imparted by business partners of the applicant under a sub contract would be construed under the "any other scheme implemented by the NSDC" as required under serial no.69 of the Notification and the benefit of GST exemption would be available to the Applicant? - As subcontract is made simply for the furtherance of the objectives of the scheme and is on a principal to principal basis, the benefit of GST exemption shall be made available to the Applicant Question 3: Exemption of GST is available to the company as a whole as long as its services fulfill the,- Criteria laid down under Sr. no. 69 of the said Notification and not limited to Telangana GST.s -Provisions of both, the CGST Act and Telangana GST act are the same except for certain spe....
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.... claiming that they are in the business of skilling the youth with the objective of helping them find decent jobs, make them employable and to help them earn a better living. The applicant claims that the courses enable college students from engineering & technology colleges to become industry ready by the time of their graduation and achieve high-paid software jobs. 8.2 The applicant is further claiming that they are training partners of NSDC and educational courses offered by them are in relation to a Scheme implemented by the National Skill Development Corporation and all these courses are directed to skill development and to increase employability in India. After going through the details as given in their application by the applicant, we find that the main question of the applicant is :- Q1: Whether training programmes offered by the applicant, as approved by NSDC would be construed under the "any other scheme implemented by the NSDC" as required under serial no.69 of the Notification and the benefit of GST exemption would be available to the applicant from the date of its agreement with NSDC? And in continuation of the same their further query is that ....
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....cheme; or (iii) any other Scheme implemented by the National Skill Development Corporation. 8.4 In view of this in order to examine if the applicant fulfils the conditions for exemption as given in Notification No. 12/2017, we are required to examine as to whether services provided by applicant fall into the category of services provided by a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to any other Scheme implemented by the National Skill Development Corporation. 8.5.1 In this context it is relevant to touch upon the key aspects of role and finctions of NSDC and the nature of scheme implemented by NSDC. We find that National Skill Development Corporation (NSDC) is a not-for-profit public limited company incorporated on July 31, 2008 under section 25 of the Companies Act, 1956 (corresponding to section 8 of the Companies Act, 2013). NSDC was set up by Ministry of Finance as Public Private Partnership (PPP) model. The Government of India through Ministry of Skill Development & Entrepreneurship (MSDE) holds 49% of the share capital of NSDC, while the private sector has the balance 51% of the share capi....
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....l Development Corporation. Extract of Overview of this Scheme offered by NSDC (Exhibit-6) produced before the Committee members is as under:- • Scheme for market led fee-based services by National Skill Development Corporation was launched on May 18, 2022 • Scheme shall have a period of 10 (Ten) years with effect from May 18, 2022, i.e. from the financial year 2022-23 to financial year 2031-32. • For the purpose of this scheme,- o "Services" shall mean one or more of the following services proposed by the Applicant and approved under the Scheme by NSDC: o "Fee-based Services" shall mean Services delivered by the Partners, for which the fee for the Services is financed under either of the following models - (i) self-financed by the candidate, (ii) financed by candidate or training partner through a loan or under an income sharing arrangement with the Partner, financed by an employer, (iv) financed by a company or other corporate body under a program or as part of its corporate social responsibility ("CSR") obligation, or (v) financed by any charitable organization or (vi) a combinat....
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.... industry, self-employment opportunities or entrepreneurship and upskilling and such Services may be eligible for Cobranding opportunity with NSDC for approved Services under the Scheme. Thus this Scheme also intends to establish a framework for aggregate and standardized training in high growth sectors by engaging 'for-profit' entities, 'not for-profit' entities, corporates, start-ups, trust, societies, foundations etc., as Partners on service-to-service basis and provide joint certification with the Partner to the candidates, wherever such joint certification is desirable and feasible. The Scheme will help in creating a verifiable repository of data of all the candidates being trained by the Partners under the Scheme. 8.8 We find that the applicant has provided a photocopy of the agreement dated 23.06.2022 for partnership entered with NSDC for executing training under the above scheme for market led Fee-based services (Exhibit 4). Relevant clauses of agreement provided by the applicant are reproduced below:- ... Clause 2.1 The Second Party (Applicant) hereby agrees to register under the Scheme for Non-Funded Affiliation providing various Fee-based S....
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....this entry the services supplied by the applicant as approved training partner of NSDC in relation to any other scheme implemented by the NSDC as required under serial no.69 of the Notification are exempt but not the services received by the applicant from others including a sub-contractor who supplies such services to the applicant who is not a training partner approved by the National Skill Development Corporation or the Sector Skill Council. 9. The ruling is given as below: In view of the above discussion, the questions raised by the applicant are clarified as below: Questions Ruling 1. Whether training programmes offered by the applicant, as approved by NSDC would be construed under the "any other scheme implemented by the NSDC" as required under serial no.69 of the Notification and the benefit of GST exemption would be available to the applicant from the date of its agreement with NSDC? Yes, the services offered by the applicant fall under SI.No.69 (d) (iii) of Notification No. 12/2017 of CGST notifications and therefore eligible for exemption under this notification for CGST and SGST. 2. Whether the training programmes offered in collaboration with other ....