TaxTMI 
TaxTMI 
2025 (8) TMI 548
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....ught advance ruling as to "Whether the applicant is eligible for exemption under entry no. 69 of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 on the services provided by the applicant to the students at Kalvium campus/ at Partner Universities' campus in relation to the "Market led Fee-based Services Scheme" implemented by National Skill Development Corporation ("NSDC")?". 4. Admissibility of the application: The question is about the "applicability of a notification issued under the provisions of the CGST/KGST Act 2017" and hence is admissible under Section 97(2)(b) of the CGST Act 2017. 5. Brief Facts of The Case: The applicant has furnished the following facts relevant to the issue: 5.1 The Applicant states that their mission is to address the problem of unemployment and poverty in the country by empowering disadvantaged youth with in-demand skills of the IT/ITeS sector and preparing them for successful careers. Kalvi makes the students employable by bridging the gap between academic education versus the industry requirements. Kalvi graduates experience significant financial upliftment, often earning a substantial stipend while pursuing the program. Nota....
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....d monitoring upskilling / reskilling by its training partners. 5.6 The Applicant states that Kalvi had submitted a proposal with NSDC for registering itself as an approved training partner under the aforesaid scheme. NSDC, after duly assessing the viability of the Proposal and the training programs of Kalvi, has approved Kalvi's proposal on January 25, 2024 and has approved Kalvi as its training partner under the Scheme for 3 years, which can be further renewed in writing by NSDC and Kalvi, for execution of the education/ training programs. 5.7 The Applicant states that by way of the above-mentioned agreement, NSDC has approved the following training programs for execution by Kalvi in relation to the Market led Fee-based Services Scheme on January 25, 2024: SI. No Course Title Sector Course Duration Candidate Eligibility 1 Software Product Engineering - 1 IT/ITeS 10 months 12th pass 2 Software Product Engineering - 2 IT/ITeS 12 months 12th pass + SPE-1 3 Software Product Engineering - 3 IT/ITeS 12 months 12th pass + SPE-1 +SPE-2 Thereafter on June 05, 2024, NSDC has approved the following additional training progr....
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....nts. b) At Partner Universities' campus - Kalvi to enter into agreement with engineering & technology universities/ colleges whereby Kalvi will undertake to provide NSDC approved certification courses in IT/ITeS sector to the students of university at their campus. University will collect the entire program fee from the students for the degree programs inclusive of the fee for enrolment in the courses offered by Kalvi and thereafter, disburse the same to Kalvi. Further, upon completion of each program, Kalvi will provide a co-branded and barcoded certificate, provided by NSDC, to the students. 5.10 The Assistant Commissioner, Division-7, Bengaluru East Commissionerate, in response to this office letter dated 21.06.2024, offered comments inter alia stating as under: The applicant, prima facie, is eligible on the basis of submissions/ documents enclosed with the application dated 11.06.2024. However, the eligibility to exemption depends on the following modes of transactions/method of provision of service. (i) Transactions between M/s KALVI CAREER EDUCATION PRIVATE LIMITED and the students under skill development programs by NSDC. (ii) Transacti....
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....l be engaged in the provision of education programs to students at Kalvium campus / at Partner Universities' campus for a consideration and hence, the same falls under the purview of supply and accordingly shall be leviable to GST. 6.2 The Applicant states that, the Government has notified certain supply of services to be exempted from GST by virtue of section 11 of the CGST Act, by way of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017; the Applicant is of the view that the services provided by them are exempted vide Entry 69 of the exemption notification. An extract of the said entry has been reproduced below: SI.No. Chapter, section or Heading, Group or Service Code (Tariff) Description of Service Rate (per cent) Condition (1) (2) (3) (4) (5) 69 Heading 9992 or Heading 9983 or Heading 9991 Any service provided by, (a) The National 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 tr....
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....the terms of Scheme The Applicant states that based on the above it is submitted that since the training programs that will be executed by the Applicant are in relation to the Market led Fee-based Services Scheme implemented by NSDC, Condition 2 also stands satisfied. Also, it is to be noted that the Applicant is engaged in providing education services which falls under HSN code 9992 - Education Services 6.4 The Applicant states that the exemption notification mentions availability of GST exemption inter alia on services provided by approved training partner of NSDC, which are in relation to any scheme implemented by the NSDC. Unlike entry no. 66 of the exemption notification, entry 69 does not specify class of recipients to whom services should be provided to avail the exemption. In the absence of any such restriction, as long as the services provided by the approved training partner are in relation to the scheme implemented by NSDC, GST exemption would be available. 6.5 The Applicant states that the term 'in relation to' signifies very wide connotation and therefore services provided by approved training partner under the scheme will qualify for exemption regardless of t....
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....s in IT/ITes sector such as Software Product Engineering, Supercharger CSE and AI and Future Technologies, as detailed at para 5.7, being an approved training partner of the National Skill Development Corporation (NSDC); that the said training programmes are under the 'Market led Fee-based Services Scheme, implemented by NSDC; they are planning to provide the aforesaid training programs to the students at Kalvium campus as well as at Partner Universities' campus. 11. The Applicant contends that the services provided by them at Kalvium campus, are exempted in terms of entry No. 69 Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 since they are providing training being an approved training partner of NSDC in relation to 'Market led Fee-based Services' Scheme, implemented by NSDC. In this regard, We invite reference to the Entry No. 69 Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is amended vide Notification No. 08/2024-Central Tax (Rate) dated 08.10.2024 which is as under: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 69 Heading 9983 or Heading 9991 or Head....
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...., while offering their comments, opined that the partner universities are neither acting as pure agents nor students authorized the partner universities to pay the fee to the applicant on behalf of them, in terms of Rule 33 of CGST Rules 2017. If the University is collecting the consideration without satisfying the condition of pure agent, then the transaction will be between the university and students and the applicant won't be eligible for exemption. The applicant contends in this regard that they have entered into an agreement with the partner universities for provision of certain facilities so that they impart skills through the training conducted at the place of partner universities and the ultimate beneficiaries are the students i.e. recipients of the service provided by the applicant. Further they also contend that the impugned service is eligible for exemption as long as the service is provided by the approved training partner of the NSDC, in relation to the National Skill Development Programme or any other scheme implemented by the National Skill Development Corporation. They further contended that as per entry No. 69(f)(i) of Notification No. 12/2017-Central Tax (R....