TaxTMI 
TaxTMI 
2025 (11) TMI 1631
X X X X Extracts X X X X
X X X X Extracts X X X X
....les and the Notifications issued there under. 3. The details of the questions on which advance ruling is sought are given above and are not being reproduced here. 4. The facts of the issue: The brief facts of the matter, as submitted by the applicant, are as follows. The Kerala Development and Innovation Strategic Council (hereinafter referred to as 'K-DISC') was constituted by the Government of 'Kerala as an apex advisory body under the Planning and Economic Affairs (Development and Innovation) Department, with the mandate to promote innovation-driven development strategies, coordinate skill development initiatives, and implement strategic programs across the State. K-DISC was originally established in the year 2013 and was subsequently restructured and registered as a society with effect from May 2021 under the Planning and Economic Affairs (Development and Innovation) Department, in pursuance to G.O.(Ms) No. 8/2021/P&EA dated 24.02.2021 issued by the Government of Kerala. The applicant, M/s. Information and Communication Technology Academy of Kerala (ICTAK), provides services to K-DISC under various Memoranda of Understanding (MoUs), which inter alia include....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ster of Kerala, and represented by other Ministers, Secretaries and other persons nominated by the Government, and all key policy decisions, operational matters, and strategic directions are taken on behalf of and under the directions of the Government of Kerala. • Functions: It performs core State functions relating to education, skill development, innovation, and employability enablement functions within the domain of the State Government. • Official Statement: K-DISC has formally stated that in May 2021 they are officially registered under as a society under the planning and Economic affairs (Development and Innovation) Department. This Society is integrated to department workings in the Government of Kerala and it is stated by K-DISC they are exempted from GST. On verification of the website of K-DISC, it is seen that they are å society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Act, 1955. 5.4. In light of the above, the applicant contended that the services rendered to K-DISC, being provided entirely under Government funded schemes, fall squarely within the scope of exemption under Entry 72 of Notific....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dated 28 June 2017.' It is noted that a ruling on the status of K-DISC as a Government Department does not fall within the ambit of Section 97 of the CGST Act, 2017. However, the substantive questions raised by the applicant pertain to the applicability of notifications and the admissibility of input tax credit, which are squarely covered under Section 97(2)(b) and 97(2)(d) of the Act. Accordingly, the application is admitted for consideration on merits. 8.2. The key questions raised by applicant are i. Eligibility of exemption under Entry 72 of Notification No. 12/2017-Central Tax (Rate) on the services provided by applicant to K-DISC ii. Admissibility of Input Tax Credit (ITC) in relation to such services. 8.3. Entry 72 of the Notification No. 12/2017-Central Tax (Rate) as amended provides exemption for "Services provided to the Central Government, State Government, Union territory administration under any training programme for which 75% or more of the total expenditure is borne by the Central Government, State Government, Union territory administration". The essential conditions for claiming the exemption under this entry are: (i) the servi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment Entity or a Governmental Authority. From the data available on the official website of K-DISC and the Government Order submitted by the applicant, it is evident that K-DISC does not constitute a Government or Government Department. The definition of "Government" under Section 2(53) of the CGST Act, 2017, read with Sections 3(8). and 3(60) of the General Clauses Act, 1897, reinforces that the term "Government" refers exclusively to the sovereign executive authority namely, the President in the case of the Central Government and the Governor in the case of the State Government. A society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Act, 1955, even if wholly funded or controlled by the Government, does not fall within this definition. The Kerala Development and Innovation Strategic Council (K-DISC), though functioning. under the administrative control of the State, is a distinct legal entity and cannot be regarded as the "State Government" or a "Government Department" for the purposes of the CGST Act or Notification No. 12/2017-Central Tax (Rate). Accordingly, it cannot claim exemption under Entry 72, which is restricted to services prov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stricts the term local authority to self-governing bodies created under constitutional or municipal statutes, which possess an elected composition, territorial jurisdiction, and statutory power to manage a local fund for public purposes such as sanitation, roads, water supply, or local taxation. The Kerala Development and Innovation Strategic Council (K-DISC), being a society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Act, 1955, does not possess any of these attributes. It neither has an elected body nor territorial jurisdiction, nor is it entrusted with the control or management of any municipal or local fund. K-DISC is a state-level coordinating agency for innovation and skill development, functioning under administrative control of the State Government, and not a self-governing local body. Hence, it does not qualify as a local authority for the purposes of the CGST Act and is not eligible for the exemption reserved for services provided to local authorities under Entries 3 and 3A of Notification No. 12/2017-Central Tax(Rate). 8.6.4 Subsequently, Notification No. 13/2023-Central Tax (Rate) dated 26 October 2023 inserted a new Ent....
X X X X Extracts X X X X
X X X X Extracts X X X X
....licant, namely skill development, capacity building and employability enhancement training, do not fall within any of these enumerated categories. Therefore, even though K-DISC may be regarded as a Governmental Authority for limited purposes, the nature of the services in question lies outside the ambit of Entry 3B. Consequently, no exemption can be availed under Entry 3B for such training or educational programmes. 8.9 In light of the above legislative evolution and interpretation: • The exemption under Entry 72 of Notification 12/2017-CT(R) rightly stands rejected, as K-DISC is not the State Government but a society. • The exemption under Entries 3 and 3A cannot be extended to K-DISC for supplies made on or after 01 January 2022, since Governmental Authorities/Entities were expressly excluded from these entries by Notification 16/2021-Central Tax(Rate). • The later-introduced Entry 3B (Notification 13/2023-Central Tax(Rate)) does not cover the applicant's services, which relate to skill development and training rather than the enumerated civic utilities. Accordingly, the services rendered by the applicant to K-DISC are not el....