TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 282
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....Skill India scheme for the period 2025-2028. NSDC (a public-private partnership under MSDE) has accredited the applicant to conduct the "Digital Marketing Manager" course (Qualification Pack Code: MES/Q0706). This course is an NSQF-aligned vocational skill program. 3. The applicant enrols students into its digital marketing courses directly. As per the partnership terms with NSDC, all student enrolments and batches are registered on NSDC's Skill India Portal (SIP) for monitoring. NSDC tracks the students' training progress and outcomes (such as assessments and certifications) via this portal. NSDC and/or the relevant Sector Skill Council issue joint certifications to the successful trainees upon course completion, thereby ensuring the training is recognized under the national skill development programs. The training fees are collected by the applicant from the students. There is no direct government funding for these particular courses; instead, it operates on a market-led, fee-based model under NSDC oversight. The applicant's revenue from the students' course fees constitutes the consideration for the training services it provides. NSDC does not pay the applicant for these serv....
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....erhaps not formally accredited through an NCVET-approved Awarding Body suddenly found their services excluded from the exemption as of 10th Oct 2024. (c) In other words, during 10.10.2024 to 15.01.2025, strictly read, training partners approved by NSDC (but lacking NCVET accreditation routing) would have been required to charge GST on their services due to the withdrawal of the earlier clause (d). This period of change led to significant uncertainty in the skill training industry. (d) On the recommendation of the GST Council in its 55th Meeting (Dec 2024), the Government moved swiftly to restore the lost exemption for NSDC partners. Notification No. 06/2025-Central Tax (Rate) dated 16th Jan 2025 amended the entry yet again and expressly reinstated "NSDC-approved Training Partners" as eligible service providers for the exemption, independent of the NCVET-accreditation route. The law as of 16th Jan 2025 once again clearly covers the applicant's services under the GST exemption, just as it did prior to Oct 2024. (e) To address the confusion and any potential compliance issues arising from the interim change, the CBIC issued Circular No. 245/02/2025-GST dated....
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....ET). In the skill ecosystem, Sector Skill Councils function as Awarding Bodies under NCVET, and NSDC training partners typically align with Sector Skill Councils for curriculum and certification. For instance, if the digital marketing course QP is approved by the relevant Sector Skill Council (e.g., Media & Entertainment SSC or IT-ITeS SSC), the applicant could be seen as a training body operating under that awarding body's accreditation. Thus, even under the 08/2024 language, a good faith argument exists that the applicant's services remained within scope via clause (e)/(iii) (NSQF qualification) of Entry 69. Regardless, this ambiguity has been resolved by the explicit re-insertion of NSDC training partners into the exemption by Notification 06/2025. (j) The Circular 245/02/2025 removes any doubt by effectively absolving NSDC partners from GST liability for that interim period. Therefore, even if the applicant did not charge GST in that window (which it did not, based on the consistent understanding of exemption), the Government has regularized the situation so that no back-tax or interest would apply. The Applicant's position is thus secure for past, present, and future,....
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.... to reproduce, the said Entry of the Notification, before delving into the issue. SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 69 Heading 9992 or Heading 9983 or Heading 9991 Any services provided by, (a) the National Skill Development Corporation 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. Nil Nil [Emphasis supplied] 11. As per the above Entry, the services falling under Heading 9991 or 9992 or 9993 provided by the ....
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....onal Skill Development Corporation in relation to the National Skill Development Programme implemented by the National Skill Development Corporation are exempt. As mentioned earlier, the applicant is a training partner approved by the NSDC and has been accredited by the NSDC to conduct the 'Digital Marketing Manager' Course. Further, these services fall under SAC 999293. Therefore, the said service provided by the applicant would be covered under Entry 69 of Notification No. 12/2017 dated 28th June 2017 and thus exempt from payment of GST. The Karnataka Advance Ruling Authority in Re: Interviewbit Software Services Pvt. Ltd, [2023 (76) G.S.T.L. 238 (A.A.R. - GST - Kar.)] has ruled that services provided under the 'Market led fee-based scheme' of the NSDC, executed by the applicant by becoming an 'Approved Training Partner' of NSDC is exempt under Entry 69 of Notification No. 12/2017 dated 28th June 2017. A similar ruling has also been given by the Maharashtra Advance Ruling Authority in Re : IMS Proschool Pvt. Ltd [2018 (18) G.S.T.L. 241 (A.A.R. - GST)]. 15. We now come to the next issue, i.e. for the intervening period from 10.10.2024 to 16.01.2025, when due to an amendment in ....
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....ification. For instance, if the digital marketing course QP is approved by the relevant Sector Skill Council (e.g., Media & Entertainment SSC or IT-ITeS SSC), the applicant could be seen as a training body operating under that awarding body's accreditation. We, however, do not subscribe to this view of the applicant. CBIC's Circular No. 245/02/2025-GST dated 28.01.2025 has clarified on the 'Regularizing payment of GST on skilling services provided by Training Partners approved by the National Skill Development Corporation' for the intervening period. The clarification given by the CBIC is reproduced below:- "5. Regularizing payment of GST on skilling services provided by Training Partners approved by the National Skill Development Corporation. 5.1 On the recommendations of the 54th meeting of the GST Council held in New Delhi on 09.09.2024, the entry at Sl. No. 69 of the Notification No. 12/2017-CTR dated 28.06.2017 was amended vide Notification No. 08/2024 dated 08.10.2024, to synchronize it with the new regulatory framework for skill development under NCVET. 5.2 As a result of the aforesaid amendment, the earlier exemption available to the skilling serv....
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....r to 10.10.2024, for the period 10.10.2024 to 15.01.2025 on 'as is where is' basis, based on the recommendation of the GST Council. The Gujarat High Court in the case of J.K. Papad Industries Vs Union of India [(2024) 22 Centax 335 (Guj.)] has interpreted the term 'as is where is basis' as under:- "30. In view of above minutes of the meeting of GST Council and circular dated 1st August, 2023, question arises at to what rate the GST is payable by the petitioners upto 22.07.2023 as both the GST Council as well as the Board were of the opinion to regularise the issue for the past period on 'as is where is' basis meaning thereby whatever situation was prevailing with regard to the status of payment of GST by the petitioners shall continue to prevail upto 22.07.2023 and the petitioners have claimed their product to be exempt from GST, therefore, the petitioners cannot be subjected to levy of GST in order to regularise their returns which have been filed at Nil rate of GST. 31. It appears that the respondents have misinterpreted the words "as is" basis by issuing the impugned notices to levy GST at 18% on applicability of Tariff Item No. 19059030 ignoring the binding de....