The Central Board of Indirect Taxes and Customs ( CBIC ), through Notification No. 08/2024-Central Tax (Rate) dated October 08, 2024, has notified the Goods and Services Tax ( GST ) exemption to certain services related to skill development.
The notification amends the existing GST rate notification by replacing the entries under serial number 69 to exempt services provided by organisations such as the National Skill Development Corporation (NSDC) and other recognized bodies involved in various skill development programs.
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In addition to NSDC, the GST exemption extends to services provided by the National Council for Vocational Education and Training (NCVET), as well as recognized awarding bodies, assessment agencies, and accredited training bodies under NCVET.
These entities offer services connected to the National Skill Development Programme, the National Skill Certification and Monetary Reward Scheme, and other qualifications aligned with the National Skill Qualification Framework.
The amendment also updates the terminology in related provisions by replacing the term “National Council for Vocational Training” with “National Council for Vocational Education and Training.”
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The changes are made under the powers conferred by various sections of the Central Goods and Services Tax (CGST) Act, 2017, including sub-sections (3) and (4) of section 9, section 11, and section 15, on the recommendation of the GST Council.
This notification, which comes into effect from October 10, 2024, is expected to have a widespread impact by reducing the cost burden on organisations and individuals seeking vocational training.
Similar exemptions have also been made under the Integrated Goods and Services Tax Act, 2017 (IGST Act) and the Union Territory Goods and Services Tax Act, 2017 (UTGST Act).
“In the said notification, in the Table, –
for serial number 69 and the entries relating thereto in columns (2), (3), (4) and (5), the following shall be substituted, namely: –
| (1) | (2) | (3) | (4) | (5) |
| “69 | Heading 9983 or Heading 9991 or Heading 9992 | Any services provided by –(a) the National Skill Development Corporation set up by the Government of India;(b) the National Council for Vocational Education and Training;(c) an Awarding Body recognized by the National Council for Vocational Education and Training;(d) an Assessment Agency recognized by the National Council for Vocational Education and Training;(e) a Training Body accredited with an Awarding Body that is recognized by the National Council for Vocational Education and Training,in relation to-(i) the National Skill Development Programme or any other scheme 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 National Skill Qualification Framework aligned qualification or skill in respect of which the National Council for Vocational Education and Training has approved a qualification package. | Nil | Nil” |
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(E) against serial number 71, in column (3), for the words “National Council for Vocational Training”, the words “National Council for Vocational Education and Training” shall be substituted.
(ii) in paragraph 2 of the said notification,
(A) in item (h), –
(a) in sub-item (i), for the words “National Council for Vocational Training”, the words “National Council for Vocational Education and Training” shall be substituted.
(b) in sub-item (ii), for the words “National Council for Vocational Training”, the words “National Council for Vocational Education and Training” shall be substituted.”
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