CBIC Clarifies Regularizing Payment of GST on Skilling Services provided by Training Partners approved by the National Skill Development Corporation [Read Circular]

The regularization of GST payments on skilling services rendered by Training Partners authorized by the National Skill Development Corporation has been clarified by the Central Board of Indirect Taxes & Customs ( CBIC ) in Circular No. 245/02/2025-GST.

In accordance with the recommendations of the 54th meeting of the GST Council, which was held in New Delhi on September 9, 2024, the entry at Sl. No. 69 of the Notification No. 12/2017-CTR dated 28.06.2017 was changed via Notification No. 08/2024 dated 08.10.2024 to bring it into compliance with the new NCVET regulatory framework for skill development.

The National Skill Development Corporation-approved skilling services offered by Training Partners were no longer eligible for the previous exemption. The skilling services offered by Training Bodies accredited with an Awarding Body recognized by the NCVET were the only ones covered by the modified exemption.

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The Ministry of Skill Development and Entrepreneurship, Government of India, later informed us that the removal of the tax exemption for Training Partners approved by NSDC would have a significant negative impact on the skilling ecosystem because NSDC is the implementing agency for the government's skilling schemes and other skill development programs.

The GST Council has therefore suggested, at its 55th meeting, that the previous exemption to skilling services offered by Training Partners authorized by the National Skill Development Corporation be reinstated. With effect from January 16, 2025, the aforementioned exemption has been restored by amending Notification No. 12/2017-CT(Rate) issued June 28, 2017, through Notification No. 06/2025-CT(Rate) dated January 16, 2025.

Furthermore, for the period 10.10.2024 to 15.01.2025, the GST Council has suggested regularizing the payment of GST on services rendered by National Skill Development Corporation-approved Training Partners that were exempt before 10.10.2024 on a "as is where is" basis.

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As recommended by the GST Council, the payment of GST on services provided by Training Partners approved by the National Skill Development Corporation, which were exempt prior to 10.10.2024, is regularized for the period 10.10.2024 to 15.01.2025, on ‘as is where is’ basis.

To Read the full text of the Circular CLICK HERE
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