No GST on Services for Transformative Upskilling of Working Tech Professionals, under Market Led Fee-based Services Scheme [Read Order]

The Karnataka Authority for Advance Ruling (AAR), observed that no Goods and Service Tax (GST) can be levied on services for transformative upskilling of working tech professionals, under Market led Fee-based Services Scheme.

The applicant, M/s. Interviewbit Software Services Private Limited, is a Private Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/ SGST Act respectively). The applicant is operating the platform ‘Scaler”, an outcome based online transformative upskilling platform which aims to enhance the skills of working tech professionals.

The applicant has sought advance ruling on what is the applicable GST on the services provided by the applicant under the “Market led Fee-based Services Scheme’ and whether the applicant is eligible for exemption under entry 69 of Notification No.12/ 2017-Central Tax (Rate), dated 28.05.2017.

The applicant stated that they have been operating the platform ‘Scaler’ an outcome based online transformative upskilling platform which aims to enhance the skills of working tech professionals and bridge the gap between the Tech Industry and Tech education. They are intending to provide a course in participation with National Skill Development Corporation (`NSDC’), which is a Non-profit Company.

In view of the above Notification, services provided by an approved training partner of NSDC in relation to scheme implemented by NSDC shall be exempted from GST. The applicant is of the view that as the services provided by them in the present case is exempted from GST, the applicable rate of tax is NIL.

The applicant submitted that as per Entry 69 of the Exemption Notification, the following conditions have to be satisfied by a training partner in order to claim exemption. 1. Approval of NSDC to operate as a training partner. 2. Such approval must pertain to a scheme implemented by NSDC. The two conditions have been satisfied by the applicant.

A Two-Member Bench of the Authority comprising Dr. M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes and Kiran Reddy T, Additional Commissioner of Customs & Indirect Taxes observed that “The Applicant has stated that he is an approved training partner of National Skill Development Corporation and has submitted a copy of the certificate from NSDC certifying the same. Thus, the applicant has satisfied the first condition. The Applicant has also stated that they have entered into an agreement with NSDC for executing the “Market led Fee-based Services” scheme which is introduced and implemented by the NSDC. Thus, the applicant has satisfied the second condition also.”

“The applicable GST on the services provided by the applicant under the "Market led Fee-based Services Scheme" is Nil. The applicant is eligible for exemption under entry 69 of Notification No. 12/2017-Centra1 Tax (Rate), dated 28.06.2017” the Authority concluded.

To Read the full text of the Order CLICK HERE

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