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No GST on Services provided under Vocational Training Courses recognised by NCVT: AAR [Read Order]

By Taxscan Team -

The Andhra Pradesh Authority of Advance Ruling (AAR) ruled that no GST is applicable to the services provided under vocational training courses recognized by National Council for Vocational Training (NCVT).

The applicant, Leprosy Mission was founded in 1874 as ‘the Missions to Lepers’ by an Irishman named Wellesley Cosby Bailey in Ambala, India. Subsequently, in 1973 the Leprosy Mission Trust India was registered as a society under the Societies Registration Act of 1860. It is the largest leprosy focussed non-governmental organization in India with its headquarters at Delhi Training. It has also a diverse set of programs i.e., Healthcare, Sustainable Livelihood, Community Empowerment, Advocacy, and research and training.

The applicant has sought advance ruling on the issue whether services provided under vocational training courses recognized by National Council for Vocational Training (NCVT) is exempted either under Entry No.64 of exemptions list of Goods and Services Tax Act, 2017 or under Educational Institution defined under Notification 12/Central Tax (Rate).

The Authority consisting of members D. Ramesh and M. Shreekanth ruled that no GST is applicable to the services provided under vocational training courses recognized by National Council for Vocational Training (NCVT).

“The vocational training provided by the applicant in respect of which their query raised is mentioned in their submissions in the form of a table which mentioned both Formal Trades and Informal Trades. Formal Trades in relation to Diesel Mechanic, Computer Operator and Programming Assistance (COPA), Welder, Dress Making and Motor Mechanic are affiliated/recognized by the National Council for Vocational Training (NCVT), Ministry of HRD. These courses come under the purview of the MSD&E (Ministry of Skill Development and Entrepreneurship). They also offer Informal Trade courses both Institutional and Community Based. These vocational courses are attracting the Nil rate of tax under GST Act, 2017 under the Entry 66 of Notification No. 12/2017 CT Rate dated June 28, 2017,” the AAR observed.

To Read the full text of the Order CLICK HERE