The Haryana Authority of Advance Ruling (AAR) held that no GST is payable on imparting Training to students sponsored by central or state Government.
The applicant, M/s Sachdeva College Ltd. is engaged in the field of providing “Education” which is not defined under the GGST Act, but as per Apex court decision in Loka Shiksha Trust vs. CIT, Education held that it is a process of training and developing knowledge, skill, and character of students by normal schooling.
The applicant sought the advance ruling in respect of determining the liability to pay GST / IGST tax on training to students at the behest of Directorate of the welfare of Scheduled caste and Backward Classes Department, Haryana by the applicant under a training program for which total expenditure is borne by state Government of Haryana which implements three types of scheme i.e. State Scheme, Sharing basis, centrally sponsored Scheme especially in view of Entry No. 72 of the Haryana Govt. Excise & Taxation Department Notification dated June 30, 2017, and whether this Entry grants exemption of GST on the Training of Students by petitioner.
The applicant has further asked the AAR that whether the Applicant is liable to be registered under the State of Haryana under IGST/CGST in view of the facts and circumstances of the present case.
The coram of Rachna Singh and Vidhya Sagar observed that that the Department of the welfare of sc and BC, Haryana implements three types of schemes i.e. state schemes, sharing basis centrally sponsored scheme and 100% centrally sponsored schemes. Regarding the schemes in which scholarship or monetary relief or grant is given directly to the beneficiary either in the Aadhaar Enabled account or in the bank account, no GST is to be paid.
The AAR ruled that t any person engaged exclusively in the business of supplying goods and services or both that are not liable to tax or fully exempt from tax under this Act or under the Integrated Goods and Service Tax Act, so the applicant is not liable for registration till the supplies goods and services or both that are not liable to tax or fully exempt from tax under the GST Acts.Subscribe Taxscan AdFree to view the Judgment