The Tamil Nadu Authority of Advance Ruling (AAR) ruled that Tamil Nadu Skill Development Corporation is liable to Register under GST.
The applicant, Tamil Nadu Skill Development Corporation was registered as a non-profit under Section 8 Company under Companies act in the year 2013 by the Government of Tamil Nadu with an objective to provide Skill Training Programme for meeting the growing industrial demand for skilled workers.
They receive funds from the Government as grants for conducting various skill Training programmes implemented through registered Training Providers empanelled with Tamil Nadu Skill Development Corporation. The Grants received has been disbursed for training providers and transportation cost to the Trainees attending the training. Hence, the Tamil Nadu Skill Development Corporation is a non-Profit Section 8 company and not doing any profit mobilizing activities. They submitted that the TNSDC may be exempted from paying the GST.
The applicant has stated that the National Skill Development Corporation has been registered under the Act similarly the State Government has formed this corporation for giving training to unemployed youth. Hence have stated that they be exempted vide Sl. No. 69(SAC 9992 or 9983) and Sl.No. 70 (SAC 9985). They had furnished the Certificate of Incorporation, G.O.(Ms.) No. 150 and copy of the Memorandum of Association and Articles of Association approved by the Government of Tamilnadu.
The applicant has sought advance ruling on the issue whether the applicant is required to be registered under this Act.
The coram of Thiru Kurinji Selvaan and Senthilvelavan B. ruled that Tamil Nadu Skill Development Corporation is not exempted vide entry Sl.No. 69 and Sl.No.70 of Notification No. 12/2017-C.T.(Rate) dated June 28, 2017 and therefore, they are required to be registered under the CGST/TNGST Act 2017.
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