Market Led Fee based Services Scheme not exigible to GST: AAR [Read Order]

The Karnataka Authority for Advance Ruling (AAR) has ruled that training services delivered under the Market Led Fee-based Services Scheme of the National Skill Development Corporation (NSDC) are not exigible to Goods and Services Tax (GST).

Sisinty Private Limited operates as an online transformative learning company focused on enhancing the skills of working technology professionals. To expand its reach, the company entered into a partnership with NSDC as an approved training partner under the Market Led Fee-based Services Scheme. This initiative enables NSDC to collaborate with private training providers for industry-relevant courses, with certification issued jointly and enrolments monitored through the Skill India Portal.

The applicant approached the AAR seeking clarity on two questions. First, it asked what rate of GST, if any, would apply to the services offered under the Market Led Fee-based Services Scheme. Second, it requested confirmation on whether such services qualified for exemption under Entry 69 of Notification No. 12/2017-Central Tax (Rate), issued on 28 June 2017. The company argued that, as an NSDC-approved training partner delivering courses under an NSDC scheme, its services were exempt.

Your Ultimate Guide to India’s Latest Income Tax Laws, Click Here

In its submissions, Sisinty pointed to earlier rulings in similar matters, including those involving Nxtwave Disruptive Technologies Private Limited and Interviewbit Software Services Private Limited, where tax exemption was upheld for NSDC-approved training partners. The applicant stressed that the exemption notification clearly covers training partners providing services under schemes implemented by NSDC.

The AAR agreed with the applicant’s position. It noted that Entry 69 of Notification 12/2017 exempts services provided by NSDC, Sector Skill Councils, assessment agencies, and NSDC-approved training partners in relation to NSDC programmes or schemes.

On examination of the documents placed on record, the authority found that Sisinty Private Limited was duly recognised as a training partner and that the Market Led Fee-based Services Scheme was indeed an NSDC-implemented programme. Both statutory conditions for exemption--approval by NSDC and service delivery under an NSDC scheme were therefore satisfied.

As a result, the AAR Bench of the Bench comprising Additional Commissioners Prathap Kumar S (State) and Kalyanam Rajesh Rama Rao (Central) held that no GST is payable on the services provided by Sisinty Private Limited under the Market Led Fee-based Services Scheme.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates