2018 (10) TMI 681 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (18) G. S. T. L. 241 (A. A. R. – GST) – Classification of education services rendered by appellant – Appellant is approved by National Skill Development Corporation – National Skill Development Programme – whether merit classification under HSN 9992 or otherwise? – exemption under N/N. 12/2017 Central tax (Rate) dated 28th June 2017.
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Whether educational courses offered by the Applicant which have been approved by National Skill Development Corporation (NSDC) would be construed as in relation to National Skill Development Programme implemented by NSDC? – whether they are eligible for exemption from GST as per Serial No. 69 of Notification No. 12/2017 Central tax (Rate) dated 28th June 2017 and if so, in respect of which services being provided by them would they be eligible for exemption under Sr.No. 69 of the above said Notification?
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The Applicant offers certain educational courses for which qualificatio
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ate), dated the 28th June 2017 would be available to the Applicant?
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If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 17/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporates and business institutions?
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Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centres located across the country, will be considered as offered by the Applicant?
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If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No. 17/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?
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Held that:- NSDC was set up as a part of National Skill Development Mission to fulfil the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skills. Its ma
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exemption as given at Sr. NO. 69 of Notification 12/2017-CT (Rate) as claimed to be applicable by the applicant in the present case is in respect of any services provided by a training partner approved by the NSDC or the Sector Skill Council in relation to the National Skill Development Program implemented by the NSDC or any other scheme implemented by the NSDC.
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The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenge of skilling at scale with speed and standard (quality). It will aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link the skilling with demand centres. In addition to laying down the objectives and expected outcomes, the effort will also be to identify the various institutional frameworks which can act as the vehicle to reach the expected outcomes. The national policy will also provide clarity and coherence on how skil
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e ‘Skill Development Programme’ it becomes National Skill development Programme and it limits its scope and restricts it only to the activities/ efforts that are undertaken through Government funding, Government Schemes and specifically designed Government Programmes – National Skill Development Programme would consist of the schemes, actions and deeds that are actually done or are mandated to be done by various ministries, Government departments or their attached offices, Directorates or other institutions as per their instructions and for which expenses in that regard are to be incurred by the Central or State Governments through budgetary provisions.
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The intent of the Notification No. 12/2017-CT provides that exemption would be available only in respect of “Any services provided by a Training partner approved by National Skill Development Corporation in relation to the National Skill Development Programme implemented by the NSDC.
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If the intent of the Legislature had be
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to National Skill Development Programme implemented by NSDC.
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The Educational courses for which qualification standards / framework i.e. QP/ NOS has not been defined by NSDC will not be treated as in relation to National Skill Development Programme implemented by NSDC.
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The modified version of NSDC approved educational courses will not be treated as in relation to National Skill Development Programme implemented by NSDC.
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The benefit of GST exemption as per Notification No. 14/2017- Central Tax (Rate), dated the 28th June 2017 would not be available to the Applicant.
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The Benefit of GST exemption as per Notification No. 17/2017-Central Tax (Rate), dated the 28th June 2017 would not be available if such educational courses are offered to corporates and business institutions.
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Other questions not answered. – GST-ARA-37/2017-18/B-44 Dated:- 5-6-2018 – SHRI B.V. BORHADE AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services T
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l courses and are eventually approved by NSDC, whether such courses will be treated as in relation to National Skill Development Programme implemented by NSDC? Q.3.- In certain situations, NSDC approved educational courses are subsequently, upgraded by the Applicant within pre-defined QP/ NOS framework, by way of adding more topics/ content/modules. However, such modified version of NSDC approved educational courses have not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented by NSDC? Q.4.- If the answer to Q.1, Q.2 and Q.3 are Yes, then whether the benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant? Q.5.- If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corpor
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T ACT . 02. FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus – STATEMENT OF RELEVANT FACTS HAVING A BEARING ON THE OUESTION(S) ON WHICH ADVANCE RULING IS REOUIRED. II.1 IMS Proschool Pvt Ltd, the Applicant is a company incorporated under the Companies Act, 1956 having its registered office at Mumbai, Maharashtra. II.2 The Applicant is an initiative of IMS Learning Resources and offers educational training and skilling courses through classroom training and virtual coaching, in many areas such as data science, digital marketing, IFRS, ACCA, Fitter – Mechanical Assembly, Basic Electrical, Sales Person Retail etc. across many cities in India including Mumbai, Pune, Chennai, Bangalore, Delhi, Hyderabad, Gurgaon, Kochi and several districts of Gujarat. II.3 The Applicant is engaged, in the business of skilling the youth with the objective of helping them find decent job, make them employable and to help them earn better living. This inc
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uals, corporates. II.6 Applicant is an approved training partner of NSDC and till date, 12 educational courses offered by it have been approved by NSDC. Further, 2 educational courses for which QP/NOS have not been defined by NSDC yet, have been conditionally approved by NSDC. All such courses offered by the Applicant are directed for skill development and to increase employability in India. II.7 The Applicant has tie-ups with various educational institutes / Govt. organizations, including NSDC, National Stock Exchange Academy, Symbiosis International University, Indira Institute of Management, Lovely Professional University, Chartered Financial Institute, Chartered Institute of Management Accountant. II.8 Applicant has obtained registration under Goods and Service Tax (hereinafter referred to as GST ) regime in states of Maharashtra, Haryana, New Delhi, Karnataka, Kerala, Tamil Nadu, Telangana and Gujarat. STATEMENT CONTAINING APPLICANT S INTERPRETATION OF LAW AND OR FACTS AS THE CASE
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onal technical, vocational educational courses such as NCFM Financial Modelling, Financial Analysis, Management Accounting, Financial Planning, Business Analytics and various other post graduate programs in areas of finance, business analytics and marketing as well as technical programs such as Fitter, Basic Electrical and Sales Person Retail. Under GST law, the said education services rendered by the Applicant merit classification under HSN 9992. IV.3. The Applicant is also, an approved training partner of NSDC. The certificate in relation thereto, has been enclosed herewith as Exhibit 2. IV.4. The following educational courses (hereinafter referred to as approved educational courses ) till date, have been already approved by NSDC: (1) Financial modelling (2) Financial analyst (3) Management accounting (4) Strategic management accounting (5) Business accounting (6) Financial planning (7) Business analytics (8) Sales person retail (9) Basic electrical training (10 CGSC Fitter Mechanica
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any other Scheme implemented by the National Skill Development Corporation transaction. Copy of the Notification has been enclosed herewith as Exhibit 4. IV.5. On simple reading of the Notification, it is apparent that GST exemption is available to an approved training partner of NSDC, only if education services rendered by such partner, is in relation to: (i) the National Skill Development Programme implemented by NSDC; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation IV.6. The Applicant would like to submit that the Scheme mentioned above under Sr. No. (ii) and (iii), has been specifically implemented by the respective Govt. department /organisation. For example, NSDC has implemented various Schemes such as PMKK, PMKVY, Udaan, International Skill Training, etc., which would get covered under Sr. No. (iii) mentioned above. Further, variou
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duce unemployment in India and to fulfil the growing need of skilled manpower across various industries and sectors. Role of NSDC is to act as a catalyst for creation of quality skills training institutions across the country and also, to support private sector initiatives for skill development. IV.9. NSDC partners with various training institutions to achieve its mission and objectives of elevating skilled manpower. In this regard, NSDC develops partnerships with multiple stakeholders and build on current efforts of such stakeholders, rather than undertaking initiatives directly and duplicating efforts. IV.10. It is evident from the above that, NSDC to achieve its objectives, does not undertake / implement any schemes, programmes on its own, rather, it has partnered with various training institutions imparting training courses /programmes related to skill development. IV-11. Basis the information available on NSDC portal (hereinafter referred to as SDMS ), we understand that the educa
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2012, notified by Ministry of Human Resource Development is enclosed herewith as Exhibit-5 . IV.12. On SDMS (i.e. NSDC portal related to skill development educational courses), QP / NOS for each type of job role within identified skill sector has been mentioned. Since there are innumerable job roles and defining QP / NOS is a continuing task hence, QP/ NOS for many job roles have already been defined by NSDC and for many other job roles, they are yet to outline QP / NOS. IV.13. NSDC training partners are required to align their education courses with defined QP / NOS within identified skill sector. Accordingly, at time of seeking approval for educational courses, each NSDC training partner is required to give an affidavit / declaration to NSDC, giving reference of pre-defined QP / NOS to demonstrate alignment of such course with that is contained in such educational courses. IV.14. Having said that, the Applicant would like to submit that keeping in mind the objective of NSDC of focus
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Development and Entrepreneurship ( MSDE ). IV.17. In this connection, for each month, quarter, financial year, in relation to each of the approved educational courses, the Applicant is required to report and upload the following details, on the SDMS (NSDC portal): Applicant s progress towards yearly skill achievement targets; Annual and monthly performance of the Applicant such as number of students enrolled, trained, placed, up- skilled; Quarterly and yearly training and placements achievements of the Applicant; Details of each and every student who was enrolled with the Applicant such as personal details, date of enrolment, date of passing out, batch start and end date, training status, etc.; Status of active and inactive educational centres of the Applicant; Details of corporate training programs; Details of any other skilling schemes The documentary evidence of sharing the aforesaid information by the Applicant with NSDC has been enclosed herewith as Exhibit-8 . IV.18. Further, NS
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information of actual training and placements, comparison of yearly targets with the skill development achievements of approved training partners, are being undertaken by NSDC because it has not announced any programme which would be implemented by NSDC itself, to achieve its objectives of enhancing skilled manpower and reducing unemployment in India. Since, NSDC partners with training institutions and does not undertake any training programmes itself, therefore, achievement of approved training partners would be counted as accomplishment of the said objectives of NSDC. Accordingly, all the approved educational courses conducted by the Applicant should be construed as in relation to National Skill Development Programme implemented by NSDC. I. Question Of law: (2) The Applicant offers certain educational courses for which qualification standards / framework i.e. QP/ NOS has not been defined by NSDC and will be approved by NSDC as and when the relevant QP/ NOS would be defined by NSDC. I
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assurance framework that outlines different type of skill standards, a person should possess for a given job role and also, outlines learning outcomes to ensure particular target level of skill has been achieved in a training program. In this regard, NSDC has defined NOS / QP for many job roles. Such QP / NOS should be aligned to educational courses imparted by NSDC training partners. NSDC has defined QP / NOS for many job roles and they are in in process to outline QP / NOS for other job roles. NSDC s educational course approval process V.3. In connection to job role / educational course for which NOS / QPs has been already defined by NSDC, for the purpose of obtaining approval from NSDC, the approved training partner of NSDC is required to align their educational courses as per the listed QPs / NOS. V.4. At present, the step-by-step NSDC course approval process is explained by way of below flow chart: Identify QP on NSDC website for which course needs to be aligned Prepare affidavit
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from NSDC for such courses. V.6. Therefore, both such courses have been conditionally approved by NSDC (hereinafter referred to as exceptional approved educational courses ) and the approval status of such courses appear as exception on the SDMS. Copy of the affidavit submitted to NSDC in relation to exceptional approved educational courses and the screenshot of the approval status of such course on SDMS appearing as exception, have been enclosed herewith as Exhibit-9 . V.7. The Applicant would like to submit that such exceptional approved educational courses are aimed to develop the skills of the candidates and help them to find a job or better job role. Further, the Company while reporting its achievement of skill developments targets to NSDC includes details of such courses as well. V.8. Given this, the Applicant is of the opinion that such courses are directed towards the objectives of NSDC of skill development and reducing unemployment in India and accordingly, should be equated a
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ional Skill Development Programme implemented by NSDC VI.2. For the purpose of remaining competitive in this evolving and dynamic world, the Applicant keeps on upgrading, modifying, adding variants to its already approved educational courses, by way of adding more topics/ modules / content to the same. As result of such modification, the basic premise of such modified courses remains constant, existing modules are not deleted from it, only, supplementary modules / programs are added to it and aligned with corresponding pre-defined QP/ NOS, in order to make the same, lucrative to the candidates, educational institutions, corporates, etc. VI.3. The Applicant has obtained approval from NSDC at inception however, subsequent to up- gradation, in connection with such modified versions of already existing approved educational courses, the Applicant is yet to receive approval from NSDC. VI.4. The Applicant would like to submit that the aforesaid modifications to the already approved educationa
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be available to the Applicant? VII.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant relates to the matter as to: If the answer to Q.1, Q.2 and Q.3 are Yes, then, whether the benefit of GST exemption as per notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant GST Notification VII.2. Entry 69 to the Notification No. 12/2017-Central Tax (Rate) dated 28th June provides that: Education services (specified under HSN 9992) provided by: (a) the National Skill Development Corporation set up by the Government of India; (b) a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to- (i) the National Skill Development Programme implemented by the Nationa
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. VII.6. Since, the approved educational courses including modified versions and conditional approved educational courses offered, by the Applicant who is an approved training partner of NSDC, are in relation to National Skill Development Programme implemented by NSDC therefore, the Applicant would like to submit that it is eligible for GST exemption in connection with such educational courses, in terms of the Notification. Question of law: (5) If answer to Q.4 is Yes, whether benefit of GST exemption as per notification No. 14/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporates and business institutions? VIII.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant relates to the matter as to: If answer to Q.4 is Yes, whether benefit of GST exemption as per notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be still available if such educational c
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to whom services should be provided so that the benefit of the Notification would be available. The Notification does not specify that the services should be rendered by the approved training partner of NSDC, to individuals or to corporates or to colleges or to Govt. organisations, for availing GST exemption. VIII.5. Accordingly, in absence of any such restriction it is evident that as long as the educational courses offered by the approved training partner are in relation to the National Skill Development Programme implemented by NSDC, GST exemption would be available, irrespective of constitution of the recipient. VIII.6. The Applicant would like to submit that the educational courses which have been approved by NSDC and are reported to NSDC towards achievements of skill development targets of the Applicant and are in relation to the National Skill Development Programme implemented by NSDC, regardless of being offered to business corporates or colleges or individuals and GST exempti
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uch business partners has been appointed by the Applicant with the intention of increasing business and to manage its centers effectively and efficiently. IX.3. The business partners would provide infrastructural and other support services to the Applicant, for agreed fees. In this connection, the Applicant has entered into an agreement with business partners namely, Business Partner Agreement, wherein the scope of services rendered by business partners, responsibility and obligations of both namely, the business partners and the Applicant and other terms and conditions have been listed. Sample copy of the Business Partner Agreement and corresponding invoices raised by such business partners upon the Applicant have been enclosed herewith as Exhibit-10 . IX.4. The key features of the Business Agreement are elucidated below: business partner to conduct educational courses and training services for specified courses, under the instructions of the Applicant, in the designated area, for def
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ssist business partner in preparing time table for programme and services to be rendered in connection therewith. The Applicant shall provide students course material application form, brochure, advertisement materials, student s identity card, login credentials to access course material electronically, to the business partner who in turn will give the same to the students. Business partner is required to maintain financial and Other records in the specified format, as required by the Applicant. The premises that will be used by business partner under the said agreement would be acquired by the Applicant, under a lease arrangement. In other words, the centre will be taken on lease basis for which lease agreement is in the name of the Applicant and the lease rentals will be paid by the Applicant. Business partner is required to make available requisite infrastructure such as office, classroom library, furniture, electricity, other amenities in the specified area as approved by the Appli
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business partner on behalf of the Applicant. In case of any issues, problems, issues faced by the students in course of training, the Applicant would be legally obligated to resolve the same. Copy of the following have been enclosed herewith as Exhibit 11 : agreement entered into between faculty and the Applicant, sample copy of invoice issued by such faculty upon the Applicant, lease agreement between landlord and the Applicant, sample copy of rent receipt issued by such landlord upon the Applicant. IX.6. On simple reading of the aforesaid, it is clearly evident that by and large, all the activities related to the centres run by business partners such as managing faculty, marketing, leasing of centres premises, providing educational materials, etc. are the responsibilities of the Applicant. Applicant has partnered with the business partner to share few of its obligations such as to provide educational courses to students using the materials, curriculum provided by the Applicant and u
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.10. Since the educational courses imparted by business partners are on behalf of the Applicant, accordingly, such educational courses should be construed as being offered and conducted by the Applicant itself. IX.11. The Applicant would like to submit that the education courses which are conducted at centres managed and run by the business partner on behalf of the Applicant, are the same courses which have either been approved or conditionally approved by NSDC or the upgraded versions of such courses. Therefore, every year the Applicant has included such courses while reporting achievement of its skill development targets to NSDC and NSDC has not raised any objection to such inclusion. IX.12. Therefore, education courses imparted at centres by business partners on behalf of the Applicant should be construed as in relation to the National Skill Development Programme implemented by the NSDC and GST exemption should be available on the same. V. Question of law: (7) If answer to Q.6 is Ye
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a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to- (i) the National Skill Development Programme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation transaction X.4. Since, the educational courses by the Applicant through business partners, are in relation to National Skill Development Programme implemented by NSDC therefore, the Applicant is eligible for GST exemption in connection with such educational courses, in terms of the Notification. PRAYER IN ADVANCE RULING Given the facts and circumstances, the Applicant prays before the
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deems fit, proper and reasonable, on the facts of the case, may be granted. The Applicant be granted the opportunity of a personal hearing. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- IMS Proschool Pvt Ltd the applicant is a company incorporated under the Companies Act, 1956 having its registered office at Mumbai, Maharashtra. The Applicant is an initiative of IMS Learning Resources and offers educational training and skilling courses through classroom training and virtual coaching, in many areas such as data science. Digital marketing, IFRS, ACCA, Fitter-Mechanical Assembly, Basic Electrical, Sales Person Retail etc. across many cities in India Including Mumbai, Pune, Chennai, Bangalore, Delhi, Hyderabad, Gurgaon, Kochi and several districts of Gujarat. The Applicant is engaged, in the business of skilling the youth with the objective of helping them find decent job, make them employable and to help them earn better living
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rporates. The Applicants is an approved training partner of NSDC and till date, 12 educational courses offered by it have been approved by NSDC. Further, 2 educational courses for which QP/NOS have not been defined by NSDC yet, have been conditionally approved by NSDC. All such courses offered by the Applicant are directed for skill development and to increase employability in India. The Applicant has tie-ups with various educational institutes/Govt. organizations, including NSDC.. National Stock Exchange Academy, Symbiosis International University, Indira Institute of Management, Lovely Professional University, Chartered Financial Institute, Chartered Institute of Management Accountant. The applicant has raised following query:- Qs.No. Questions raised by the applicant Submission as per ACT & RULE 1. Whether educational courses offered by the applicant which have been approved by National Skill Development Corporation would be construed as in relation to National Skill Development
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a Sales Associate, one of the NOS would be to To help customers choose right products QPs – A set of NOSs, aligned to a job role, called Qualification Packs (QPs), would be available for every job role in each industry sector. These drive both the creation of curriculum, and assessments. These job roles would be at various proficiency levels, and aligned to the NSQF. Example would be Qualification Pack of a Sales Associate Sector Skill Councils are responsible for the creation of QPs and NOSs. These Occupational Standards are open for public viewing for a month on http://www.nsdcindia.org/nos. All those who have participated in development and validation of standards as well as the industry are informed by the SSC that the Occupational Standards have been published for comments. All comments/ feedback received during the period will be responded to by respective Sector Skill Council under intimation to NSDC. After one month of public viewing, these standards Will be promulgated as Nati
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No.12/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to co orates and business institutions? No. 6. Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centers located across the country, will be considered as offered by the Applicants? Should be approved by the NSDC not for sub-contract of the applicant. 7. If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No.12/2017-Central Tax (Rate), dated the 28th June 2017 would be available to the applicant? Should be approved by the NSDC not for sub-contract of the applicant. NSDC (BACKGROUND) : Skill India is an initiative of the Government of India which has been launched to empower the youth of the country with skill sets which make them more employable and more productive in their work environment. Our National S
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ng the last one year. The target to train more than a crore fresh entrants into the Indian workforce has been substantially achieved for the first time. 1.04 Crore Indians were trained through Central Government Programs and NSDC associated training partners in the private sector. For the first time in 68 years of India s independence, a Ministry for Skill Development & Entrepreneurship (MSDE) has been formed to focus on enhancing employability of the youth through skill development. The skill ecosystem in India, is seeing some great reforms and policy interventions which is reinvigorating and re-energising the country s workforce today; and is preparing the youth for job and growth opportunities in the international market. The Hon ble Prime Minister s flagship scheme, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) alone, has till date seen close to 20 lakh people get skilled and prepared for a new successful India. Skill India harbours responsibility for ensuring implementation of C
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es that are being undertaken by NSDC under National Skill Development Programme and submit the same. Jurisdictional Officer, Ms. R. S. lyer Sales Tax Officer appeared and made written submissions. The application was admitted and called for final hearing on 24.04.2018, Sh. Santosh Dalvi, Advocate alongwith Ms. Shradha Didwania, Sh. Sanjay Choudhary CEO, Sh. Ajay Nayak, C.A., Sh. Tanveer Bhagat, C.A. and Ms. Aarti Shetty appeared and made oral contentions as per their written submissions which were taken on record, Jurisdictional Officer, Ms. R. S. lyer Sales Tax Officer appeared and stated that they have already made their written submissions. 05. OBSERVATIONS We have perused the records on file and have gone through the facts of the case and oral and written submissions made by the applicant as well as the department. We find that M/s. IMS Proschool Private Limited, the applicant is a company under the Companies Act. The applicant is claiming that they are in the business of skilling
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ional courses offered by the Applicant which have been approved by National Skill Development Corporation (hereinafter referred to as NSDC ) would be construed as in relation to National Skill Development Programme implemented by NSDC? And in continuation of the same their further query is that whether they are eligible for exemption from GST as per Serial No. 69 of Notification No. 12/2017 Central tax (Rate) dated 28th June 2017 and if so, in respect of which services being provided by them would they be eligible for exemption under Sr.No. 69 of the above said Notification. We find that rest of their queries in the present application would rest on their above two main queries. In view of this we would first be required to ascertain if the educational courses that are being offered by the applicant and approved by NSDC can be taken to be in relation to National Skill Development Programme implemented by NSDC. We find that at the time of the preliminary hearing they were orally request
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ervices of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (I) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table. From the details of the relevant Notification we find that the applicant is claiming that they are eligible for exemption as given in Sr. No. 69 of the above said Notification. We find that the specific exemption that the applicant is claiming is as under:- Any services provided by, _ (a) ………………… (b) ………………… (c) ………………… (d) a training partner approved by the National Skill Development Corporation or the Sector Skill
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wever as no such certificate is produced for the F.Y. 2018-19, and therefore for F.Y. 2018-19, it is not clear whether the applicant continues to be a training partner of M/S NSDC for the current Financial Year. Secondly we are required to examine if the applicant who is an approved training partner of M/s. NSDC is providing any services in relation to National Skill Development Program implemented by M/s. NSDC. With regard to the above we are required to ascertain as to what is the National Skill Development Programme implemented by NSDC. We find that M/s. NSDC is a non-profit company set up by the Ministry of Finance which aims to promote skill development by catalysing creation of large, quality and for profit vocational institutions. For this purpose it – 1. provides funding to build scalable and profitable vocational training initiatives 2. to enable support system which focuses on quality assurance, information systems and train the trainer academies either directly or through pa
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nal Skill Development Corporation (NSDC), has taken up multiple initiatives to connect with industries for partnership under the larger Skill India Mission. NSDC has a single-window facilitation system that offers a unique platform for the industries to partner on various such initiatives. NSDC works with diverse set of stakeholders such as Corporates, Foundations, Government and Community based Organisations in structuring high impact collaborative skill development projects. We find that the benefit of exemption as given at Sr. NO. 69 of Notification 12/2017-CT (Rate) as claimed to be applicable by the applicant in the present case is in respect of any services provided by a training partner approved by the NSDC or the Sector Skill Council in relation to the National Skill Development Program implemented by the NSDC or any other scheme implemented by the NSDC. Thus we find that the matter rests on the fact as to what is National Skill Development Programme implemented by NSDC. We fin
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ance his technical expertise so that he is ready for day one of his job and companies don t have to invest into training him for his job profile. The Skill Mission launched by the Prime Minister on 15 July 2015, has gathered tremendous steam under the guidance of Shri Rajiv Pratap Rudy, Union Minister of State for Skill Development and Entrepreneurship, during the last one year. The target to train more than a crore fresh entrants into the Indian workforce has been substantially achieved for the first time. 1.04 Crore Indians were trained through Central Government Programs and NSDC associated training partners in the private sector. For the first time in 68 years of India s independence, a Ministry for Skill Development & Entrepreneurship (MSDE) has been formed to focus on enhancing employability of the youth through skill development. The skill ecosystem in India, is seeing some great reforms and policy interventions which is reinvigorating and re-energising the country s workfor
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t of the government policy on Sabka Saath, Sabka Vikaas and its commitment to overall human resource development to take advantage of the demographic profile of our country s population in the coming years. Developing a comprehensive and holistic policy document is an integral part of the process. This requires a fresh look at the already existing National Policy on Skill Development (NPSD), 2009. The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenge of skilling at scale with speed and standard (quality). It will aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link the skilling with demand centres. In addition to laying down the objectives and expected outcomes, the effort will also be to identify the various institutional frameworks which can act as the vehicle to reach the expected outcomes. The national policy will also provide clar
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s being provided by them are not in relation to and are not covered under (ii) A Vocational Skill Developmental Course under the National Skill Certification and Monetary Reward Scheme (iii) Any other scheme implemented by the NSDC. Thus it is clearly stated by them that they are not covered and are not eligible for exemption under Sr No (ii) and (iii) as mentioned in Sr. No. 69 of Notification 12/2017-CentraI Tax. We find that the applicant is further claiming in their application that NSDC has not announced explicitly any course programme which would be considered as part of National Skill Development Programme implemented by NSDC, It is reiterated that at the time of hearing they were requested to confirm and obtain in writing from NSDC as to what are the programmes that are being undertaken by NSDC under National Skill Development Programme and submit the same. However nothing in this regard had been submitted by the applicant from NSDC. Therefore in absence of any explicit Nationa
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programme is being implemented by NSDC it would mean that the services are being provided to NSDC by the applicant with respect to implementation of its programme related to National Skill Development Programme. But from the facts of the case as put up by the applicant before this authority, we find that some of the courses of vocational training that have been designed by the applicant are approved and certified by NSDC and thus we find that the services in this respect being in the nature of approval and certification of course being provided by NSDC to the applicant and not by the applicant to NSDC and thus there is no question of the applicant being eligible for any exemption in this respect as they are a services recipient and not service provider in relation to NSDC. In addition to this we also find secondly that, the claim of the applicant with respect to GST is also made by the applicant basing their contentions on the premise that there is no explicit National Skill Developme
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pment and Entrepreneurship, 2015 provides as under:- Scope of the National Skill Development Policy a) Institution based skill development including ITIs/ITCs/vocational schools/ technical schools/ polytechnics/ professional colleges, etc. b) Learning initiatives of sectoral skill development organized by different ministries/departments. c) Formal and informal apprenticeships and other types of training by enterprises. d) Training for self-employment/ entrepreneurial development. e) Adult learning, retraining of retired or retiring employees and lifelong learning. f) Non-formal training including training by civil society organisations. g) E- web-based learning and distance learning. The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenges of skilling at scale with speed and standard (quality). It would aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common
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lopment Mission would not only consolidate and coordinate skilling efforts, but also expedite decision making across sectors to achieve skilling at scale with speed and standards. It will be implemented through a streamlined institutional mechanism driven by Ministry of Skill Development and Entrepreneurship (MSDE). Key institutional mechanisms for achieving the objectives of the Mission have been divided into three tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission. Mission Directorate will be supported by three other institutions: 1. National Skill Development Agency (NSDA). 2. National Skill Development Corporation (NSDC) and 3. Directorate General of Training (DGT) – all of which will have horizontal linkages with Mission Directorate to facilitate smooth functioning of the national institutional mechanism. Seven sub-missions have be
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country – Industrial Training Institutes – play a vital role in the economy by providing skilled manpower in different sectors with varying levels of expertise. IT Is are affiliated by National Council for Vocational Training (NCVT). DGT also operationalises the amended Apprentices Act, 1961. 2. National Skill Development Agency (NSDA) The National Skill Development Agency (NSDA), an autonomous body, (registered as a Society under the Society s Registration Act 1860) was created with the mandate to co-ordinate and harmonise the skill development activities in the country, is part of the Ministry of Skill Development & Entrepreneurship (MSDE). Functions : Gazette Notification of NSDA Take all possible steps to meet skilling targets as envisaged in the 12th Five Year Plan and beyond. Coordinate and harmonize the approach to skill development among various Central Ministries/ Department. State Governments, the NSDC and the Private sector. Anchor and operationalize the NSQF to ensure
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are as under: 1. Rationalization of the Skill Development Schemes of the Government of India 2. Creation of an integrated Labour Market Information System 3. Engagement with States 4. Skills Innovation Initiative 3. National Skill Development Corporation The National Skill Development Corporation India (NSDC) was setup as a one of its kind, Public Private Partnership Company with the primary mandate of catalysing the skills landscape in India. NSDC is a unique model created with a well thought through underlying philosophy based on the following pillars: 1. Create: Proactively catalyse creation of large, quality vocational training institutions. 2. Fund: Reduce risk by providing patient capital. Including grants and equity. 3. Enable: the creation and sustainability of support systems required for skill development. This includes the Industry led Sector Skill Councils. The main objectives of the NSDC are to: Upgrade skills to international standards through significant industry involv
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International Engagement – Investments, technical assistance, transnational standards, overseas jobs and other areas. Central Ministries – Participation in flagship programmes like Make in India, Swachh Bharat, Pradhan Mantri Jan Dhan Yojana, Smart City, Digital India and Namami Ganga, among many others. State Governments – Development of programs and schemes, alignment to NSQF and capacity building, operationalization Of program, capacity building efforts among others. University/SchooI systems – Vocationalisation of education through specific training programs, evolution of credit framework, entrepreneur development, etc. Non-profit organizations – Capacity building of marginalized and special groups, development of livelihood, self-employment and entrepreneurship programs. Innovation – Support to early-stage social entrepreneurs working on innovative business models to address gaps in the skilling ecosystem, including programs for persons with disability. Over 5.2 million students t
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stem (SDMS) with 1400 training partners, 28179 training centres, 16479 trainers, 20 Job portals, 77 assessment agencies and 4983 empanelled assessors. Hosting infrastructure certified by ISO 20000/27000 supported by dedicated personnel. 4. National Skill Development Fund The National Skill Development Fund was set up in 2009 by the Government of India for raising funds both from Government and Non Government sectors for skill development in the country. The Fund is contributed by various Government sources, and other donors/ contributors to enhance, stimulate and develop the skills of Indian youth by various sector specific programs. A public Trust set up by the Government of India is the custodian of the Fund. The Trust accepts donation, contribution in cash or kind from the Contributors for furtherance of objectives of the Fund. The Fund is operated and managed by the Board of Trustees. The Chief Executive Officer of the Trust is responsible for day-to- day administration and manage
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rainer Programs, conduct skill gap studies and Assess and Certify trainees on the curriculum aligned to National Occupational Standards developed by them. As on date 37 Sector Skill Councils are operational. There are over 600 Corporate Representatives in the Governing Councils of these SSCs. In view of the above we clearly find that in broader terms there is National Policy on Skill Development which is very broad and has a very broad vision as well. It envisions the establishment of a National Skill Development initiatives with the following mission:- National Skill Development initiative will empower all individuals through improved skills, knowledge, nationally and internationally recognized qualifications to gain access to decent employment and ensure India s competiveness in the global markets. Within this broad policy framework, there is National Skill Development mission launched on 15.07.2015 by the Hon ble Prime Minister. The mission has been developed to create convergence a
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undertaken through Government funding, Government Schemes and specifically designed Government Programmes. We find that National Skill Development Programme would consist of the schemes, actions and deeds that are actually done or are mandated to be done by various ministries, Government departments or their attached offices, Directorates or other institutions as per their instructions and for which expenses in that regard are to be incurred by the Central or State Governments through budgetary provisions. The intent of the Notification No. 12/2017-CT as discussed above provides that exemption would be available only in respect of Any services provided by a Training partner approved by National Skill Development Corporation in relation to the National Skill Development Programme implemented by the NSDC. Here it would be worth to mention that NSDC is a non-profit company set up by the Ministry of Finance and its mandate is to promote Skill development in various ways and it is undertak
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ps Ability to leverage financial requirements Ability to leverage management capability Thus we find that the above functions of NSDC are in the nature of encouraging and supporting private sector in skill development which is also one of its mandate and functions. Apart from this it is also the implementing agency for various schemes such as Pradhan Mantri Kaushal Vikas Yojana , Sankalp, Udaan, etc. Thus it can be easily seen that if the intent of the Legislature had been to extend the benefit of exemption of present Notification in respect of all activities in relation to skill development done by NSDC, in that case the wordings Of the Notification would not have been restrictive, which is very clear when we see that in the Notification, exemption benefit is restricted and would be applicable only in respect of services provided in relation to national Skill Development Programme implemented by NSDC. In continuation of the above discussion, we find that the main schemes that would be
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ces and organizations and cannot in any way be construed to be including each and every activity under the sun which enhances skills in one way or other. 06. In view of the deliberations as held hereinabove, we pass the order as under : ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-37/2017-18/B-44 Mumbai, dt. 05.06.2018 For reasons as discussed in the body of the order, the question is answered thus – Q.1. – Whether educational courses offered by the Applicant which have been approved by National Skill Development Corporation (hereinafter referred to as NSDC ) would be construed as in relation to National Skill Development Programme implemented by NSDC? Answer:- Answered in the negative. Q.2. – The Applicant offers certain educational courses for which qualification standards / framework i.e. QP/ NOS has not been defined by NSDC and will be approved by NSDC as and when the relevant QP/ NOS would
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cant? Answer :- No, in view of answers to Q.No. 1, 2 and 3 above. Q.5. – If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 17/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporates and business institutions? Answer:- No, in view of answers to Questions above. Q.6.- Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centres located across the country, will be considered as offered by the Applicant? Answer:- Not relevant and not being answered in view of the answers to question above. Q.7. – If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No. 17/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant? Answer:- No, in view of answers to Questions above. – Case laws – Decisions – Judgements
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