In Re: IMS Proschool Pvt. Ltd.
GST
2018 (10) TMI 681 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (18) G. S. T. L. 241 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 5-6-2018
GST-ARA-37/2017-18/B-44
GST
SHRI B.V. BORHADE AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by IMS PROSCHOOL PVT LTD., the applicant, seeking an advance ruling in respect of the following questions:
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
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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 corporates and business institutions?”
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?”
Q.7. – “If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No. 172017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?”
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the sa
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CCA, 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 includes preparing graduates and working professionals to appear for various National and International certifications for career development needs, including NCFM Financial Modelling, Financial Analysis, Management Accounting, 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.
II.4 For imparting the aforesaid training, the Applicant has developed its own proprietary training formats, materials and methodology, which are conducted at its cen
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anagement, 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 MAY BE, IN RESPECT OF QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED.
Question of law
Question of law: (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?”
IV.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant relates to the matter as to:
“Whether educational courses offered by the Applicant which have been approved by National Skill
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erewith 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 Mechanical Assembly
(11) Data Science
(12) IFRS
Copy of the approval received from NSDC in relation to all the aforesaid educational courses have been enclosed herewith as ''Exhibit 3.”
GST provisions
IV.4. Entry 69 to the Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 ('the Notification') exempts from GST levy:
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
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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, various courses have been announced under National Skill Certification and Monetary Reward Scheme which will get covered as vocational skill development courses at Sr. No. (ii) above. Therefore, any educational course which are in connection to such specified schemes or vocational courses, will be liable to GST exemption under the Notification.
IV-7. The Applicant would like to further submit that, till date, NSDC has not announced explicitly any course / programme which would be considered as part of National Skill Development
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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 educational courses offered by NSDC training partners, should contain pre-defined qualification standards / knowledge parameters. In this regard, Ministry of Human Resource Development has designed and notified qualification assurance framework i.e. National Vocational Education Qualifications Framework (hereinafter referred to as 'NVEQF'), which outlines qualifications / levels / competencies of knowledge and skills that a learner must possess, for the purpose of getting any given job role. Within such NVEQF framework,
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ired 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 focusing on employability through placement in industry or self – employment, the approved educational courses offered by the Applicant is linked with different sector or industry. Also, the curriculum of each of the educational courses offered by the Applicant, is aligned to pre-defined QP/ NOS.
Syllabus, training delivery plan and QP / NOS reference in relation to 12 NSDC approved educational courses which are offered by the Applicant have been enclosed herewith as 'Exhibit-6'
IV.15. The Applicant would like t
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ements 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, NSDC conducts candidate data validation exercise every year, in which details of each candidate reported by the Applicant on SDMS (NSDC portal) is validated and verified. Furthermore, NSDC in their emails sent to the Applicant for sharing information related to target achievement of the Applicant, has specified that annual performance review of the Applicant will be done by MSDE and hence, the training and placements details will be shared with MSDE.
IV.19. The Applicant w
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ement 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. In the interim period, NSDC has given exceptional approval on such courses. Till the time QP/ NOS are defined for such educational courses and are eventually approved by NSDC, whether such courses will be treated as in relation to National Skill Development Programme implemented by NSDC?”
V.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant relates to the matter as to:
“The Applicant offers certain educational courses for wh
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tline 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 cum declaration in prescribed format
Upload declaration on NSDC website (SDMS)
Obtain approval online on SDMS
V.4. In connection to job role for which NOS / QPs has not been outlined yet by NSDC, NSDC is providing conditional approval to such courses, by earmarking status of approval of such course on SDMS ('NSDC portal') as 'exception'. Later, as and when QP/ NOS would be defined by NSDC, the approved training partner would be
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ption, 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 as in relation to National Skill Development Programme implemented by the NSDC.
II. Question of law: (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 ve
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s 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 educational courses does not change the primary structure of such courses. Such modified versions are aligned to QP / NOS and are more beneficial for students, to enhance their skill.
VI.5. The Applicant would like to further, submit that the modified versions of approved educational courses are included and reported by the Applicant to NSDC, as part of its performance review towards achievements of its skill develo
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e 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 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
Co-relation of the Notification with the facts of Applicant
VII.3. The Applicant is training partner approved by NSDC.
VII.4. As men
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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 courses are offered to corporates and business institutions”
VIII.2. The Applicant would like to mention that it renders education services to individuals, Govt. institutions and corporates. Certain educational courses such as management accounting, financial modelling, financial analyst, business accounting which are already approved by NSDC, are conducted by t
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triction 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 exemption should be available on the same.
IV. Question of law: (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?”
IX.1. The Applicant s
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iness 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 definite period.
* for facilitating provision of such services under the Business Partner Agreement, the Applicant has permitted the business partner to use 'PROSCHOOL' training materials, training formats, know-how and expertise.
* the Applicant has granted non-exclusive, non-transferable, non-assignable, royalty free, limited term, to
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he 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 Applicant, which is mandatory for business partner to effectively render services for training students.
* Consideration payable to business partner is computed as specified percentage of net realised fee from student, depending upon nature of educational course offered;
* Business partner and the
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ed 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 under the direction of the Applicant, raise invoice upon students in the name and on behalf of the Applicant, collect fees from students on behalf of the Applicant.
IX.7. It is also, clearly visible that the business partner is required to use 'the Company i.e
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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 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?”
X.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant
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onal 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 Hon'ble Authority that:
* The educational courses approved by NSDC and conducted by the Applicant should be treated as is in relation to National Skill Development Programme implemented by NSDC.
* The educational c
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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. This includes preparing graduates and working professionals to appear for various National and international certifications for career development needs, including NCFM Financial Mod
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hich 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 Programme implemented by NSDC?
Yes. As the applicant is engaged, in the business of skilling the youth with the objective of helping them find decent job, make them employable
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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 National Standards.
As of 31st March 2015, across 28 Sectors, standards for 1319 Job Roles pegged at NSQF levels 1 to 8 have been defined by the Sector Skill Councils. 14 S
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?
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 Skill Mission is chaired by the Hon'ble Prime Minister, Shri Narendra Modi himself. India is a country today with 65% of its youth in the working age gro
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e. 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 Common norms across all skill development programs in the country so that they are all standardized and aligned to one object. The ITI ecosystem has also
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x 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 the youth with the objective of helping them find decent jobs, make them employable and to help them earn a better living. The applicant claim
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“) 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 requested to confirm and obtain in writing from NSDC as to what are the programmes that are being undertaken by NSDC under National Skill Deve
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ection (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 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 a
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r.
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 partnerships.
3. It acts as a catalysing skill development by providing funding to enterprises, companies and organizations that provides skill training.
4. It also develops appropriate modules t
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n 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 find that 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 producti
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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 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 (
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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 clarity and coherence on how skill development efforts across the country can be aligned within the existing institutional arrangements. This policy will link skills developme
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ill 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 National Skill Development Programme which can be considered as implemented by NSDC, we need to examine and determine under what circumstanc
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espect 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 Development Programme implemented by NSDC.
Here in view of the above we are required to examine National Policy on Skil
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kill 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 standards and link the skilling with demand centres.
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ordinate 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 been proposed initially to act as buildi
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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 that
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ther actions taken by the NSDA 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 sk
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kills competitions and participation in Special Initiatives like Udaan focused on J&K.
* 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
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mentation agency for the largest voucher-based skill development program, Pradhan Mantri Kaushal Vikas Yojana.
Skill Development Management System (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
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set up as autonomous industry-led bodies by NSDC. They create Occupational Standards and Qualification bodies, develop competency framework, conduct Train the Trainer 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 p
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t before the phrase '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.
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.
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ion will be done across six sets of criteria:
* Employer view of demand for the specific skills
* Alignment with the NSDC's mission
* Robustness Of overall plan and operating model
* Ability to leverage partnerships
* 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 b
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n view of this we find that the National Skill Development Programme would cover only the actual schemes and programmes of skill development that are undertaken by the Government through its various ministries, departments, directorates, attached offices 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 impleme
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Development Programme implemented by NSDC?”
Answer :- Answered in the negative.
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. 14/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?”
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 t
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