Goods and Services Tax – Started By: – RAVINDRA SANCHETI – Dated:- 4-6-2018 Last Replied Date:- 9-6-2018 – Hello One of the client is a company registered as Non Profit Organisation and providing services of Commercial Pilot License Training to students. Query – Whether the company is liable for GST on Training Fees collected from their students on Training for Commercial Pilot License ? Please give reference of circular or notification if exempt. – Reply By Alkesh Jani – The Reply = Sir, In my point of view GST is applicable.Our experts may correct me if mistaken.Thanks – Reply By Alkesh Jani – The Reply = Sir, The training of commercial pilot can be classified under HSN 99929. No Exemption is available. Therefore, GST is applicable. Our experts may correct me if mistaken. Thanks, – Reply By YAGAY and SUN – The Reply = We endorse the view of Mr. Jani. – Reply By RAVINDRA SANCHETI – The Reply = Sir,Thanks for reply In service tax commercial pilot training was exempted since it is cons
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s and other conveyances except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; From above, it is clear that you are eligible to take ITC of motor vehicles and other conveyances (in your case air-craft, gliders etc.) and you can take ITC only if you are to make taxable supplies, i.e. imparting training on flying. The exemption by an educational institute to its student and staff is limited to services mentioned and is not applicable in your case, moreover, in your case, if skill development corporation has declared any such scheme then you can avail that exemption, but as far as my knowledge permits no such scheme is declared, therefore, you are not eligible for this exemption also. Concluding, it can be said that you are required to pay GST. Hope now it is be clear for you. Thanks, –
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dents, faculty and staff; Nil Nil Term educational institute has been defined under Clause (y) of Para 2 of the Notification No. 12/2017 Central tax and Notification No. 12/2017State Tax (Rate) as educational institution means an institution providing services by way of- pre-school education and education up to higher secondary school or equivalent; education as a part of a curriculum for obtaining a qualification recognised by law for the time being in force; education as a pat of an approved vocational education course; A perusal of the entry 66 of the exemption notifications make is very clear that the exemption provided therein is very broad in scope and a blanket exemption from levy of CGST and TGST has been provided on any intra-state supply of services by an educational institution to its student, faculty and staff. No restriction has been made on the basis of nature of services. Only criteria for availing exemption is that supplier of service must qualify as educational institu
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rs Dictionary is bringing up or training; strengthening of the powers of body or mind; culture. In Advanced Law Lexicon (P. Ramanatha Aiyar, 3rd Edition, 2005, Vol.2) 'education' is defined in very wide terms. It is stated: Education is the bringing up; the process of developing and training the powers and capabilities of human beings. In its broadest sense the word comprehends not merely the instruction received at school, or college but the whole course of training moral, intellectual and physical; is not limited to the ordinary instruction of the child in the pursuits of literature. It also comprehends a proper attention to the moral and religious sentiments of the child. And it is sometimes used as synonymous with 'learning'. Hon ble Supreme Court in case of P.A. Inamdar and Ors. v. State of Maharashtra and Ors, AIR 1976 SC 10 while dealing with the basic concept of education has expressed the view as follows: Education is continued growth of personality, steady dev
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ein while dealing with the conception of education their Lordships have observed thus: Education means the systematic instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received…what education connotes is the process of training and developing the knowledge, skill, mind and character of students by formal schooling. D.4 From the above it is very clear that the term education as in literal sense and as defined by the Hon ble Supreme Court, is much wider. Term education encompasses every learning, experience and knowledge gained consciously or unconsciously. Education is a process by which latent capabilities and qualities of a person got polished and refined and makes that person a whole new one in terms of intellectual, social and moral. In a nutshell what education connotes is the process of training and developing the knowledge, skill, mind and character of student
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o service Tax on Flying Training Institute and Aircraft Engineering Institutes under Commercial Training or Coaching Services? (ii.) Whether, the course Completion Certificate offered by such Institutes, to successful students, qualifies as any certificate of diploma or degree or any educational qualification recognized by law for the time being in force or not? The assessee, namely M/s Garg Aviations Limited is a company registered under the Companies Act, 1956 and is running a Flying Training Institute and Aircraft Maintenance Engineering Institute at Kanpur. It is engaged in providing training and coaching to individuals in the field of flying of aircraft for obtaining Commercial Pilot License from the Director Civil Aviation (DGCA), New Delhi. It is also engaged in providing training for obtaining Basic Aircraft Maintenance Engineering Licence. A similar issue arose before the Delhi High Court in Indian Institute of Aircraft Engineering (Supra). The Delhi High Court held as follows
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n 65(27) making such exclusion has been deleted but the Notification dated 25th April, 2011 supra issued in exercise of powers under Section 93 of the Finance Act has exempted coaching or training leading to grant of a certificate or diploma or degree or any educational qualification which is recognized by any law from the whole of Service Tax leviable under Section 66 of the Finance Act . 14. We have wondered, what could be the reason for exempting from payment of service tax those training or coaching centres, even though commercial, whose certificate/degree/diploma/ qualification is recognized by law. The only plausible reason, according to us, can be to exclude from ambit of service tax those training or coaching centres which are otherwise regulated by any law in as much as recognition of certificate/degree/diploma/qualification conferred by such training or coaching centres will necessarily entail regulation by the same law of various facets of such training or coaching centres.
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ose of eligibility for obtaining ultimate licence/approval for certifying repair/maintenance/airworthiness of aircrafts. The Act, Rules and CAR distinguish an approved Institute from an unapproved one and a successful candidate from an approved institute would be entitled to enforce the right, conferred on him by the Act, Rules and CAR, to one year relaxation against the DGCA in a Court of law. The inference can only be one, that the Course Completion Certificate/training offered by such Institutes is recognized by law. 26……….. 27……….. 28. We are therefore of the view that the Instruction aforesaid holding the petitioner to be assessable to Service Tax is contrary to Section 65(27) and the Notification dated 25th April, 2011. Accordingly the said Instruction and the show cause notices given to the petitioner are quashed. The Rule is made absolute and the writ petition is disposed of. Learned counsel appearing for the revenue has not been able to persuade the Court to take a
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ining and coaching provided by flight training institutes are exempted from GST. it may be noted that words commercial training or coaching has not been used in GST. Hence there is no point in discussing whether any activity of imparting knowledge would qualify as coaching or training or education. any service provided by an educational institution shall be exempted and to qualify as an educational institution, such institution must provide education (which could be either pure theoretical knowledge or practical knowledge ore even training in some sport) which is part of the curriculam for obtainining a qualification recognised by law for the time being in force. it may gains be noted that under GST they do not words a degree diploma certificate but qualification which is wider in nature and very well covered commercial pilot license. services – Reply By Alkesh Jani – The Reply = Sir,I welcome the opinion expressed by Sh. Akash Deep ji, but the views expressed by him refer to Sl.No. 66
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