GST on Commercial Pilot License Training Fees
Query (Issue) Started By: – RAVINDRA SANCHETI Dated:- 4-6-2018 Last Reply Date:- 9-6-2018 Goods and Services Tax – GST
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GST
Hello
\nOne of the client is a company registered as Non Profit Organisation and providing services of Commercial Pilot License Training to students.
\nQuery – 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.
\nReply By Alkesh Jani:
\nThe Reply:
\nSir, In my point of view GST is applicable.
\nOur experts may correct me if mistaken.
\nThanks
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nThe training of commercial pilot can be classified under HSN 99929. No Exemption is available. Therefore, GST is applicable.
\nOur experts may correct me if mistaken.
\nThanks,
\nReply By YAGAY and SUN:
\nThe Reply:
\nWe endorse the view of Mr. Jani.
\nReply By RAVINDRA SANCHETI:
\nThe Reply<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ards to GST Law. For better understanding, the Section 17(5)(a) is given below:- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e code (Tariff) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ind and soul of ignorance. It enhances an individual's personality and provides him confidence to reach out to the world. In literal terms, 'Education' according to Chambers 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'. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n oes not cease to be a service to the society. And even though an occupation, it cannot be equated to a trade or a business = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ntral Excise, Customs & Service tax, vs M\/s Garg Aviations Ltd. Central Excise Appeal No. 97 of 2014. The relevant part of the judgment is reproduced asunder: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n excluded from the domain of commercial training or coaching centres, 'training centres or establishments issuing any certificate or diploma or degree or any educational qualification recognized by law'. Even after 30th April, 2011, though the part of Section 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". = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n on offered by Institutes which are without approval of DGCA would not confer the benefit of such relaxation. Thus, the certificate\/training\/qualification offered by approved Institutes, has by the Act, Rules and the CAR been conferred some value in the eyes of law, even if it be only for the purpose 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n aining which is, considering the wide scope of terms education as explained by Hon'ble Supreme court, qualifies as education, as such education is for obtaining a qualification recognised by law i..e commercial pilot license given by DGCA after passing their exam and other test. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on Commercial Pilot License Training Fees Query (Issue) Started By: – RAVINDRA SANCHETI Dated:- 4-6-2018 Last Reply Date:- 9-6-2018 Goods and Services Tax – GSTGot 7 RepliesGSTHello 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 … Continue reading “GST on Commercial Pilot License Training Fees”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12029","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12029"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12029\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n“(a) motor vehicles and other conveyances except when they are used
\n(i) for making the following taxable supplies, namely:-
\n(A) further supply of such vehicles or conveyances ; or
\n(B) transportation of passengers; or
\n(C) imparting training on driving, flying, navigating such vehicles or conveyances;”
\nFrom 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.
\nThe 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<\/p>\n
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\nDescription of Service
\nRate (per cent.)
\ncondition
\n66
\nHeading 9992
\nServices provided-
\n\tby an educational institution to its students, faculty and staff;
\nNil
\nNil
\n 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
\n “educational institution means an institution providing services by way of-
\n * pre-school education and education up to higher secondary school or equivalent;
\n * education as a part of a curriculum for obtaining a qualification recognised by law for the time being in force;
\n * education as a pat of an approved vocational education course;”
\nA 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 s<\/p>\n
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\n Hon'ble Supreme Court in case of P.A. Inamdar<\/p>\n
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\n Hon'ble Supreme Court in case of Schooling, Sole Trustee, Lok Shikshana Trust v. C.I.T (1976) 1 SCC 254 wherein while dealing with the conception of education their Lordships have observed thus:
\n “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.”
\n 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 pers<\/p>\n
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\n “The following questions of law have been framed:
\n (i.) Whether, the respondent is liable to service Tax on Flying Training Institute and Aircraft Engineering Institutes under Commercial Training or Coaching Services?
\n (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?
\n 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 (DG<\/p>\n
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\n 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 tra<\/p>\n
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\n 26………..
\n 27………..
\n 28. We are therefore of the view that the Instruction aforesaid holding the petitioner to be assessable to Service Tax is contrary to Section 6<\/p>\n
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\nI am of the view that training and coaching provided by flight training institutes are exempted from GST.
\nit 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 n<\/p>\n
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