Vocational Training Courses recognised by NCVT exempt from GST
- | Divita S Gupta
The Andhra Pradesh bench of the Authority of Advance Ruling has ruled that GST is not applicable on services provided under vocational training courses recognised by National Council for Vocational Training. The applicant is the largest leprosy focussed non-governmental organisation in India offering a wide variety of programs including Healthcare, Sustainable Livelihood, Community Empowerment, Advocacy, and research and training.
The applicant approached the Andhra Pradesh AAR seeking an advance ruling to clarify whether services provided under vocational training courses recognised by National Council for Vocational Training are exempted from GST either under Entry No.64 of exemptions list of Goods and Services Tax Act, 2017 or under Educational Institution defined under Notification 12/Central Tax. The AAR relayed the following observation - The vocational training provided by the applicant in respect of which their query raised is mentioned in their submissions in the form of a table which mentioned both Formal Trades and Informal Trades. Formal Trades in relation to Diesel Mechanic, Computer Operator and Programming Assistance (COPA), Welder, Dress Making and Motor Mechanic are affiliated/recognised by the National Council for Vocational Training (NCVT), Ministry of HRD. These courses come under the purview of the MSD&E (Ministry of Skill Development and Entrepreneurship). They also offer Informal Trade courses both Institutional and Community Based. These vocational courses are attracting the Nil rate of tax under GST Act, 2017 under the Entry 66 of Notification No. 12/2017 CT Rate dated June 28, 2017.
As such the AAR contended that vocational training courses that are recognised by the NCVT are exempted under GST.