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September 9, 2021

Vocational Training Courses by Leprosy Mission Trust India is exempt under GST

by Mahesh Mara in GST, Legal Court Judgement

Vocational Training Courses by Leprosy Mission Trust India is exempt under GST

Fact and Issue of the case

M/s. The Leprosy Mission Trust India, Vocational Training Center, Vadathorasalur, Thiyagadurga, Kallakurichi District, Tamil Nadu 606 206. (hereinafter called the ‘Applicant’) is registered under the GST Vide GSTIN 33AAATT0691A1ZY. The applicant is engaged in the business of imparting vocational skills to young adolescents coming from families affected with leprosy and individuals with disabilities. Their project benefits Children self-affected with leprosy, Children of leprosy affected persons, differently abled, and Parentless Children with the objective of helping them find job, make them employable and to help them earn better living. They have sought Advance Ruling on the following question:

Whether services provided under vocational training courses recognized by National Council for Vocational Training (NCVT) or State Council of Vocational Training (SCVT) is exempt either under Entry No. 64 of exemption list of Goods and Service Tax Act 2017 or under Educational Institution defined under Notification 12/2017 Central Tax (Rate).

The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.

The Leprosy Mission Trust of India provide following Vocational Training Courses at Regional Industrial Training Institute, Vadathorasalur, Tamil Nadu 606206.

  • Vocational Training Courses recognized by National Council for Vocational Training (NCVT) such as Mechanic Motor Vehicle, Electrician, and sewing Technology.
  • Vocational Training Courses recognized by State Council of Vocational Training (SCVT) – Mechanic Refrigeration & Air Conditioning, Electrical Technician, Automobile Mechanic 8s Driving School – 2 Wheeler & 4 Wheeler.
  • Informal trades with TLM Certification such as Mechanic Refrigeration & Air Conditioning, Electrical Technician, Automobile Mechanic and Tailoring.

Observation of the Authority

In the instant case, the courses offered by the applicant namely Mechanic (Motor Vehicle), Electrician, Sewing Technology are courses approved by National Council for Vocational Training (NCVT/Central) which has been evidenced by the certificates issued to candidates on completion of courses as produced by the applicant. These certificates are issued by NCVT wherein the name of the applicant is mentioned as the name of the institute. In respect of Mechanic Refrigeration& Air Condition and Central Plant, Electrical Technician and Automobile Mechanic are approved by State Council of Vocational Training (SCVT), it is seen that the certificates are issued by the Department of Employment and Training of Government of Tamil Nadu wherein the name of the applicant figures as the institute imparting the training. Thus from the certificates issued to the candidates completing the above said vocational courses, it is clear that the courses are affiliated to the NCVT/SCVT which falls under SI. No. 66 Notification 12/2017 Central Tax (Rate) as education as part of an approved vocational education course.

The applicant on being questioned about the validity of affiliation vide letter of the Registry dt. 29.07.2021, had replied vide their letter dt. 29.07.2021 that they have been re-affiliated in the year 2016 to meet the requirements of Quality control of India, The affiliation with NCVT is a permanent one and de-affiliation will be done only if requested by the applicant institute. However in respect of SCVT affiliation, it was mentioned that the period of affiliation is 3 years which expired on 30.06.2021 and that they have applied for re-affiliation on 26.02.21, produced a copy of the application. Hence the courses recognised by SCVT are subject to reaffiliation being granted by the Department of Employment and Training of Government of Tamil Nadu.

To sum up, the services provided by the applicant under vocational training courses recognized by National Council for Vocational Training (NCVT) or State Council of Vocational Training (SCVT) are exempt under Serial Number 66 Notification 12/2017 Central Tax (Rate) as education as part of an approved vocational education course. In the instant case, courses affiliated to SCVT are exempt subject to re-affiliation by the Department of Employment and Training of Government of Tamil Nadu.

Conclusion

(i) The services provided by the Leprosy Mission Trust India, Regional Industrial Training Institute, Vadathorasalur under Vocational Training Courses pertaining to Mechanic (Motor Vehicle), Electrician, Sewing Technology recognized by National Council for Vocational Training (NCVT) are exempt under Serial Number 66 of Notification 12/2017 Central Tax (Rate) as education as part of an approved vocational education course.

(ii) Services provided by the applicant under Vocational training courses pertaining to Mechanic Refrigeration & Air Condition and Central Plant, Electrical Technician and Automobile Mechanic recognized by State Council of Vocational Training (SCVT) is exempt under Serial Number 66 Notification 12/2017 Central Tax (Rate) as education as part of an approved vocational education course subject to re-affiliation pending being granted by the Department of Employment and Training of Government of Tamil Nadu.

Read the full order from below

Vocational-Training-Courses-by-Leprosy-Mission-Trust-India-is-exempt-under-GST

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