GST payable on Educational Courses Offered by Entities approved by NSDC: AAR [Read Order]

The Authority for Advance Ruling (AAR), Maharashtra has held that there is no tax exemption to the educational courses offered by the entities approved by the National Skill Development Corporation ( NSDC ) under the Goods and Services Tax (GST) regime.

The applicant- Company provides various technical and vocational educational courses. These courses are either funded by NSD/ Centre or State Governments or are paid up courses which are enrolled by individuals, corporates etc. Before the AAR, they sought for a clarification with regard to their tax liability in respect of courses approved by NSDC.

The authority noted that the functions of National Skill Development Corporation (NSDC) are in 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 implementing agency for various schemes such as Pradhan Mantri Kaushal Vikas Yojana , Sankalp, Udaan, etc.

“If services in relation to schemes as mentioned are provided through partner approved by NSDC, then only benefit of Notification as claimed would be applicable to applicant and it would not be applicable in respect of other services relating to skill development provided by applicant. In view of this it is found that NSD programme implemented by NSDC would cover only actual schemes and programmes of skill development that are undertaken by 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. Thus, educational courses offered by applicant which have been approved by NSDC would not be construed as in relation to National Skill Development Programme implemented by NSDC. The 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 , though, NSDC has given exceptional approval on such courses, they will not be treated as in relation to National Skill Development Programme implemented by NSDC. Accordingly benefit of GST exemption as per Notification No. 12 of 2017-Central Tax (Rate), dated 28-6-June 2017 would not be available to applicant.” The authority said.