Services to students, faculty and staff of skill development courses for diesel mechanic, welder and sewing technology are exempt under Entry 66 (a) of Notification 12/2017 - Central Tax (Rate) dated 28/06/2017. Exemptions under entry 64 or 71 of the above notification are not applicable.

M/S. THE LEPROSY MISSION TRUST INDIA BILL EDGAR MEMORIAL VOCATIONAL TRAINING CENTRE
(AAR, West Bengal)

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The applicant is registered under section 12A of the Income Tax Act 1961. It is a Non-Governmental Organization (NGO), which, among others, administers a Vocational Training Institute at Bankura named Bill Edgar Memorial Vocational Training Centre (hereinafter BEMVT) primarily for skill development of the underprivileged suffering from leprosy.

The applicant imparts training courses at BEMVT as mentioned in the Table below. The courses on formal trade include that for diesel mechanic, welder and sewing technology, which are recognized by National Council of Vocational Training.

The applicant wants to know whether the service of providing vocational training courses at its Vocational Training Centre, Bankura is exempt under entry no 64 or 66 of Notification 12/2017 - Central Tax (Rate) dated 28/06/2017 (State Notification No. 1136-FT dated 28/06/2017), as amended time to time (hereinafter collectively called “Exemption Notification”).

Observations and findings of the Bench

The applicant is not the Government or local authority. Entry No. 64 of the Exemption Notification is not, therefore, applicable. 

Services provided by an educational institution to its students, faculty and staff Entry No. 66 (a) of the Exemption Notification. “Educational institution” is defined under clause 2(y) of the Exemption Notification as an institution providing services by way of-

(i) Pre-school education and education up to higher secondary school or equivalent;

(ii) Education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; or

(iii) Education as a part of an approved vocational education course.

Clause h(ii) of the Exemption Notification defines an “approved vocational course” as a modular employable skill course, approved by NCVT and run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. BEMVT is registered with DGET and its courses on formal trade skills of diesel mechanic, welder and sewing technology, as mentioned in the Table in para 2.2 above, are approved by NCVT. It is, therefore, imparting education as a part approved vocational education courses. The applicant is, therefore, an educational institution in terms of clause 2(y)(iii) of the Exemption Notification, and its supplies to the students, faculty and staff relating to the courses imparting skills of diesel mechanic, welder and sewing technology are exempt in terms of Entry 66 (a) of the Exemption Notification.

The applicant’s services to the students, faculty and staff with respect to the skill development courses for diesel mechanic, welder and sewing technology are exempt under Entry 66 (a) of Notification 12/2017 - Central Tax (Rate) dated 28/06/2017 (State Notification No. 1136-FT dated 28/06/2017), as amended time to time. Exemptions under entry 64 or 71 of the above notification are not applicable.

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