No GST Applicable on Market led Fee-based Services Scheme, approved by NSDC: AAR

The Authority of Advance Ruling (AAR Karnataka) has ruled out that No GST Applicable on Market led Fee-based Services Scheme, approved by NSDC.

The applicant is a Private Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 201 7 (hereinafter referred to as the CGST Act and KGST / SGST Act respectively). The applicant is operating the platform ‘Scaler”, an outcome based online transformative upskilling platform which aims to enhance the skills of working tech professionals.

The applicant has sought advance ruling in respect of the following question:

1. What is the applicable GST on the services provided by the applicant under the “Market led Fee-based Services Scheme”?

2. Whether the applicant is eligible for exemption under entry 69 of Notification No.12/2017-Central Tax (Rate), dated 28.06.2017?

At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act.

We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by their authorized representative and also their submissions made during the time of hearing.

The applicant states that they have been operating the platform ‘Scaler’ an online transformative upskilling platform which aims to enhance the skills of working tech professionals that NSDC has come up with a new scheme by name ‘market led Fee­based Services’ (hereinafter referred to as ‘scheme’) and the Applicant has entered into an agreement with NSDC to execute the above scheme and hence they are now an ‘Approved Training Partner’ of NSDC.

The applicant is of the view that the services provided by them are exempted vide Entry 69 of Notification No.12/2017-Central Tax (Rate), dated 28.06.2017.

As per the above entry, the following conditions have to be satisfied by the Applicant to claim exemption on the services provided by them:

1. They have to be a training partner approved by the National Skill Development Corporation.

2. Services provided should be m relation to any other Scheme implemented by the National Skill Development Corporation.

Now we examine one by one whether the Applicant satisfies the conditions mentioned supra in para 11. The Applicant has stated that he is an approved training partner of National Skill Development Corporation and has submitted a copy of the certificate from NSDC certifying the same. Thus, the applicant has satisfied the first condition.

The Applicant has also stated that they have entered into an agreement with NSDC for executing the “Market led Fee-based Services” scheme which is introduced and implemented by the NSDC. Thus, the applicant has satisfied the second condition also.

Since the Applicant has satisfied both the conditions mentioned supra in para 11, the services provided by the Applicant in the instant case is exempted.

RULING

1. The applicable GST on the services provided by the applicant under the “Market led Fee-based Services Scheme” is Nil.

2. The applicant is eligible for exemption under entry 69 No.12/ 2017-Central Tax (Rate), dated 28.06.2017.

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