AAR Grants GST Exemption to Charitable Trust Eligible for Government-Funded Training Services

M/s Sanskar Foundation is a charitable trust registered under the Bombay Public Charitable Trust Act, 1950 and Section 12AB of the Income Tax Act, 1961 and has approached the Gujarat AAR seeking clarification on GST exemption for various services provided by it. The applicant is engaged in providing vocational training, self-defence programmes for women, mental health awareness programmes, yoga camps, farmer training, sanitation awareness, computer and ITI training, and other skill development activities under work orders issued by Government departments and institutions.

The applicant sought a ruling on whether such services were exempt under different entries of Notification No. 12/2017-Central Tax (Rate), especially Entry No. 1 relating to charitable activities, Entry No. 54 relating to agricultural extension services and Entry No. 72 relating to Government-funded training programmes.

The applicant is of the view that the services provided by it are exempt; however, the applicant is uncertain. Therefore, the applicant seeks an advance ruling on the following questions:

“(a) Whether the services provided by the applicant by way of providing services under the National Mental Health Mission are exempt under GST under Sr No. 1 of Notification No. 12/2017-Central Tax (Rate)?

(b) Whether the services provided by the applicant by way of providing services under the National Mental Health Mission are exempt under GST under Sr No. 72 of Notification No. 12/2017-Central Tax (Rate)?

(c) Whether the services provided by the applicant by way of providing self defence training for women (i) as per the order of the Gujarat Police (ii) self defence programme under Surakhsha Sen Programme by Gujarat Police (iii) Self Defence trainingforfemales by State Project Office implemented through Education Department, Govt of Gujarat is exempt under GST under Sr No 72 of Notification No 12/2017- Central Tax (Rate)?

(d) Whether the services provided by the applicant by way of providing and conducting a training programme for training to Goldsmiths were provided to Gujarat Matikaam Kalakari and Rural Technology Institute (or the institutes). Conducting training and seminars for Prime Minister Vishwakarma (conducted by Government and Semi Government institutions) exempt under GST under Sr No. 72 of Notification No. 12/2017-Central Tax (Rate)?

(e) Whether the services provided by the applicant by way of providing vocational training at Kasturba Gandhi Balika Vidhyalay are exempt under GST under Sr No. 72 of Notification No. 12/2017-Central Tax (Rate)?

(f) Whether conducting a seminar for the development of women is exempt under Sr No. 71 or under Sr No. 72 of Notification No. 12/2017-Central Tax (Rate)?

(g) Whether (a) Providing vocational training and (b) Providing computer or ITI Training is covered under No. 69 or under Sr No. 66 or under Sr No. 72 of Notification No. 12/2017-Central Tax (Rate)?

(h) Whether the services provided by the applicant by way of yoga camp are exempt under GST under Sr No. 1 of Notification No. 12/2017-Central Tax (Rate)?

(i) Are the services provided by way of providing training to agriculturists exempt under GST under Sr No. 54 of Notification No. 12/2017-Central Tax (Rate)?

(j) Whether conducting a seminar for (a) deaddiction (detoxification) of tobacco and drugs (b) Conducting training for cleaning and sanitation (c) blood donation camp (d) Is Road safety training exempt under Sr No. 1 of Notification No. 12/2017-Central Tax (Rate)?”

The Authority examined each activity separately and observed that services provided under Government-funded training programmes would qualify for exemption where the conditions prescribed under the relevant notification entry were fulfilled.

The AAR held that services provided under the National Mental Health Programme were exempt under Entry No. 1 of Notification No. 12/2017-Central Tax (Rate), subject to the applicant holding valid registration under Section 12AB of the Income Tax Act, 1961. The Authority observed that such activities amounted to charitable activities involving public awareness and skill development relating to mentally affected and traumatised persons.

The Authority further ruled that self-defence training programmes conducted for women under Gujarat Police initiatives, including the Suraksha Setu Programme and programmes implemented through the Education Department, were exempt under Entry No. 72 as the services were provided under Government-funded training programmes.

Training provided to goldsmiths under the Prime Minister Vishwakarma Scheme through Gujarat Matikaam Kalakari and Rural Technology Institute was also held exempt, as the scheme was fully funded by the Government and covered under Entry No. 72 of Notification No. 12/2017.

The AAR also granted exemption to vocational training provided at Kasturba Gandhi Balika Vidyalaya, observing that such institutions operate with Government support and the services fall within Entry No. 72.

The Authority held that yoga camps conducted by the applicant were exempt under Entry No. 1, as the advancement of yoga falls within the definition of charitable activities, subject to valid Section 12AB registration.

However, the Authority denied exemption for blood donation camps and road safety training. It observed that blood donation is primarily for the collection of blood supply and the health checks conducted before donation are merely incidental. Similarly, road safety training cannot be treated as a preventive health activity since road accidents cannot be equated with disease prevention.

The AAR also held that an exemption cannot be granted for vocational/computer/ITI training without complete details and supporting work orders, as a ruling cannot be issued on hypothetical or incomplete facts.