No GST Exemption on Services given to society funded/controlled by State Government: AAR

The present application has been filed under the CGST Act, 2017 by a company named Information and Communication Technology Academy of Kerala (Applicant) before the Kerala Authority for Advance Ruling Goods and Services Tax Department, Tax Tower, Thiruvananthapuram.

The Kerala Authority for Advance Ruling (AAR) issued Advance Ruling No. KER/35/2025 concerning M/s Information and Communication Technology Academy of Kerala (ICTAK) and its services provided to the Kerala Development and Innovation Strategic Council (K-DISC).

M/s Information and Communication Technology Academy of Kerala (ICTAK) is a private company with GSTIN 32AADCI4163N1ZH. Its main work is involved in skill development and training programmes to improve people’s abilities and help them get jobs.

K-DISC, established in 2013 and restructured as a society in May 2021 under the Travancore-Cochin Literary, Scientific and Charitable Societies Act, is fully funded by the Kerala State Budget. ICTAK argued that K-DISC should be treated as a government department, making its services eligible for GST exemption.

Questions Asked by the Applicant:

The applicant asks the following questions, seeking the present Kerala Authority for Advance Ruling:

“Q1. Whether the supply of services provided by Information and Communication Technology Academy of Kerala (ICTAK) to Kerala Development and Innovation Strategic Council (K-DISC), which functions under the aegis of the Kerala Government for advancement of technology and innovation, is eligible for exemption from GST?

Q2. Whether ICTAK is eligible to claim Input Tax Credit (ITC) on the GST charged on goods and services procured from subcontractors for providing services to Kerala Development and Innovation Strategic Council (K-DISC)?”

AAR’s Decision on Classification

The Kerala Authority for Advance Ruling Goods and Services Tax gave the following answers to the questions asked by the applicant:

Answer 1: The Kerala Authority for advance ruling said that the services of Information and Communication Technology Academy of Kerala (ICTAK) provides to Kerala Development and Innovation Strategic Council (K-DISC), even though K-DISC works under the Kerala Government, must pay GST and is not exempt.

Answer 2: The Kerala AAR said that ICTAK can claim Input Tax Credit (ITC) on the GST paid for goods and services bought from subcontractors.