No GST on Education and Vocational Training Programs Approved by State Government: AAR

M/s. Additional Skill Acquisition Programme Kerala (ASAPK) is the legal applicant in this case, which is an undertaking of the Higher Education Department, Government of Kerala. The program focuses on developing skills in students and the general community to increase their capability to move self-sufficiently within the labour market to realise potential through sustainable employment. The program was established in 2012. ASAP was converted into ASAPK as a company under Section 8 of the Companies Act 2013, is completely owned by the Government of Kerala, and came into force on January 22, 2021.

These programs are for stakeholders, targeting students, NEET youth, workers, returnees, women, and disadvantaged groups, provided through skill training, STEM education, and capacity building. ASAPK organises courses, administers examinations, and releases certifications, delivers training through accredited agencies, collects fees from students, and pays out service charges to agencies.

Questions Asked by Applicant:

The applicant, Additional Skill Acquisition Programme Kerala (ASAPK), has asked the following questions before the Kerala Authority for Advance Ruling Goods and Services Tax Department, Tax Tower, Thiruvananthapuram, seeking the advance ruling No. KER/17/2025. Dated 01.07.2025:

“Question 1. What is the appropriate classification of the services supplied by M/s ASAP by way of education and vocational training?

a. In relation to the courses approved by the Government of Kerala, as enclosed in Exhibit 1.

b. In relation to the courses approved by NCVET.

c. In relation to courses where consideration is received from govt/agencies/other corporates arising out of CSR.

Question 2. Whether the exemption in Notification 12/2017-CT (rate) applies to the services supplied as per Entries 4, 66, and 69 of the said notification?

Question 3. Whether the applicant is liable to pay tax on the said supplies of services?”

What Did Ruling Say?

In accordance with the Kerala Authority for Advance Ruling Goods and Services Tax Department, Tax Tower, Thiruvananthapuram, the following answer has been given to the above question:

Answer 1:

a) In reference to the courses approved by the Government of Kerala (as listed in Exhibit 1 of the application), the services are classified under SAC999294—Other education and training services not elsewhere classified.

b) In relation to the courses approved by NCVET and the courses where consideration is received from government agencies or corporates (including CSR funding), due to insufficient details regarding individual courses, no specific SAC can be assigned at this stage. However, since these services are educational and vocational in nature, they will mainly fall under Heading 9992, Education Services.

Answer 2:

a. Exemption under Entry 66 is applicable to services related to courses approved by the Government of Kerala.

b. Exemption under Entry 69 is applicable to services related to NCVET-approved courses (NSQF-aligned qualification), subject to the conditions specified under Entry 69 being fulfilled.

c. In respect of services where consideration is received from government agencies or corporates (including CSR funding), no specific exemption notification or supporting evidence has been referenced by the applicant; hence, the Authority is unable to provide a ruling.

Answer 3:

a. No, the applicant is not liable to pay GST on services. These services are as follows:

(i) Courses approved by the Government of Kerala (Exhibit 1); and

(ii) NCVET-approved courses that are matched with the National Skills Qualification Framework (NSQF), as these meet the conditions prescribed under Entries 66 and 69 of Notification No. 12/2017-Central Tax (Rate), as changed.

b. In respect of services where consideration is received from government agencies or corporates (including CSR funding), no specific exemption notification or supporting evidence has been referenced by the applicant; hence, the Authority is unable to provide a ruling.