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TMI Blog2021 (8) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-Central Tax (Rate) dated 28-06-2017, we would like to get clarified as to whether the educational courses which are conducted in Indian Institute of Infrastructure and Construction (IIIC) fall under the taxable service or not?" 4. Contentions of the Applicant: 4.1. The applicant is primarily engaged in construction of roads, bridges and other public infrastructure to Government and other institutions. The applicant entered into an agreement with Kerala Academy for Skills Excellence [KASE], the State Skill Development Mission of the Government of Kerala, under Department of Labour and Skills for setting up and operation of Indian Institute of Infrastructure and Construction [IIIC], Chavara, Kollam. 4.2. The objective of M/s. IIIC is establishing a world class skill centre, as centre of excellence for imparting international quality skill sets to the personnel in construction industry of all cadre right from the labourers to the top management. M/s. IIIC is operated in public private partnership mode, with the basic infrastructure being provided by M/s. KASE and the applicant is the operational partner. M/s. IIIC started functioning in July, 2018 under the guidance of the Nation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... schools (P) Ltd was considered by the Maharashtra Authority for Advance Ruling [Order No.GST-ARA-37/2017-18/B-44 dated 05-06-2018] and the Maharashtra Appellate Authority for Advance Ruling [Order No MAH/AAAR/SS-RJ/19/2019-19 dated 04-02-2019] and found that National Skill Development Programme would cover only the actual schemes and programmes that are undertaken by the Government through its various ministries, departments, directorates, attached offices and organizers and cannot in anyway be construed to be including each and every one under the sun which enhances skills in one way or other. 5.3. In the circumstances, the educational courses which are conducted in IIIC by the applicant fall under NIL rated category only when the applicant produces satisfactory evidence to show that, the applicant is a training partner approved by the National Skill Development Corporation and the services provided by the applicant are in relation to either of the items listed under clause (i) to (iii) to the entry at Sl. No. 69 of the Notification No.12/2017 Central Tax (Rate) dated 28-06-2017. 6. Personal Hearing: The applicant was granted opportunity for personal hearing on 05.01.2021. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e training partner affiliated to the National Skill Development Corporation and accordingly the courses conducted at IIIC are exempted as per entry at Sl No. 69 of the Notification No. 12/2017 CT reproduced below; Sl.No. Chapter, Section, Heading, Group or Service code (Tariff) Description of services Rate (per cent) Condition 69 Heading 9992 or Heading 9983 Heading 9991 Any services provided by- (a) the National Skill Development Corporation set up by the or Government of India (b)a Sector Skill Council approved by the National Skill Development Corporation (c) an assessment agency approved by the Sector Skill Council or the National skill Development Corporation (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to:- (I) the National Skill Development Programme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation Nil 7.4. On a plain reading of the above entry it is evident t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny of the specified categories. On the basis of the discussion above, we conclude that the courses conducted at IIIC are not eligible for exemption as per entry at S1 No. 69 of the Notification No. 12/2017 CT (Rate) dated 28-06-2017. 8. The second contention is that the courses conducted by IIIC are approved by the Government of Kerala. The relevant entry at 51 No. 66 of the Notification No. 12/2017 CT (Rate) dated 28-06-2017 is reproduced as follows; Sl.No Chapter, Section, Heading, Group or Service code Description of Services Rate (per cent) Condition 66 Heading 9992 Services provided (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee (b) to an educational institution, by way of- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use (ii) of clause (y) of Para 2 of the said notification to qualify as an educational institution. As per sub-clause (ii) ibid, institutions providing services by way of education as a part of curriculum for obtaining a qualification recognized by any law for the time being in force is covered by the definition of "educational institution". Therefore, it is to be examined whether the services provided by the applicant is education as a part of curriculum for obtaining a qualification recognized by any law. 8.4. The term "educational institution" under sub-clause (ii) covers institutions providing services by way of education as a part of curriculum for obtaining a qualification recognised by any law for the time being in force. The conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications recognized by law would be covered. Now it is to be examined, whether the courses conducted by IIIC lead to grant of qualification recognised by law. 8.5. The applicant has produced the documents as listed in Para 6 above in support of their contention that the courses are recognised by law. As per G.O.(MS) No. 13/2012/ LBR dated 21.01.2012 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Infrastructure & Construction - Orders issued. LABOUR & SKILLS (C) DEPARTMENT G.O.(P) No. 95/2019/LBR Dated, Thiruvananthapuram, 24/10/2019 Read 1. G.O.(MS) No. 13/2012/ LBR dated 21.01.2012. 2. G.0. (MS) No. 20/2012/ LBR dated 03.02.2012. 3. G.O.(P) No. 47/2018/Labour dated 28.05.2018. 4. Letter No. KASE-1993/2018-I dated 27.05.2019 from the Managing Director, KASE. ORDER "As per the Government Order read as 1st paper above, an academy was set up in Chavara, Kollam, which was later named as Indian Institute of Infrastructure & Construction (IIIC), to cater to the skilling needs of the construction sector. As per the Government Order read as 2nd paper above, Kerala Academy for Skills Excellence (KASE) was set up as an apex entity to initiate, regulate & co-ordinate focused skill development in various industrial domains and consequently, IIIC was brought under the overall supervision of KASE. 2) IIIC, Chavara is operated in Public Private Partnership mode, with the basic infrastructure being provided by KASE and M/s Uralungal Labour Contract Co - Operative Society (ULCCS) Ltd is being selected as the operational partner vide an agreement signed between the tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owned institute and the approval of the courses conducted by IIIC by the Government of Kerala, IIIC has attained the status of an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognized by law. Consequently, IIIC qualifies to be classified as an educational institution as defined under sub-clause (ii) of clause (y) of Paragraph 2 of the Notification No. 12/2017 CT (Rate) dated 28.06.2017. Therefore, the courses conducted in Indian Institute of Infrastructure and Construction is exempted from GST as per entry at Si No. 66 of Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017. In view of the observations stated above, the following ruling is issued; RULING "In view of the Notification No.12/2017-Central Tax (Rate) dated 28-06-2017, we would like to get clarified as to whether the educational courses which are conducted in Indian Institute of Infrastructure and Construction (IIIC) fall under the taxable service or not?" The Indian Institute of Infrastructure and Construction [IIIC] qualifies to be classified as an educational institution as defined under clause (y) of Paragraph 2 of Notification No. 12/2017 CT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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