It was specified by the Central Board of Indirect Taxes and Customs (CBIC), vide circular no. 234/28/2024-GST dated 11 October 2024 that Goods and Services Tax (GST) is waived on approved flying training courses mandated by the Directorate General of Civil Aviation (DGCA) for the issuance of completion certificates.
Various representations for the GST applicability were there on these specialized training programs that the Flying Training Organizations (FTOs) conducted.
Under the GST Act, services that the educational institutions furnish before students, faculty, and staff are not been liable for GST, as summarized in Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. The notification describes an “educational institution” as an entity that provides services within a curriculum that culminates in qualifications acknowledged by existing laws.
Under the Aircraft Act of 1934 and its subsequent rules the act controlling training is been made. Under the same act, the central government’s practising powers formulated the Aircraft Rules of 1937 which specifies the need for approved training companies. The same law mentions that only DGCA-approved FTOs can register students to acquire the essential flying experience for private pilot and commercial pilot licenses.
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Also, Civil Aviation needs information on the process for furnishing the completion certificates to students who complete the training courses at these approved companies.
Therefore, the clarification from the CBIC indicates that flying training programs approved by DGCA-recognized FTOs fall under the exemption specified in the previously mentioned GST notification. This implies that the training courses vital for prospective pilots will be exempt from GST.
The circular mentions that “… Therefore, the approved flying training courses conducted by FTOs approved by DGCA, wherein the DGCA mandates the requirement of a completion certificate, are covered under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and are hence, exempt.”
