The Haryana Authority of Advanced Ruling, on Monday, ruled that no GST shall be applicable on delivering training to those students who are sponsored by the central or state government.
Here in this case the applicant is Messrs Sachdeva College Ltd which is engaged in the domain of providing Education. And interestingly the aforesaid education is not mentioned under the GST Act 2017. However, in a similar case Shiksha Trust vs. CIT, Education the apex court of the country the Supreme Court of India, has held that it is the affair of imparting “training in knowledge, character and skill development of students by the normal schooling.”
The applicant was seeking an advance ruling on this issue with reference to determining the liability to pay GST/IGST on the order of the Directorate of the welfare of Scheduled caste and Backward Classes Department, Haryana. The expenditure of the aforesaid training program is to be born by the state Government of Haryana. The said government implements three types of schemes viz
- State Scheme
- Sharing basis
- 100% Centrally Sponsered Scheme
In the light of Entry Number 72 of the Haryana Government Excise and Taxation Department Notification that is date June 30, 2017. The question is whether Entry 72 grants exemption of the GST on providing training to students by the petitioner.
Furthermore, the applicant has questioned the AAR that whether he is liable to get registered in view of the prevailing facts and circumstances of the issue.
“The Coram of Vidhya Sagar and Rachana Singh observed that the Department of the welfare of Scheduled Classes and Backward classes,” Haryana delivers three types of training programs and it has been held that no GST is to be paid in such schemes in which the grant or monetary relief or scholarship is delivered through the Aadhar Enable account or in the bank account. So the applicant is not liable for the registration until the goods and services or both are not liable to tax or in other words fully exempt from the tax as per the GST Act 2017.
