No GST on training students sponsored by central or state governments
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The M/s Sachdeva College Ltd. (applicant) provides education approached Haryana Authority of Advance Ruling (AAR) regarding the applicability of the Goods and Services Tax (GST) providing training to students sponsored by central or state governments. The term education is not defined under the Central GST (CGST) Act. However, the Apex court held that education is training and developing students’ knowledge, skill, and character by normal schooling in Loka Shiksha Trust vs CIT.

To obtain further clarity and determine the GST applicability, the applicant sought the advance ruling to determine the liability to pay GST on training to students at the direction of the Directorate of the Welfare of Scheduled Castes (SC) and Backward Classes (BC) Department, Haryana. The total expenditure for the training programme is borne by the State Government of Haryana, which implements three types of schemes, i.e. state scheme, sharing basis, centrally sponsored scheme.

The applicant asked AAR whether GST exemption under entry no. 72 of the Excise & Taxation Department of Haryana Government dated 30th June 2017 can be applied to students’ training by applicant. The applicant has further asked whether the applicant is liable to be registered under the State of Haryana under IGST/CGST given the facts and circumstances of the present case.

The AAR observed that the Department of the Welfare of SC and BC, Haryana, implemented the training through the three schemes mentioned above. As a result, the beneficiary will receive the scholarship or monetary relief or grant directly to the Aadhaar enabled bank account. Therefore, the AAR ruled that the applicant is not liable to pay GST in this scenario.

The AAR ruled that any person engaged exclusively in supplying goods or services or are not liable to tax or fully exempt from GST is not required to register under the Centra GST Act or the Integrated GST Act.

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