EXEMPTION FROM GST

In re ‘The Leprosy Mission Trust India Bill Edgar Memorial Vocational Centre’ – 2020 (7) TMI 142 – Authority for Advance Ruling, West Bengal, (decided on 29.06.2020) the applicant is registered under section 12A of the Income Tax Act 1961. It is a Non-Governmental Organization which, among others, administers a Vocational Training Institute at Bankura named Bill Edgar Memorial Vocational Training Centre primarily for skill development of the underprivileged suffering from leprosy.   The applicant wants to know whether the service of providing vocational training courses at its Vocational Training Centre, Bankura is exempt under entry no 64 or 66 of Notification 12/2017 - Central Tax (Rate) dated 28/06/2017.

                         The Authority for Advance Ruling held that the applicant is not the Government or local authority. Entry No. 64 of the Exemption Notification is not, therefore, applicable.  Clause h(ii) of the Exemption Notification defines an “approved vocational course” as a modular employable skill course, approved by NCVT and run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. The applicant is registered with DGET and its courses on formal trade skills of diesel mechanic, welder and sewing technology are approved by NCVT. It is, therefore, imparting education as a part approved vocational education courses.  The applicant is, therefore, an educational institution in terms of clause 2(y)(iii) of the Exemption Notification, and its supplies to the students, faculty and staff relating to the courses imparting skills of diesel mechanic, welder and sewing technology are exempt in terms of Entry 66 (a) of the Exemption Notification.