In re Kerala Academy for Skills Excellence (GST AAR Kerala)
The applicant, Kerala Academy for Skills Excellence (KASE), is a Government of Kerala-owned company functioning under the Labour & Skills Department. It was designated as the State Skill Development Mission (SSDM) under the National Skill Development Policy to act as the nodal body for convergence of skilling initiatives. KASE has been authorized to implement national schemes such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and SANKALP. It runs multiple initiatives, including Centres of Excellence, accreditation of skill courses, the Kerala State Institute of Design, Kaushal Kendras, and vocational programmes for other government departments. The applicant states that its objective is skill development, it operates without profit motive, and it holds registrations under the Companies Act and Income-tax Act as a charitable institution.
KASE claims exemption from GST on several grounds. It argues that since its training partners under PMKVY and SANKALP are fully exempt from GST, and since Indian Institute of Infrastructure and Construction (IIIC), one of its training institutes, was earlier held exempt under Entry 66 of Notification No. 12/2017—Central Tax (Rate), it should also receive similar exemption on revenue, including its share of fees from skill partners. It further argues that its courses qualify as vocational courses eligible for exemption under Entry 66. Additionally, KASE asserts eligibility for exemption under the amended Entry 69 of Notification No. 12/2017, which was revised to include NCVET-recognized awarding bodies and assessment bodies. It submits that it is recognized as both awarding and assessing body by NCVET. Alternatively, KASE claims it can be treated as a “governmental authority” engaged in functions under the Eleventh Schedule, making it eligible for exemption under Entries 4 and 5 of Notification No. 12/2017. It finally submits that GST should not apply to its fee receipts, and that if GST is payable, input tax credit (ITC) should be allowable even when payments are made using government grants.
