In re Tamilnadu Skill Development Corporation (GST AAR Tamil Nadu)
Tamilnadu Skill Development Corporation is not exempted vide entry Sl.No. 69 and Sl.No.70 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 and therefore, they are required to be registered under the CGST/TNGST Act 2017.
Read AAAR Order: AAAR cannot examine ground not raised before AAR
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMIL NADU
Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
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M/S. Tamil Nadu Skill development Corporation, Alandur Road, Thiru Vi. Ka Industrial Estate, Guindy, chennai 600 032. (hereinafter called the ‘Applicant’ or TNSDC) is an unregistered applicant. They have sought Advance Ruling on the following question:-
Whether the applicant is required to be registered under this Act?
The Applicant has submitted the copy of application in Form CST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant has stated that, Tamil Nadu Skill Development Corporation was registered as a non-profit under Section 8 Company under Companies act in the year 2013 by the Government of Tamil Nadu with an objective to provide Skill Training Programme for meeting the growing industrial demand for skilled workers.
They receive funds from the Government as grants for conducting various skill Training programme implemented through registered Training Providers empanelled with Tamil Nadu Skill Development Corporation. The Grants received has been disbursed for training providers and transportation cost to the Trainees attending the training. Hence, the Tamil Nadu Skill Development Corporation is a non-Profit Section 8 company and not doing any profit mobilizing activities. They submitted that the TNSDC may be exempted from paying the GST.
2.2 The applicant has stated that National Skill Development Corporation has been registered under the Act similarly State Government has formed this corporation for giving training to unemployed youth. Hence have stated that they be exempted vide Sl. No. 69(SAC 9992 or 9983) and Sl.No. 70 (SAC 9985). They had furnished the Certificate of Incorporation, G.O.(Ms.) No. 150 dated 11.06.2013 and copy of the Memorandum of Association and Articles of Association approved by the Government of Tamilnadu.
3.1 The applicant was given an opportunity to be virtually heard on 13.08.2020. The authorized representative appeared for virtual hearing. They stated that they undertake NSDC aligned courses, funded by State Government. The applicant was asked to give a write up on the courses, balance sheet and trail of accounts in respect of the courses conducted. They were asked to elaborate as to how their activities fall under Sl. No. 69 & 70 of the notification under which the exemption is claimed. – Another hearing was agreed to be extended after they make their submissions.
3.2 The applicant vide their reference RC.No. 543/SDC-A/2020 dated 17.08.2020 furnished the details of the programmes they are involved with, Balance Sheet for the year 2018-2019, Activity process & Trail of Accounts and Justification for exempting from GST under Sl.No. 69 of theNotification No. 12/2017-C.T.(Rate) dated 28.06.2017 . The same are as under:
> STATE SKILL DEVELOPMENT Programme:-
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