Cae Simulation Training Private Limited Vs Commissioner of CGST Greater Noida (Allahabad High Court)
The Allahabad High Court has set aside the orders of the Appellate Authority for Advance Ruling (AAAR) and the Authority for Advance Ruling (AAR) concerning the applicability of the Goods and Services Tax (GST) on commercial pilot training services provided by CAE Simulation Training Private Limited. The Court remitted the matter back to the AAR for fresh consideration in light of a subsequent clarifying circular issued by the Ministry of Finance.
The Core Issue
CAE Simulation Training Private Limited, a DGCA (Director General Civil Aviation) Approved Training Organisation (ATO), provides education and training—including ground school and simulator training—to commercial pilots for the extension of Aircraft Type Ratings (ATRs) on their existing licenses.
The company sought an Advance Ruling on whether these services are exempt from GST under Serial No. 66(a) of Notification No. 12/2017-Central Tax (Rate). This notification exempts services provided by an “educational institution” to its students, faculty, and staff, where an “educational institution” is defined as one providing education as part of a curriculum for obtaining a “qualification recognized by any law.”
The AAR and AAAR had initially denied the exemption, holding that the petitioner did not fall under the definition of an ‘educational institution’ under the notification.
