In re Uralungal Labour Contract Co-operative Society Ltd (GST AAR Kerala)
In view of the Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, we would like to get clarified as to whether the educational courses which are conducted in Indian Institute of Infrastructure and Construction (IIIC) fall under the taxable service or not?
The Indian Institute of Infrastructure and Construction [IIIC] qualifies to be classified as an educational institution as defined under clause (y) of Paragraph 2 of Notification No. 12/2017 CT (Rate) dated 28.06.2017 and accordingly the courses conducted in the institution are eligible for exemption from GST as per entry at SI No. 66 of the said notification.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KERALA
M/s. Uralungal Labour Contract Co-operative Society Ltd (hereinafter referred to as the applicant or M/s ULCCS) is registered under the Kerala Cooperative Societies Act, 1969 and an accredited agency for Government of Kerala.
2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under.
3. The applicant requested advance ruling on the following;
“In view of the Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, we would like to get clarified as to whether the educational courses which are conducted in Indian Institute of Infrastructure and Construction (IIIC) fall under the taxable service or not?”
4. Contentions of the Applicant:
4.1. The applicant is primarily engaged in construction of roads, bridges and other public infrastructure to Government and other institutions. The applicant entered into an agreement with Kerala Academy for Skills Excellence [KASE], the State Skill Development Mission of the Government of Kerala, under Department of Labour and Skills for setting up and operation of Indian Institute of Infrastructure and Construction [IIIC], Chavara, Kollam.
4.2. The objective of M/s. IIIC is establishing a world class skill centre, as centre of excellence for imparting international quality skill sets to the personnel in construction industry of all cadre right from the labourers to the top management. M/s. IIIC is operated in public private partnership mode, with the basic infrastructure being provided by M/s. KASE and the applicant is the operational partner. M/s. IIIC started functioning in July, 2018 under the guidance of the National Academy of Construction, Hyderabad. The applicant is affiliated by National Skill Development Corporation [NSDC] as training partner for conducting various courses. The Government of Kerala by G.O.(P) No. 95/2019/LBR dated 24.10.2019 of the Labour and Skills Department has declared that Indian Institute of Infrastructure and Construction, Chavara is a Government owned institute and the courses that are being conducted in the institute are approved by the Government.
4.3. In this scenario, the applicant requests clarification, whether the educational courses which are conducted in M/s. IIIC will fall under the taxable service or not in accordance with the provision of the GST Act and Rules.
5. Comments of the Jurisdictional Officer:
5.1. The jurisdictional officer submitted that the question raised by the applicant for advance ruling is that whether the educational courses which are conducted in IIIC falls under the taxable service or not. On going through the application, it is assumed that, the applicant is seeking advance ruling placing their service under the entry at SI No. 69 of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017. The relevant entry is reproduced below: –
