In re Kalvi Career Education Pvt. Ltd. (GST AAR Karnataka)
The Authority for Advance Ruling (AAR) in Karnataka has ruled in favor of M/s. Kalvi Career Education Private Limited regarding the GST exemption on its training services. Kalvi Career Education sought clarification on whether its services, provided under the “Market led Fee-based Services Scheme” implemented by the National Skill Development Corporation (NSDC), are exempt from GST. The company’s services involve providing certification programs in the IT/ITeS sector to help students become more employable. These services are delivered either at its own campus or in partnership with universities.
The AAR examined the case based on Entry No. 69 of Notification No. 12/2017-Central Tax (Rate), which provides a GST exemption for services offered by a training partner approved by the NSDC under one of its schemes. The committee confirmed that Kalvi Career Education fulfilled both key conditions for this exemption: it is an approved NSDC training partner, and the services are related to the “Market led Fee-based Services Scheme.” While an Assistant Commissioner had initially raised concerns about the transactions involving partner universities, the AAR clarified that the definition of “consideration” under the GST Act is broad enough to include payments made by a third party, such as a university, on behalf of the student. Therefore, the services remained eligible for the exemption regardless of whether the payment came directly from the student or through a partner university.
