In re Sisinty Private Limited (GST AAR Karnataka)
In a recent decision, the Karnataka Authority for Advance Ruling (AAR) addressed the Goods and Services Tax (GST) implications for skill development services offered by M/s. Sisinty Private Limited. The company, an online upskilling platform, sought clarification on the tax rate applicable to its training programs conducted in collaboration with the National Skill Development Corporation (NSDC). Sisinty Private Limited operates as an approved training partner under the NSDC’s “Market Led Fee-Based Services” scheme, a framework designed to provide standardized training in high-growth sectors. The central question before the AAR was whether these services were eligible for a GST exemption under existing notifications.
The applicant argued that its services were exempt from GST under Entry No. 69 of Notification No. 12/2017-Central Tax (Rate). This notification outlines that any service provided by a training partner approved by the NSDC, in relation to a scheme implemented by the NSDC, is subject to a Nil GST rate. The company contended that it met two primary conditions for this exemption: it was an approved training partner of the NSDC, and the training was part of a scheme implemented by the NSDC. The “Market Led Fee-Based Services” scheme was presented as the relevant program, and the company provided documentation, including a certificate of approval from the NSDC, to support its claim.
