In re Additional Skill Acquisition Programme Kerala (GST AAR Kerala)
Kerala AAR Classifies Skill Training, Grants GST Exemption for Government-Approved and NCVET Courses
In a recent advance ruling, the Goods and Services Tax (GST) Authority for Advance Ruling (AAR) in Kerala has provided clarity on the classification and taxability of educational and vocational training services offered by the Additional Skill Acquisition Programme Kerala (ASAPK). The ruling, In re Additional Skill Acquisition Programme Kerala, addresses the applicability of exemptions under Notification No. 12/2017-CT(Rate), specifically Entries 4, 66, and 69, for services provided by the state-owned company.
ASAPK, an undertaking of the Higher Education Department, Government of Kerala, incorporated as a Section 8 company in 2021, aims to enhance youth employability through various skill development and vocational training programs. It designs courses, conducts examinations, issues certifications, and delivers training through accredited agencies, collecting fees from students and disbursing service charges. The company also operates Centers of Excellence in advanced technologies and is empanelled by the State Government as a Professional Skill Training Agency for the Four-Year Under Graduate Program (FYUGP).
This ruling stemmed from a fresh application by ASAPK, citing a material change in law—specifically, the amendment via Notification No. 08/2024-CT(Rate) (effective October 10, 2024), which expanded Entry 69 to exempt services provided by National Council for Vocational Education and Training (NCVET)-recognized Awarding Bodies, Assessment Agencies, and Training Bodies accredited with such Awarding Bodies for specified skill programs. This was crucial as a previous AAR ruling (AAR No. KER/28/2023 dated October 6, 2023) had denied ASAPK’s claim for GST exemption, stating it did not qualify as an “educational institution.” The applicant also highlighted its State recognition for training courses, MoUs with universities, and receipt of fees from organizations under Corporate Social Responsibility (CSR) initiatives.
