The private industrial training institutes qualify as an educational institute as defined under para 2(y) of Notification 12/2017- CT(R ) if the education provided by such ITI is approved as vocational educational courses has been defined in para 2(h) of notification ibid to mean a course run by ITI or industrial training centre affiliated with NCVT (National council for Vocational Training) or SCVT (State Council for Vocational Training) offering courses in designated trade notified under the Apprenticeship Act, 1961 or modular employable skill course approved by NCVT run by a person registered with DG Training in ministry of skill development.
Therefore the service provide by private ITI registered under apprenticeship Act, 1961 are exempt from GST under Sr No.66 of Notification 12/2017. As result, services by private ITI in respect of other than designated trades would be liable to pay GST and are not exempt.
In case of designated trades, services provided by a private ITI by way of conduct of entrance exams against consideration in the form of entrance fee will also be exempt from GST {Entry (aa) Sr. No.66 of Notification 12/2017}. Further in respect of such designated trades, services trades provided to an educational institution by way of services relating to admission to or conduct of exams by private ITI will also be exempt.
In case of other than designated trades in private ITI, GST shall be payable on service of conduct of exams against considerations and also on services relating to admission to or conduct of exams by such institution as the services are not covered by exemption ibid
As far as Govt ITI’s are concerned , Service provided by a Govt. ITI to Individual trainees/student are exempt since these is in the nature of service provided by CG or SG to individuals (vocational training and exams conducted both are covered hereunder).
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