In re Information and Communication Technology Academy of Kerala (GST AAR Kerala)
The applicant, Information and Communication Technology Academy of Kerala (ICTAK), is a private limited company engaged in skill development, capacity building and employability enhancement initiatives through training programmes and large-scale projects. ICTAK sought an advance ruling on (i) whether services provided to the Kerala Development and Innovation Strategic Council (K-DISC) are exempt from GST under Entry 72 of Notification No. 12/2017-Central Tax (Rate), and (ii) whether ICTAK is eligible to claim input tax credit (ITC) on GST charged by subcontractors on works directly related to such supplies. ICTAK stated that around half of its services are rendered to K-DISC under various MoUs, with invoices raised and payments received directly from K-DISC. ICTAK submitted that K-DISC has clarified that it is a Government Department and cited its governing structure, State budget funding, full governmental control, performance of State functions, and a letter stating integration with department workings. ICTAK also stated that the services are provided under Government-funded schemes and therefore qualify for exemption. Regarding ITC, ICTAK contended that subcontractors’ services should also be exempt but since they charge GST, ICTAK should be eligible to claim ITC under Section 16(1).
