GST Applicability on Services by Industrial Training Institutes (ITIs): Key Insights from Circular No. 55/29/2018-GST
<h2><span><strong>Key Clarifications on GST for ITIs</strong></span></h2><h3><span><strong>1. GST on Vocational Training by Private ITIs</strong></span></h3><ul><li><span>Private ITIs qualify as <strong>educational institutions</strong> under <strong>Notification No. 12/2017-CT(Rate), Para 2(y)</strong> if they provide <strong>approved vocational educational courses</strong>.</span></li><li><span>Approved vocational courses include:</span><ul><li><span><strong>Courses in designated trades notified under the Apprenticeship Act, 1961</strong>, offered by ITIs affiliated with <strong>NCVT (National Council for Vocational Training)</strong> or <strong>SCVT (State Council for Vocational Training)</strong>.</span></li><li><span><strong>Modular employable skill courses</strong> approved by <strong>NCVT</strong> and run by entities registered with the <strong>Directorate General of Training (DGT), Ministry of Skill Development</strong>.</span></li></ul></li><li><span><strong>GST Exemption</strong>:</span><ul><li><span><strong>Vocational training in designated trades</strong> is <strong>exempt from GST</strong> under <strong>Sr. No. 66 of Notification No. 12/2017-CT(Rate)</strong>.</span></li><li><span><strong>Vocational training in non-designated trades is taxable under GST</strong> and does not qualify for exemption.</span></li></ul></li></ul><h3><span><strong>2. GST on Examination & Admission Services by Private ITIs</strong></span></h3><ul><li><span>If an <strong>ITI offers training in designated trades</strong>, the following services are <strong>exempt from GST</strong>:</span><ul><li><span><strong>Entrance examinations</strong> conducted for admission (<strong>Entry (aa) under Sr. No. 66 of Notification No. 12/2017-CT(Rate)</strong>).</span></li><li><span><strong>Admission-related services and conduct of exams</strong> (<strong>Entry (b(iv)) under Sr. No. 66 of Notification No. 12/2017-CT(Rate)</strong>).</span></li></ul></li><li><span><strong>Non-Exempt Services</strong>:</span><ul><li><span>If the ITI provides training in <strong>non-designated trades</strong>, <strong>GST is applicable</strong> on services related to:</span><ul><li><span>Conduct of <strong>entrance examinations</strong>.</span></li><li><span>Services related to <strong>admissions and examination processes</strong>.</span></li></ul></li></ul></li></ul><h3><span><strong>3. GST on Services Provided by Government ITIs</strong></span></h3><ul><li><span><strong>Government ITIs</strong> provide training and examination services as part of <strong>government-run initiatives</strong>.</span></li><li><span>These services qualify for <strong>GST exemption under Sr. No. 6 of Notification No. 12/2017-CT(R)</strong> as they are considered services <strong>provided by the Central or State Government to individuals</strong>.</span></li><li><span><strong>Exempt services for Government ITIs</strong>:</span><ul><li><span><strong>Vocational training in all trades</strong>.</span></li><li><span><strong>Examination-related services</strong>.</span></li></ul></li></ul><h3><span><strong>Impact on ITIs and Students</strong></span></h3><ul><li><span><strong>Private ITIs offering designated trade courses</strong> enjoy <strong>GST exemptions</strong>, making vocational training <strong>more affordable</strong>.</span></li><li><span><strong>Private ITIs with non-designated trade courses</strong> must <strong>charge GST on fees</strong>, potentially increasing costs for students.</span></li><li><p><span><strong>Government ITIs</strong> continue to provide <strong>GST-exempt services</strong>, ensuring <strong>affordable skill development</strong>.</span></p><p><a href="https://cms.plasament.com/storage/shubham-pathak/circularno-55-gst.pdf">circularno-55-gst</a><br> </p></li></ul>