Case Details: Kerala Academy for Skills Excellence, In re - [2025] 180 taxmann.com 830 (AAR-KERALA)
Judiciary and Counsel Details
- Jomy Jacob & Mansur M.I., Member
-
Udayan C.C., Finance Officer for the Applicant.
Facts of the Case
The applicant, a government entity designated as the State Skill Development Mission under the National Skill Development Schemes, sought an advance ruling on GST applicability. Specifically, the applicant inquired about the tax treatment of the share of fees received from its skill training partners and fees collected directly from students enrolled in its own training institutes. The applicant submitted that its training partners were not approved for the relevant schemes and that its own institutes lacked proof of approved curriculum. The matter was accordingly placed before the AAR.
AAR Held
The AAR held that the share of fees received by the applicant from its skill training partners did not qualify for exemption. Fees collected directly from students by the applicant’s own institutes were also taxable. It was further held that the source of funds, including government grants, does not restrict eligibility for input tax credit (ITC), and ITC cannot be denied solely because expenditure was incurred using grant funds, provided inputs are directly attributable to taxable outward supplies.
List of Cases Reviewed
- Nxtwave Disruptive Technologies (P.) Ltd., In re [2022] 145 taxmann.com 19 (AAR – TELANGANA)
- Interviewbit Software Services (P.) Ltd., In re [2023] 152 taxmann.com 605/99 GST 115/76 GSTL 238 (AAR – KARNATAKA) (para 7.6) followed
- Uralungal Labour Contract Co-op. Society Ltd., In re [2021] 130 taxmann.com 393/88 GST 178/[2022] 57 GSTL 455 (AAR – KERALA) (para 7.9) distinguished
List of Cases Referred to
- Uralungal Labour Contract Co-op. Society Ltd., In re [2021] 130 taxmann.com 393/88 GST 178/[2022] 57 GSTL 455 (AAR – KERALA) (para 4.6)
- Nxtwave Disruptive Technologies (P.) Ltd., In re [2022] 145 taxmann.com 19 (AAR – TELANGANA) (para 7.6)
- Interviewbit Software Services (P.) Ltd., In re [2023] 152 taxmann.com 605/99 GST 115/76 GSTL 238 (AAR – KARNATAKA) (para 7.6).
The post State Skill Development Authority Not Eligible for GST Exemption on Fee Share | AAR appeared first on Taxmann Blog.
