Taxability of services provided by Industrial Training Institutes (ITI) Goods and Services Tax

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Services provided by a private ITI in respect of designated trades notified under Apprenticeship Act, 1961 are exempt from GST under  No. 66 of notification No. 12/2017-CT(Rate). As corollary, services provided by a private ITI in respect of other than designated trades would be liable to pay GST and are not exempt.

It is clarified that in case of designated trades, services provided by a private ITI by way of conduct of entrance examination against consideration in the form of entrance fee will also be exempt from GST [Entry (aa) under  No. 66 of notification No. 12/2017-CT(Rate)refers]. Further, in respect of such designated trades, services provided to an educational institution, by way of, services relating to admission to or conduct of examination by a private ITI will also be exempt [Entry (b(iv)) under Sr. No. 66 of notification No. 12/2017-CT(Rate) refers]. It is further clarified that in case of other than designated trades in private ITIs, GST shall be payable on the service of conduct of examination against consideration in the form of entrance fee and also on the services relating to admission to or conduct of examination by such institutions, as these services are not covered by the exemption ibid.

As far as Government ITIs are concerned, services provided by a Government ITI to individual trainees/students, is exempt under  No. 6 of 12/2017-CT(R) dated 28.06.2017as these are in the nature of services provided by the Central or State Government to individuals. Such exemption in relation to services provided by Government ITI would cover both – vocational training and examinations conducted by these Government ITIs.

Read More at:http://www.cbic.gov.in/resources//htdocs-cbec/gst/Signed_Circular_on_Taxability_of_services_provided_by_Industrial_Training_Institutes.pdf;jsessionid=ACAF0325B098E1FB5AC0AC7D6553890B

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