Maritime courses conducted by Maritime Institutes are educational Institution, Hence exempt from GST

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Background:

In terms of Sl. No. 66 of the Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017, any services provided by an educational institutions to its students, faculty, and staff are exempt from levy of GST, if it fulfills the criteria that the education is provided as part of a curriculum for obtaining a qualification/ degree recognized by law under GST Law.

In the aforesaid notification the terms “educational institution” have been defined, which means an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.

The Maritime Training Institutes and their training courses are approved by the Director General of Shipping which are duly recognized under the provisions of the Merchant Shipping Act, 1958 read with the Merchant Shipping (standards of training, certification, and watch-keeping for Seafarers) Rules, 2014 are educational institutions under GST Law and the courses conducted by them are exempt from levy of GST. The exemption is subject to meeting the conditions specified at Sl. No. 66 of the notification No. 12/ 2017- Central Tax (Rate) dated June 28, 2017.

Clarification:

The CBIC vide Circular No. 117/36/2019- GST dated October 11, 2019, has clarified as under:

  • The Maritime Institutes are educational institutions under GST Law and the courses conducted by them are exempt from levy of GST. The exemption is subject to meeting the conditions specified at Sl. No. 66 of the notification No. 12/ 2017- Central Tax (Rate) dated June 28, 2017.
  • The aforesaid clarification applies, mutatis mutandis, to corresponding entries of respective IGST, UTGST, SGST exemption notifications.