Activities of Tamilnadu Skill Development Corporation are not satisfying the conditions provided in the SI.No. 69 & Sl.No.70 of the Notification No. 12/2017 (CT). Therefore, the supply undertaken by the applicant is liable to GST and subject to the monetary Turnover of the applicant, the applicant is liable to obtain GST Registration.
Levy of GST— Section 7 of CGST Act—In the instant case, applicant is Tamil nadu skill development corporation is registered as a non-profit organization under Section 8 of the Companies act in the year 2013 by the Government of Tamil Nadu with an objective to provide Skill Training Programme for meeting the growing industrial demand for skilled workers.
It receives funds from the Government as grants for conducting various skill Training programmes implemented through registered Training Providers empanelled with Tamil nadu skill development corporation. The Grants received has been disbursed for training providers and transportation cost to the Trainees attending the training.
The applicant has stated that they are similar to NSDC in their constitution, objectives, etc and have claimed that the exemption under Sl. No. 69 8670 of Notification No.12/2017-C.T.(Rate) dated 28.06.2017 is to be extended to them and thereby they be exempted from GST.
Held that— In the instant case the activities of TNSDC are ‘Supply’ as per Section 7(1) and are not excluded under Section 7(2). Further by the definition of business, the intent of ‘profit’ is not necessary for the activity. Also, only the ‘subsidy’ granted by the Government, stands excluded from ‘Consideration’. Therefore, the supply undertaken by the applicant is liable to GST and subject to the monetary Turnover of the applicant, the applicant is liable to obtain GST Registration.
To sum up, the activities of the applicant are ‘Supply’ under Section 7(1) of the GST Act and are not exempted under SI.No. 69 & 70 of the Notification No.12/2017-C.T.(Rate) dated 28.06.2017 and therefore, the applicant is required to be registered under the Act.