Page 124 - GSTL_26th March 2020_Vol 34_Part 4

634 GST LAW TIMES [ Vol. 34
(b) a Sector Skill Council (SSC) approved by the NSDC, (c) an assessment agency
approved by the SSC or NSDC, (d) a training partner approved by NSDC or SSC;
in relation to (i) National Skill Development Programme implemented by NSDC,
or (ii) a vocational skill development course under the National Skill Certifica-
tion and Monetary Reward Scheme; or (iii) any other scheme implemented by
NSDC.
5.6 In the instant case, the tender has been called by Maharashtra State
Skill Development Society, Skill Development and Entrepreneurship Depart-
ment, Government of Maharashtra which is neither NSDC nor a SSC. The tender
was meant for empanelment of “Training Providers”. The applicant has not fur-
nished any documentary evidence so as to arrive at whether the main contractor
qualifies to be a training partner, approved by either NSDC or SSC, or not. Fur-
ther the training providers are not entitled for exemption under the Entry No. 69.
Therefore the main contractor, in case if they get the said work, would not be
entitled for exemption under this entry for the said work.
5.7 Now we proceed to examine the entitlement of exemption to the
main contractor under Entry No. 72, of Notification No. 12/2017-Central Tax
(Rate), dated 28-6-2017, which exempts the services, covered under Service Code
9992, provided to the Central Government, State Government, Union Territory
Administration under any training programme for which total expenditure is
borne by the Central Government, State Government, Union Territory Admin-
istration. In the instant case, the main contractor, if they get the work, would be
providing service, of training for Recognition of Prior Learning (RPL) to con-
struction workers, to the Government of Maharashtra, for which total expendi-
ture is to be borne by the Government of Maharashtra. Therefore the main con-
tractor would be eligible for exemption under Entry No. 72 of the said notifica-
tion, subject to fulfilment of the aforesaid conditions.
5.8 The last issue before us to examine is whether the aforesaid exemp-
tion that is applicable to the main contractor is applicable to the applicant or not.
The conditions for the entitlement of the said exemption are as under :
(a) The services must be related to/under any training programme.
(b) The services must be provided to the Central Government, State
Government, Union Territory Administration.
(c) The total expenditure for the said training programme must be
borne by Central Government, State Government, Union Territory
Administration.
In the instant case though the services to be provided by the applicant would be
under training programme for Recognition of Prior Learning (RPL) to construc-
tion workers, the services would be provided to the Main Contractor i.e. the re-
cipient of the services would be the main contractor, but not the State Govern-
ment. Therefore the required conditions are not fulfilled and hence the applicant
is not entitled for exemption under Entry No. 72 of Notification No. 12/2017-
Central Tax (Rate), dated 28-6-2017. Thus, the services to be provided by the ap-
plicant are taxable at 18% IGST or 9% each of CGST & KGST.
6. In view of the foregoing, we pass the following :
RULING
7. The rate of 18% GST is applicable on services to be provided under
sub-contract to main contractor, who in turn provides to M/s. Maharashtra State

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