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Applicability of GST on Skill Development, Start-Ups and Tourism

The Ministry of Finance has explained the applicability of Goods and Services Tax (GST) on Skill Development, Start-Ups, and Tourism etc. All kinds of representations received from the trade and industry (including start-ups) regarding GST rates on services have been deliberated in the Fitment Committee.
The government has exempted various kinds of services in relation to skill development. Decision pertaining to rates of GST and exemption on skill development, start-ups, and tourism is taken after due deliberation in GST Council. There are several services which have been exempt from GST. The details are as given below.
Exemptions in relation to Skill development and start-ups

Taxable services, provided or to be provided, by a Technology Business Incubator or a Science and Technology Entrepreneurship Park recognised by the National Science and Technology Entrepreneurship Development Board of the Department of Science and Technology, Government of India or bio-incubators recognised by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India.

Any services provided by, (a) the National Skill Development Corporation set up by the Government of India; (b) a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-

Services of assessing bodies empaneled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under the Skill Development Initiative Scheme is exempt from GST. Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana implemented by the Ministry of Rural Development, Government of India by way of offering the skill or vocational training courses certified by the National Council for Vocational Training are exempt from GST.

Services 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 administration.

Exemptions in relation to Tourism

Services by a specified organization in respect of a religious pilgrimage facilitated by the Government of India, under the bilateral arrangement is exempt. Further, the supply of tour operators services attracts the concessional rate of GST @ 5%, subject to fulfillment of specified conditions.

Minister of Finance

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