GST Advance Ruling: Karnataka AAR Rules No Exemption for Government-Funded Skill Training Programs
GST Advance Ruling: Karnataka AAR Rules No Exemption for Government-Funded Skill Training Programs
The present advance ruling (No. KAR ADRG 25/2025) dated July 28, 2025, has been filed by a company named M/S. Ethnus Consultancy Services Private Limited (Applicant) under Section 97 of the CGST Act, 2017 and Section 97 of the KGST Act, 2017, in form GST ARA-01, discharging the fee of Rs. 5,000 each under the CGST Act and the KGST Act. The company possesses a registered address at Second Floor, No. 151/17/1, SST Chambers, 36th Cross, Jayanagar 5th Block, Bengaluru-560041, with a GSTIN or User ID: 29AACCE5852B1ZS.
The Applicant, M/S. Ethnus Consultancy Services Private Limited is a training and skill development company involved in providing necessary employability skills, certification and placement support to the youth of India.
Questions Asked by Appellant:
The appellant, M/S Cheftalk Food and Hospitality, has asked the following question, seeking the Karnataka Advance Ruling No. KAR ADRG 25/2025, dated July 28, 2025:
“Question 1: As per Notification 12/2017, Sl. No. 72, Chapter 99, Heading 9992 reads, “Services provided to the Central Government, State Government, or Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Government, or Union territory administration” are Nil-rated. Is this applicable to our organisation when it provides services to the Government under any training programme?
Question 2: Whether income earned from the Karnataka Skill Development Corporation by implementing the skill development programme “Kalike Jothege Kaushalya” under the CMKKY scheme of the Govt. of Karnataka results in a taxable supply of services?”
What Did the Ruling Say?
In accordance with the Authority for Advance Ruling in Karnatakа Goods and Services Tax Vanijya Therige Karyalaya, Kalidasa Road, Gandhinagar, Bengaluru – 560009, the following answers have been given to the above questions:
Answer 1: No, as per entry No. 72 of Notification 12/2017-Central Tax (Rate) dated 28.06.2017, exemption is not applicable to the applicant when it provides services to the Government under any training programme.
Answer 2: Yes, income earned from the Karnataka Skill Development Corporation by implementing the skill development programme “Kalike Jothege Kaushalya” under the CMKKY scheme of the Govt. of Karnataka results in a taxable supply of services.