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

• Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:
  • the total turnover had not exceeded fifty lakh rupees during the preceding financial year;
  • and a period of three years has not elapsed from the date of entering into an agreement as an incubatee.

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-

• the National Skill Development Programme implemented by the National Skill Development Corporation; or a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or
• any other Scheme implemented by the National Skill Development Corporation.

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.