It is a good news for private ITI students as the government has removed GST on those ITI trades (courses) which come under the Apprentice Act 1961.
The students who are entering this trade (course) will not liable to pay any GST on a nominal fee. The Central Board of Direct Taxes (CBDT) has asked to explain this topic to the board.
CBDT has clearly mentioned that any trade under government ITI for professional training does not come under GST ambit. According to sources, many people asked CBIC if professional training from private ITI is imposed with GST.
CBIC has explained this with the reasoning that the private ITI is an educational institution so according to the Apprentice Act 1961, these all mentioned trade providing professional training are exempted from GST. However, private ITI trades which are not mentioned under the act will attract GST.
Actually, the trade in industrial training centres which got accreditation from the National Council For Vocational (NCVT) or ITI under the Apprentice Act will not attract GST. Likewise, private ITI which are mentioned under the act is out of GST scope. SBIC also mentions that even the entrance exams for inviting applicants also do not attract GST on admission fees.
However, the trade which is not mentioned under the Apprentice Act, they will attract GST on the admission fee. According to sources, the government ITI is exempted from GST for all sort of training and services it offers to the student.
The government ITI services also come under government services which do not attract GST. There is no GST levy on the admission fee of the government ITI.