GST Exemption to Maritime Training Institutes

GST Exemption to Maritime Training Institutes

GST Exemption to Maritime Training Institutes

As per the circular from the Ministry of Finance on 11th October 2019, the applicability of GST exemption is extended to Maritime Training Institutes. The exemption to all the educational institution is applicable as per GST Law, vide Sl. No. 66 of the notification No.12/2017 – Central Tax (Rate) dated 28.06.2017. Now, it is clarified and applied to Maritime educational Institutes as well for the approved maritime courses under the Circular No.117/36/2019-GST. The Directorate of Shipping will disseminate the information to the institutes and monitor the programs.

GST exemption on services by educational institutions will be available when the institute follows the guidelines for the curriculum to provide a qualification/degree recognised by law. As per the definition of GST, the meaning of “educational institution” means an institution should provide the services of:

  • pre-school education and education up to higher secondary school or equivalent
  • education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force
  • education as a part of an approved vocational education course

The earlier notification on “Educational Institutes” is provided below. The Educational Institutes should adhere to the policies mentioned in the below PDF. (S.No.66 of page 22)

Notification_12-CGST_Educational Institutes

The Maritime Educational Institutions are entitled to follow the Merchant Shipping Act, 1958. The Merchant Shipping Act guides the shipping agencies for monitoring the ships entering or leaving any of the Indian shores. Also, it provides authority to the officers who are duly certified through Maritime educational institutes. Section 79 of the Merchant Shipping Act provides that the Central Government or a person duly authorised by it shall appoint persons for examining the qualifications of persons desirous of obtaining a certificate of competency under Section 78 of the Act.

To streamline and monitor the maritime education and training offered by maritime institutes, and to administer the assessment agencies, the Merchant Shipping Rules, 2014 has been notified. Under Rule 9 of the rules, the Director-General of Shipping is empowered to authorise the educational institutes and assessment centres. Also, the Director-General of Shipping can approve (i) the training course, (ii) training, examination and assessment programme, and (iii) approved training institute etc.

As per above, it is seen that the Maritime Training Institutes can avail exemption of GST under the following conditions:

  • The Maritime Training Institutes should have the approval of Director-General of Shipping
  • The courses conducted should have the approval of Director-General of Shipping

The Institutes should also follow the below guidelines:

  • Transportation of students and faculty
  • Catering including mid-day meals
  • Security services or cleaning or house-keeping services performed in such educational institution;
  • Services like the conduct of examination and evaluation

The applicability to the maritime institutions on exemption of GST is specifically notified, and the same notification can be found below:

GST Exemption to Maritime Educational Institutes

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