Central Tax Circulars

CGST Circular 117/2019

To:

The Principal Chief Commissioners/ Chief Commissioners/ Principal
Commissioners/ Commissioner of Central Tax (All) /

The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject: Clarification on applicability of GST exemption to the DG Shipping approved
maritime courses conducted by Maritime Training Institutes of India – reg.

1) A representation has been received regarding applicability of GST exemption to
the Directorate General of Shipping approved maritime courses conducted by the
Maritime Training Institutes of India. The same has been examined and following
is clarified.

2) Under GST Law, vide Sl. No. 66 of the notification No. 12/2017- Central Tax
(Rate) dated 28.06.2017, services provided by educational institutions to
its students, faculty and staff are exempt from levy of GST. In the above
notification, “educational institution” has been defined to mean an institution
providing services by way of education as a part of a curriculum for obtaining
a qualification recognised by any law for the time being in force.

3) GST exemption on services supplied by an educational institution would be
available, if it fulfils the criteria that the education is provided as part
of a curriculum for obtaining a qualification/ degree recognized by law.

4) Section 76 of the Merchant Shipping Act, 1958 (44 of 1958) provides for the
certificates of competency to be held by the officers of ships. It states
that every Indian ship, when going to sea from any port or place, shall be
provided with officers duly certificated under this Act in accordance with such
manning scales as may be prescribed. Section 78 of the Act provides for several
Grades of certificates of competency. Further, Section 79 provides that the
Central Government or a person duly authorised by it shall appoint persons for
the purpose of examining the qualifications of persons desirous of obtaining
certificate of competency under section 78 of the Act.

5) In order to streamline and monitor the maritime education and trainings by
maritime institutes and to administer the assessment agencies, the Merchant
Shipping (standards of training, certification and watch-keeping for Seafarers)
Rules, 2014 has been notified. Under Rule 9 of the said Rules, the Director
General of Shipping is empowered to designate assessment centres. Further the
provisions of sub- rules (6), (7) and (8) of the Rule 4 of the said Rules,
empowers the Director General of Shipping, to approve (i) the training course,
(ii) training, examination and assessment programme, and (iii) approved
training institute etc.

6) From the above discussion, it is seen that the Maritime Training Institutes
and their training courses are approved by the Director General of Shipping
which are duly recognised under the provisions of the Merchant Shipping Act,
1958 read with the Merchant Shipping (standards of training, certification and
watch-keeping for Seafarers) Rules, 2014. Therefore, the Maritime Institutes
are educational institutions under GST Law and the courses conducted by them
are exempt from levy of GST. The exemption is subject to meeting the conditions
specified at Sl. No. 66 of the notification No. 12/ 2017- Central Tax (Rate)
dated 28.06.2017.

7) This clarification applies, mutatis mutandis, to corresponding entries of
respective IGST, UTGST, SGST exemption notifications. Difficulty if any, in
the implementation of this circular may be brought to the notice of the Board.