GST On Market Led Fee-Based Services” (MLFBS) scheme / GST Exemption on NSDC-Aligned Courses
Background
of the Case
M/s Sisinty Private
Limited is a Bengaluru-based private company operating an online upskilling
platform aimed at improving the technical capabilities of working
professionals. The company has collaborated with the National Skill
Development Corporation (NSDC) as an Approved Training Partner under
the “Market Led Fee-Based Services” (MLFBS) scheme. This initiative is a part
of NSDC's broader agenda to enhance skill-based education through
public-private partnerships.
In this context, the
company approached the Authority for Advance Ruling (AAR) seeking clarity on
whether the services it provides in association with NSDC are exempt from GST.
· AAR
No. KAR ADRG 27/2025
· Date:
28th July 2025
·
Court:
Authority for Advance Ruling, Karnataka
·
Applicant:
M/s Sisinty Private Limited
Questions
Before the Authority
1. What
is the applicable rate of GST on services provided under the Market Led
Fee-Based Services Scheme?
2. Whether
the applicant is eligible for exemption under Entry No. 69 of Notification
No. 12/2017-Central Tax (Rate) dated 28.06.2017?
Applicant's
Submissions and Interpretation
The applicant made the
following key submissions:
- They are recognized as an Approved
Training Partner by NSDC.
- The training programs are conducted
under the Market Led Fee-Based Services Scheme, which is an
NSDC-implemented scheme.
- They are responsible for uploading
candidate details on the Skill India Portal (SIP), ensuring
monitoring of targets and compliance as per the NSDC's terms.
- They contended that their services
fall within the exemption scope of Entry No. 69 of Notification No.
12/2017, which provides GST exemption for services by approved NSDC
training partners.
- The applicant cited similar advance
rulings like those in the cases of M/s Nxtwave Disruptive Technologies
Pvt. Ltd. and M/s Interviewbit Software Services Pvt. Ltd.,
where GST exemption was granted for identical NSDC-aligned training
services.
According to the
applicant, the following two conditions were satisfied to avail GST exemption:
- The service provider (Sisinty Pvt.
Ltd.) is an approved training partner of NSDC.
- The services are offered in
relation to a scheme implemented by NSDC.
Proceedings
& Personal Hearing
The applicant was
represented by Chartered Accountant Mr. Swagath Killamasetty during the
personal hearing held on 16th June 2025. He reiterated the facts and
legal position submitted in the application.
Legal
Analysis by the Authority
The AAR analyzed the
scope of Entry No. 69 of Notification No. 12/2017-Central Tax (Rate) as
amended by Notification No. 08/2024 dated 08.10.2024. The key points of the
exemption entry include:
- Services must be provided by:
- NSDC itself,
- A Sector Skill Council,
- An assessment agency,
- An NSDC-approved training partner,
etc.
- The services must be in relation to:
- National Skill Development Program,
- NSDC-implemented scheme,
- Any National Skill Qualification
Framework (NSQF)-aligned qualification, etc.
AAR’s
Findings and Decision
After examining the
facts, documents, and submissions, the Authority concluded:
- M/s Sisinty Private Limited is indeed
an NSDC-approved training partner.
- The services offered under the Market
Led Fee-Based Services Scheme fall squarely within the ambit of
schemes implemented by NSDC.
- Both criteria for GST exemption under
Entry No. 69 are fully satisfied.
Ruling:
1. Rate
of GST: NIL (Exempted) for services under the MLFBS
Scheme.
2. Eligibility
for Exemption: The applicant is eligible for GST
exemption under Entry No. 69 of Notification No. 12/2017-Central Tax
(Rate), as amended.
Conclusion
The ruling brings welcome
clarity for private ed-tech companies and training entities engaged in skilling
initiatives in partnership with NSDC. The decision confirms that services
rendered under NSDC-approved schemes by registered training partners are exempt
from GST, ensuring affordability and promotion of skill-based training in
India.
This ruling reinforces
the government’s aim to encourage vocational training and upskilling
initiatives by removing the GST burden for NSDC-aligned programs.
Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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