Circular No.: 117/36/2019-GST
Date of Circular: 11th October 2019
Relevant Sections and Rules:
- CGST Act, 2017:
- Section 168(1): Power to issue instructions
- GST Exemption Notification:
- Sl. No. 66, Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017
- Merchant Shipping Act, 1958: Sections 76, 78, 79
- Merchant Shipping (Standards of Training, Certification and Watch-keeping for Seafarers) Rules, 2014: Rules 4(6)-(8), 9
Summary of Circular:
This circular clarifies the GST exemption eligibility for maritime courses conducted by Directorate General (DG) Shipping-approved Maritime Training Institutes (MTIs) in India.
- GST Exemption Criteria for Educational Institutions:
- As per Sl. No. 66 of Notification No. 12/2017-CT(R), services by educational institutions to students, faculty, and staff are exempt from GST.
- “Educational institution” includes entities providing education as part of a curriculum leading to a qualification recognized by law.
- Legal Framework Governing Maritime Education:
- Section 76–79 of the Merchant Shipping Act, 1958 and related Rules, 2014:
- Certificates of competency are mandatory for ship officers.
- DG Shipping is empowered to approve courses, assessment programmes, and training institutes.
- Training and certification is recognized under the Act as legally valid and mandatory.
- Conclusion & Clarification:
- Since the maritime training courses are approved by DG Shipping and are essential for obtaining legally recognized competency certificates, the training institutes qualify as educational institutions under GST law.
- Therefore, the services provided by such MTIs are exempt from GST, subject to the conditions in Sl. No. 66 of Notification No. 12/2017-CT(R).
- Applicability Across Tax Types:
- This exemption applies mutatis mutandis to IGST, UTGST, and SGST via their respective notifications.
Source: Circular No.: 117/36/2019-GST
