Home India Ministry of Ports, Shipping and Waterways Clarification on applicability of GST exemption to the DG Sh...
Date: 2019-10-25 Category: DGS Circular State: Union Government Country: India

Clarification on applicability of GST exemption to the DG Shipping approved maritime courses conducted by Maritime Training Institutes approved by DG Shipping, Govt. of India.

Issued by Ministry of Ports, Shipping and Waterways · Directorate General of Shipping

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Executive Summary & Key Takeaways

**Executive Summary** This document, MSL Circular No. 01/2019 issued on October 25, 2019, clarifies the applicability of GST exemption to maritime courses approved by the Directorate General of Shipping (DGS). It references Circular No. 117/36/2019-GST, issued by the Ministry of Finance on October 11, 2019, which confirms that such courses conducted by approved Maritime Training Institutes (MTIs) are exempt from GST, subject to meeting specified conditions. DGS-approved MTIs can use the October 11, 2019 Circular to claim GST benefits. **Key Points / Main Content** * **Approval and Regulation of MTIs:** * MTIs are approved by the Director General of Shipping (DGS) under the Merchant Shipping Act, 1958, and related rules. * These institutes are authorized to conduct maritime courses approved by the DGS. * **GST Exemption Clarification:** * The Ministry of Finance has clarified via Circular No. 117/36/2019-GST (dated October 11, 2019) that maritime training institutes are considered educational institutions under GST law. * Maritime courses conducted by these approved institutes are exempt from GST levy. * **Conditions for GST Exemption:** * The exemption is conditional on meeting the requirements specified in Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. * The clarification applies correspondingly to IGST, UTGST, and SGST exemption notifications. * **Application of Circular:** * DGS-approved MTIs conducting maritime courses should refer to the circular dated October 11, 2019, to benefit from the GST exemption. **Impact Analysis** **Maritime Training Institutes (MTIs) approved by DGS:** **Impact:** * Eligible to claim GST exemption on DGS-approved maritime courses, potentially reducing costs and administrative burdens. **Action Required:** * Review the conditions specified in Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, to ensure compliance. * Refer to Circular No. 117/36/2019-GST when claiming the GST exemption. **Revenue Authorities (Central and State):** **Impact:** * Need to ensure that maritime training institutions correctly apply the conditions for GST exemptions. **Action Required:** * Be aware of this circular, so they appropriately apply and administer it. **Director General of Shipping (DGS):** **Impact:** * Oversee the correct and consistent application of the GST exemption by approved MTIs. **Action Required:** * Inform and assist institutions in India of the latest status through DGS website.

Key Entities Referenced

Merchant Shipping Act, 1958: Indian law regulating merchant shipping, relevant for maritime training course recognition and competency certificates. Merchant Shipping (Standards of Training, Certification and Watch-keeping for Seafarers) Rules, 2014: Rules under the Merchant Shipping Act governing maritime training standards. Directorate General of Shipping: The primary regulatory body responsible for maritime affairs in India, including the approval of maritime training institutes (MTIs) and courses. Notification No. 12/2017- Central Tax (Rate): Central government notification specifying conditions for GST exemptions, specifically related to educational institutions. GST: Goods and Services Tax, the Indian indirect tax, regarding which clarification on exemptions for maritime training courses is provided.
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T.t;I tT i{Iq a-{ zn, d^q1? 3mqrftd {d},r.nryfrql rr-rnffin rraarq t'rqft- :lt1ffi4 qTftq cfr-rtil.T .iT'{{ 1 '1 :{+4;rr , 2019 - i.,l't44 rrFrra rr T'iFr T- r aq qfrc{ fi qfrqrern qqrql 3mq1-f,{rrf r B. rq ir-{zq qafriqrd qa erw ofuq, ril,n flT,r Ar 3flqF{ n qFl ft:,qr rrtr 7 I lrr{rq, Gfl,r-.- 1urrrffi<y :q fi+zq qerfrirm (r3r1qrTl) Ei?Tr{ {',IfT( vfi: t d-q?q qilf{isrr1q 4it n{qEZ i qrt-,rq q'{r-{ T qfi ffi -3Itrad q{_ftq xfDH.,r q-rr-rl;I t rfrfrfr'qa{r?i: t qB-a, rlrr{ q{qla, qia qR.a-eq qffi-q qt-4t{ rr+q t, dq( qr.i, af fta1-l , ooo1 2 j.{;i-{Uq qlfrirpa (rf}Iem, ffi, 'apn qra6r;t-^_-' .i/sl=.-a\-l' u/ r"./ I rf'z\rr I\it.$-;;1Y { -\i '* \:: ==i --,'\,r/ -r, fus {mr T vt nld a { a1 6 ql- x{ a/ qco v / E MR rNN rM srE RN Y T o FO F S HIN IPD PI TA NG fr-s6{ a6ffis.6q4q, 1ffi DIRECTORATE GENERAL OF SHIPPING, MUMBAI F. No. SL-MtS-9{3}/2019 Dated:25.10.2C19 MSL Circular No. 01 of 2019 u The Mariti,ne Training rnstitutes (MTrs) are approved by Director Generar of shipping {DGs), Gow. of rndia, under the provisions of Merchant shipping Act, 1958 read with Merchant shipping {standards of Training, certification and watch-keeping for seafarers) Rures, 2014. 2' Such institutes are aflowed to conduct the maritirne courses approved by the Director General of Shipping, Govt. of tndia. 3' some DGS approved MTls have brought to the notice ofoG shipping, Govt. of rndia, about the issue of denial of exemption from service Tax/Gsr by the concerned Revenue Authorities in relation to courses conducted by them. 4' This issue of deniar of exemption from Service Tax/ GST, was examined by the Directorate and referred to the centrar Board of rndirect Tax€s and customs (cBlDT), Department of Revenue, Ministry of Finance, Govt. of lndia. 5. The reference of the DG Shipping on the above issu€ was examined by the said Department, 6' After examination of the issue, the Ministry of Finance, Department of Revenue {Tax Research Unit) has issued a circurar No. r17/ 36/zo7g-Gsr dated 11th october, 2019, crarifying that Maritime Training lnstitutes and their training courses are approved by the Director General of shipping which are dury recognised under the provisions of the Merchant shipping Act, 1958 read with Merchant shipping (standards of Training, certification and watch-keeping for seafarers) Rules, 2014. Therefore, the Maritime lnstitutes are edlrcational institutions under GST Law and the courses conducted by them ar€ exempted from revy of Gsr. The exemption is subject€d to meeting the conditions specified at sr. No. 65 0f the notification No. t2/20L7 - Central Tax (Rate) dated 28.06.zoLr. This crarification appries, mutatis mutandis, to corresponding entries of respective lcsr, urGST, sGST exeimption notifications. 7' The DGs approved MTrs conducting maritime courses approved by DG Shipping may take note of the said circular dated 11th october, 2019, for taking the benefits of the sarne. The copy of the Circular is enclosed herewith for reference. ifrzr frftn, efi,iii-d, a*itlrm 2qi, Aq{,6r.{..fiq ?te, 6r"TrqT,t(gf ) 5{-aooo+z gth Floor, BETA Building, l-Think Techno Campus, Kanjur Village Road, Kaniurmarg (E), Mumbai-400042 F,f,l,"fet tlo.: +91-22-2575 2cy'Ot'tl23 &frqr^r., +91-22-2575 2)2gf,,5 i-td/Email: doshio-dos(Anic.in a-fil3z/W"b.it., **,r, doshiooino.oov.in8. This issues with the approval of Director General of Shipping & Additional Secretary to the Government of India. Yours faithfully, -[\...tL'/ Deputy Director Ge €ncl.: As above. To All DGS approved Maritime Training lnstitutes in lndia through DGS websit€. Cooy for kind information to: 1. Secretary to the Government of lndia, Ministry of Shipping, Transport Bhavan, 1 parliament Street, New Delhi - 110 001. 2. Deputy Director General of Shipping [Training], DGS, Gol. *i ' /ir4^ .k(i^n''\\ Circular No. I I 7/16/2019-(lST F. No. 354/l 36/201 9-TRU Government of lndia Ministry of Finance Department ofRev€nue (Tax research Unit) Room No. 146, North Block, New Delhi, the I I'h October,20t9 To: The Principal Chief CommissionerV Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / (All) The Principal Director Generals/ Director Generals Madam/Sir, Subject: Clarification on applicability ofGST exemption to the DG Shipping approved maritime courses conducted by Maritime Training lnstitutes of India - reg. A representation has been reoeived regarding applicability ofGST 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 clarifred. 2. Under GST Law, vide Sl. No. 66 of the notification No. l2i20l7- Central Tax (Rate) dated 28.06.2017, sewices 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 instiotion would be available, if ir 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, l95E (4a of 1958) provides for the certificates ofcompetency to be held by the officers ofships. 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 ?8 of the Act provides for several Grades of certificates of competency. Further, Section 79 provides that the C€ntral Govemment or a person duly authorised by it shall appoint persons for the purpose of examining the qualificatiorn of persons desirous of ob,taining certificate ofcompetency under soction 78 ofthe Act. 5. In order to streamline and monitor the maritime cducation and trainings by maritime institutes and to administer the ass€ssment agencies, the Merchant Shipping (standards of training, ccrtifrcation and watch-keeping for Seafarers) Rulcs, 2014 has been notified. Under Rule 9 of the said Rules, the Director General of Shipping is empowered to designate$^ Circular No. t I 7/36/2019-GST assessment centres. Further the provisions of zub- rules (6), (7) and (8) of the Rule 4 of the said Rules, empowers the Director Ceneral ofShipping, to approve (i) the training course, (ii) training, examination and assessment programme, and (iii) approved training insrirute etc. 6. From the above discussion, it is seer that 6e 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, l95E read with the Merchant Shipping (standards of training, certiftcation and watch-fteeping for Seafarers) Rules, 2014. Therefore, the Maritime Institut€s are edwational institutions under GST Law and the courses conducted by them are exempt from levy of GST. The exemption is subject to rneeting the conditions specified at Sl. No. 66 of the notification No. l21 201 7- Central Tax (Rate) dated 28.06.2017. 7. This clarification applies, nrulatls mutandis, to conesponding entri€s of respective IGST, UTGST, SGST exemption notifications. Difficulty if any, in the implementation of this circular may be brought to the notice of the Boand. Yours Faithfully, Susanta Mishra Technical Oflicer (TRU) Email: susanta.mishra8T@gor,.in Tel: 0l l-23095558 2

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