GST on services or skill development?


The GST Council did not grant Indian Institute of Welding with a waiver in Goods and Services tax that is applicable on the fabrication services. The tax on fabrication services is applicable at 18 per cent and IIW has expressed remorse. This waiver is being demanded for the skill development course that the institution provides.

Also Read: Make Skills Training GST Free

GA Soman, past chairman of IIW Mumbai, pointed out that the 6 week Basic Welding course costs upto Rs 45,000 per student and an 18 per cent tax on this course turns out to be pretty hefty for the students, as the course is designed and targeted for youth from underpreviliged background who find themselves underqualified and undereducated to be employed. These students come from a economically weaker section of the society and a 18 per cent tax sometimes makes them leave the course in between, which otherwise would’ve made them skilled enough to be a part of the MSME industry.