This circular provides clarification on the GST treatment of services provided by Industrial Training Institutes (ITIs), particularly in relation to vocational training and examination-related services.

The circular clarifies that private ITIs qualify as “educational institutions” for GST purposes only when they provide approved vocational education courses. Approved vocational education courses include courses run by ITIs affiliated to the National Council for Vocational Training (NCVT) or State Council for Vocational Training (SCVT) in designated trades notified under the Apprentices Act, 1961, or other approved modular employable skill courses. Accordingly, services provided by private ITIs in respect of designated trades are exempt from GST. However, services provided by private ITIs in respect of non-designated trades do not fall under the exemption and are liable to GST.

With respect to examination-related services, the circular clarifies that in the case of designated trades, services provided by private ITIs for conduct of entrance examinations, as well as services relating to admission to or conduct of examinations, are also exempt from GST. In contrast, for non-designated trades, GST is payable on entrance fees and on services relating to admission or conduct of examinations, as these are not covered under the exemption.

The circular further clarifies that Government ITIs providing services to individual trainees or students are fully exempt from GST, as these services are treated as services provided by the Central or State Government to individuals. This exemption covers both vocational training and examinations conducted by Government ITIs.