In M/s. Yashaswi Academy for Skills [No. GST-ARA-83/2019-20/B-47 dated August 20, 2021], M/s. Yashaswi Academy for Skills (“the Applicant”) has sought a clarification on the issue as to whether the reimbursement by the companies to the Appellant of the stipend paid to students attract Goods and Services Tax (“GST”).
The Applicant is registered as Third-party Aggregator under the Apprentice Act 1961 which enters into agreements with various companies who impart actual practical training to the students. The Applicant, In lieu of the agreements with the industry, is engaged in preparing the Monthly attendance record of the apprentices, getting it certified from the company, processing stipends of the apprentices etc.
The Hon’ble Maharashtra Authority of Advance Ruling (“MAAR”) noted that the stipend is not directly paid to the trainees by the companies but are routed through the Applicant. That the applicant only acts as an intermediary since the applicant is not allowed to make any deductions from the stipend before providing it to the trainees.
Therefore, the amount received by the applicant in the form of reimbursement does not attract any GST.
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