A representation has been received regarding applicability of GST 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 clarified.
Under GST Law, vide Sl. No. 66 of the notification No. 12/2017- Central Tax (Rate)
dated 28.06.2017, services 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.
GST exemption on services supplied by an educational institution would be
available, if it fulfils the criteria that the education is provided as part of a curriculum for
obtaining a qualification/ degree recognized by law.
Section 76 of the Merchant Shipping Act, 1958 (44 of 1958) provides for the
certificates of competency to be held by the officers of ships. 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 78 of
the Act provides for several Grades of certificates of competency. Further, Section 79
provides that the Central Government or a person duly authorised by it shall appoint persons
for the purpose of examining the qualifications of persons desirous of obtaining certificate
of competency under section 78 of the Act.
In order to streamline and monitor the maritime education and trainings by maritime
institutes and to administer the assessment agencies, the Merchant Shipping (standards of
training, certification and watch-keeping for Seafarers) Rules, 2014 has been notified.
Under Rule 9 of the said Rules, the Director General of Shipping is empowered to designate assessment centres. Further the provisions of sub- rules (6), (7) and (8) of the Rule 4 of the
said Rules, empowers the Director General of Shipping, to approve (i) the training course,
(ii) training, examination and assessment programme, and (iii) approved training institute
etc.
From the above discussion, it is seen that the 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, 1958 read with the Merchant
Shipping (standards of training, certification and watch-keeping for Seafarers) Rules, 2014.
Therefore, the Maritime Institutes are educational institutions under GST Law and the
courses conducted by them are exempt from levy of GST. The exemption is subject to
meeting the conditions specified at Sl. No. 66 of the notification No. 12/ 2017- Central Tax
(Rate) dated 28.06.2017.
This clarification applies, mutatis mutandis, to corresponding entries of respective
IGST, UTGST, SGST exemption notifications. Difficulty if any, in the implementation of
this circular may be brought to the notice of the Board