IS GST APPLICABLE ON REIMBURSEMENT RECEIVED OF STIPEND PAID TO TRAINEES ?

GST IS NOT APPLICABLE ON REIMBURSEMENT RECEIVED OF STIPEND PAID TO TRAINEES

THE MAHARASHTRA
AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX

Case Name: Yashaswi Academy for Skills (GST AAR Maharashtra)
Appeal Number: Advance ruling No. GST-ARA- 84/2019-20/B-48
Date of Judgement/Order: 20/08/2021

ORDER

(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
For reasons as discussed in the body of the order, the questions are answered thus —

Question 1.  Whether the reimbursement by Industry Partner to YAS of the stipend paid to students attracts GST?

Answer: – The reimbursement by Industry Partner to the applicant (YAS), of the stipend paid to the trainees, does not attract tax under the GST Acts.

Question 2. Whether the reimbursement by Industry Partner to YAS of the insurance premium attracts GST?

Answer: – Not answered since question is withdrawn by the applicant.

Question 3. Whether the reimbursement by Industry Partner to YAS of the expenses for uniform and safety shoes attracts GST?

Answer: – Not answered since question is withdrawn by the applicant.