GST Applicable On Education & Training To Commercial Pilots As Per DGCA Syllabus: AAAR

The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has ruled that education and training for commercial pilots as per the syllabus of the Directorate General of Civil Aviation (DGCA) are not exempt from GST.

The bench of Uma Shanker and Ministhy S., while upholding the ruling of the Authority of Advance Ruling (AAR), noted that the appellant was not empowered to conduct the examination but impart training and issue a completion certificate, which serves the purpose of a document required for filing the application with the DGCA so as to attend the examination.

The appellant is a group company of Inter Globe Enterprises Limited, which is engaged in the business of facilitating the training of commercial pilots on the aircraft simulators installed at its training facilities in accordance with the training curriculum approved by the Directorate General of Civil Aviation for obtaining the extension of aircraft type ratings on their existing licences.

The appellant is an approved training organisation by the DGCA in Noida, Uttar Pradesh, where Aircraft Type Rating (ATR) training courses are provided to independent pilots who are already hold their commercial pilot's licence as per the DGCA-approved syllabus and manual.

The appellant sought an advance ruling on the issue of whether the supply of education and training services to commercial pilots as per the training curriculum approved by the DGCA for obtaining the extension of ATRs on their existing licence would be exempt from the levy of GST.

The AAR ruled that the supply of education and training services to commercial pilots in accordance with the training curriculum approved by the DGCA for obtaining the extension of ATRs on their existing licences is not exempt from GST.

The appellant, aggrieved by the AAR’s ruling, has preferred an appeal before the Appellate Authority for Advance Ruling.

The appellant contended that the training provided is a part of the curriculum approved by the DGCA, and the AAR has not given any reasonable finding as to how it is not tenable in a mechanical manner.

The appellant contended that the completion of ATR extension training in accordance with the syllabus approved by the DGCA is recognised under the powers granted by the Aircraft Act, the Aircraft Rules, and the Civil Aviation Requirement, i.e., they are recognised by the law.

The AAAR, while rejecting the contentions of the appellant, ruled that there is no statutory requirement for the Course Completion Certificate by DGCA and that such a certificate only enables the trainee pilot to apply to DGCA for appearing in the examination conducted by it. In fact, this examination conducted by the DGCA is the statutory requirement and not the examination by the appellant. The appellant is merely coaching or preparing the candidates for this type rating examination.

The AAAR held that the Aircraft Act and the Aircraft Rules did not approve the appellant as an institute for the conduct of an examination that yields or results in a qualification but only to issue a course completion certificate, which is useful only as one of the enclosures to file the application for the Type Rating Examination conducted by the DGCA.

Appellant’s Name: CAE Simulation Training Private Limited

Date: 31.05.2023

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