Portfolio management services for healthcare professionals' compliance portfolios are taxable under GST, not exempt

The AAR Karnataka ruled that portfolio management services provided to healthcare professionals for maintaining professional standards are taxable under GST. The applicant charged Rs. 999 annually plus 15% content charges and Medical Council fees to help doctors maintain online portfolios for professional compliance. The Authority determined these services don't qualify for exemption under Entry 74 (healthcare services) or Entry 66 (educational services) of the GST notification, as the applicant merely acts as a liaison between professionals and regulatory bodies without providing direct education, making the services taxable.

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Issues:
1. Admissibility of the application for Advance Ruling
2. Tax exemption on paid educational content for health care professionals
3. Tax exemption on fee for portfolio management services

Admissibility of the application for Advance Ruling:
The application filed by M/s. CMEPEDIA was deemed admissible under Section 97(2)(e) of the CGST Act 2017 as it pertained to determining the liability to pay tax on goods or services.

Tax exemption on paid educational content for health care professionals:
The applicant sought a ruling on whether educational content used by health care professionals to fulfill mandatory requirements was tax-exempt. The Authority found that the services provided by the applicant were not covered under any exemptions. The consideration charged by the applicant was analyzed, revealing that the services were not akin to health care services or educational institutions as defined in relevant notifications. The applicant's role was determined to be that of a liaison agent between health care professionals and professional bodies, collecting charges on behalf of the bodies. As the services did not fall under any exemptions, they were deemed taxable.

Tax exemption on fee for portfolio management services:
The applicant also sought clarity on whether the fee charged for portfolio management services was tax-exempt. The Authority ruled that the fee collected for portfolio management was not exempt from tax under the relevant GST Acts. The applicant's role was highlighted as facilitating interactions between health care professionals and professional bodies, ensuring transparency in fee collection and progress tracking. The services provided were deemed taxable as they did not qualify for any exemptions.

The ruling concluded that both the paid educational content for health care professionals and the fee for portfolio management services were not exempt from tax under the Central Goods and Services Tax Act or Karnataka Goods and Services Tax Act. The decision was based on the analysis of the applicant's services, their role as a liaison agent, and the absence of specific exemptions applicable to the provided services.

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