TaxTMI 
TaxTMI 
2026 (4) TMI 353
X X X X Extracts X X X X
X X X X Extracts X X X X
....e designed for healthcare providers as well as laypersons, with the aim of addressing the need for both first-response assistance and expert medical aid, thereby enabling the saving of lives in all reported emergency situations. 3. The Applicant has sought an advance ruling in respect of the following questions: I. "Whether the applicant is liable to pay GST on the share of fees received from colleges in respect of the C-ECLS (Comprehensive Emergency Care and Life Support) course offered to the students of MBBS in RGUHS affiliated medical colleges?" II. "Whether the applicant is liable to pay GST on the share of fees received from colleges in respect of the ENLS (Emergency Nursing Care and Life Support) course offered to the students of Nursing in RGUHS affiliated nursing colleges?" III. "Whether the applicant is liable to pay GST on the share of fees received from colleges in respect of the BCLS (Basic Care and Life Support) course offered to the students in RGUHS affiliated medical colleges? IV. "Whether the applicant is liable to pay GST on the fees collected from students in general (other than medical students) in respect of the BCLS Cour....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l as laypersons, aimed at enabling them to act as "first responders" and Good Samaritans at home, on the road, or at the workplace. The course is mandatory for all paramedical students enrolled in allied health sciences colleges affiliated with RGUHS. The Certificate of the above courses is valid for 5 years and the candidate would need to undergo recertification in period of 5 years. 5.2 As per the details furnished by the Applicant in the application, the Applicant is providing the above-referred courses to students of Medical Colleges, Nursing Colleges, and Allied Health Sciences Colleges affiliated with RGUHS, where such courses are mandatory. The students pay the prescribed fees to the respective affiliated colleges in their capacity as students, and the said fees are thereafter apportioned in three parts among the Colleges/Institutions, the University, and the Applicant. The role and functions of all the stakeholders are as detailed below:- Stakeholder Share of Prescribed Fees Role/Functions Institutions/Colleges 70% To meet the costs of skill laboratories, equipment, instructors' honorarium, and provision of lunch and tea for participants during th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....plicant contends that the activities carried out by it fall under Entry Serial No. 1 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, and are therefore exempt from the levy of GST. 6.3 The applicant has also referred the "Text Book of Public Health and Community Medicine" published by the Department of Community Medicine, Armed Forces Medical College, Pune in collaboration with the World Health Organization, India Office, New Delhi, which defined the word "Public Health" by referring to the definition forwarded by CEA Winslow as "The science and art of preventing disease, prolonging life and promoting physical health and efficiency through organized community efforts for the sanitation of the environment, the control of community infections, the education of the individual in principles of personal hygiene, the organization of medical and nursing services for the early diagnosis and preventive treatment of diseases and the development of social machinery which will ensure to every individual, in the community, a standard of living adequate for maintenance of health". Further, it provides insight into the three different levels of preventive health, ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....en, infants and young children, of industrial workers and various disease screening camps are all examples of this level of prevention. (C) Tertiary Prevention:- These include all measures undertaken when the disease has become clinically manifest or advanced, with a view to prevent or delay death, reduce or limit the impairments and disabilities, minimize suffering and to promote the subject's adjustment to irremediable conditions. Tertiary prevention has two types of approaches inbuilt into it, viz. disability limitation and rehabilitation. The applicant stated that as preventive health includes 3 stages, the first stage relates to primary prevention which includes under its ambit health education. The service provided by the applicant is in the nature of health education so that the candidate can act as a first respondent during medical emergency. Further, Secondary Prevention includes early diagnosis and prompt treatment. The course provided by the applicant can assist the candidate in early diagnosis of the medical emergency so that the candidate can take the appropriate action and transport the victim to the appropriate health center. 6.4 The applicant fu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Karnataka Goods and Services Tax Act, 2017 are pari materia and contain identical provisions on all material aspects, differing only in respect of certain specific provisions. Accordingly, unless a particular reference is made to such dissimilar provisions, any reference to the CGST Act, 2017 shall also be construed as a reference to the corresponding provisions of the KGST Act, 2017. 9. We have considered the submissions made by the applicant in the application for advance ruling. We have also examined the issues on which the advance ruling has been sought, the relevant facts of the case, and the arguments advanced by the applicant, including the submissions made by the learned authorised representative during the course of the personal hearing and later. 10. We have carefully examined the application made by the applicant, the submissions provided therein and later, the arguments advanced during the personal hearing. The main issue for consideration is ""Applicability of a notification issued under the provisions of this Act" 11. The applicant seeks an advance ruling in respect of the questions mentioned in paragraph 3 supra. We proceed to answer the question no. I to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t is registered as a charitable trust under Section 12AA / Section 12AB of the Income-tax Act, 1961. The said registration is valid and in force. Accordingly, the applicant satisfies the first condition prescribed under Entry No. 1 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. 12.5 The second issue for determination is "whether the services undertaken by the Applicant qualify as "charitable activities." The term "charitable activities" is defined under paragraph 2(r) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. As per the said definition, only the specified activities enumerated therein, inter alia, services relating to public health by way of public awareness of preventive health, family planning, or prevention of HIV infection, when provided by an entity registered under Section 12AA or Section 12AB of the Income-tax Act, 1961, qualify as charitable activities for the purpose of exemption under Entry No. 1 of the said notification. On a plain reading of paragraph 2(r), it is evident that the scope of "charitable activities" is restrictive and exhaustive. The benefit of exemption cannot be extended by impli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n early stage, and reduce health risks through lifestyle changes, screening, and awareness. It focuses on prevention rather than cure, early detection, risk reduction, and promotion of healthy lifestyle choices. Examples include vaccination, periodic health check-ups, hygiene practices, avoidance of tobacco and alcohol, and health awareness programmes relating to lifestyle diseases. 12.7 Meaning of "Public health by way of public awareness of preventive health" On a conjoint reading of the above expressions in para 12.6 supra, "public health by way of public awareness of preventive health" refers to: Activities undertaken to protect and improve the health of the community at large by educating and informing the general public about preventive measures, healthy lifestyles, and early detection of diseases, with the objective of preventing illness, reducing health risks, and promoting informed health-related behaviour, without involving individualised medical treatment or commercial consideration. In simple terms, it involves spreading health-related knowledge among the public to prevent diseases before they occur, through population-focused, educational and awareness-base....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mergency response, and rehabilitation, paragraph 2(r) of Notification No. 12/2017 does not exempt all activities connected with public health. 3. The notification restricts exemption only to specific modes of activity, namely public awareness of preventive health, and not to professional training or clinical skill development. 4. The definitions cited by the Applicant are descriptive in nature and cannot override or expand the express wording of a tax exemption, which must be construed strictly. Accordingly, medical literature cannot be used to widen the ambit of an exemption notification, particularly where the notification consciously uses a narrow and activity-specific expression. (B) Further, the Applicant has contended that since preventive health includes primary, secondary, and tertiary prevention, and health education is part of primary prevention, the courses conducted by it qualify as public awareness of preventive health. This argument is not acceptable, for the following reasons: 1. The levels of prevention describe stages in disease control, not the nature or target audience of services for GST exemption. 2. Even if health e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tutional arrangements. Therefore, policy alignment does not substitute statutory compliance. 12.10 Findings:- The activities undertaken by the Applicant are in the nature of professional training and educational support services rendered to educational institutions for fulfilment of mandatory academic requirements. Such services cannot be characterised as charitable activities under paragraph 2(r) of Notification No. 12/2017-Central Tax (Rate), as they do not involve dissemination of awareness to the general public, nor are they in the nature of preventive health education intended for society at large. The expression "public awareness of preventive health" under paragraph 2(r) contemplates activities that directly promote health awareness among the general public, such as public health campaigns, community outreach programmes, immunisation drives, screening initiatives, and awareness programmes accessible to society at large. In the present case, the immediate and direct recipients of the services are students and healthcare professionals undergoing specialised training within an academic framework. The courses are not designed or delivered as public awareness progr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sher training of instructors etc and 10% of the fees is paid to RGUHS towards certification fees. Apart from that the applicant also offers training for this course within its premises and / or outside its premises with its mobile training unit and in this case 10% of the fees collected is paid to RGUHS towards certification fees. In the instant case, the applicant has contended that it is registered under Section 12AA of the Income-tax Act, 1961 and is engaged in charitable activities. It is further contended that the activities undertaken by them fall within the ambit of 'charitable activities', inasmuch as the courses offered relate to public health by way of public awareness of preventive health, family planning or prevention of HIV, and are therefore exempt from levy of GST. The applicant has submitted that the courses offered by them are aimed at prevention of critical illness and focus on imparting skills to candidates relating to: (a) early recognition of critical illness or injury, (b) prompt stabilisation of the affected person, and (c) safe transport of the affected person to a place of appropriate medical care. It is further submit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er Serial No. 1 of the said notification in respect of the course offered by them, and the same is liable to GST in accordance with law." 13.4 "Having examined the applicability of exemption under Serial No. 1 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, it is now necessary to examine whether the services provided by the applicant are eligible for exemption under any other entry of the said notification. In this regard, attention is invited to Serial No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, which grants exemption in respect of services provided by an 'educational institution' to its students, faculty and staff, subject to fulfilment of the conditions and definitions prescribed therein. Accordingly, for the purpose of examining the eligibility of the applicant for exemption under Serial No. 66 of the said notification, it is necessary to refer to the text of Serial No. 66 and the definition of 'educational institution' as contained in paragraph 2(y) of the notification, which are reproduced below." Statutory provisions :- Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended: Serial No....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cational institution' under paragraph 2(y) contemplates the following categories: (i) institutions providing pre-school education and education up to higher secondary school or equivalent; (ii) institutions providing education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; and (iii) institutions providing education as a part of an approved vocational education course. In the present case, it is an admitted position that the applicant is not providing pre-school education or education up to higher secondary school or equivalent and, therefore, does not satisfy the condition specified at clause (i) of paragraph 2(y). Further, the course offered by the applicant is not part of any curriculum leading to the grant of a qualification recognised by any law for the time being in force. The certificate issued upon completion of the course is only a skill-development or training certification and cannot be equated with a recognised educational qualification. Accordingly, the applicant does not satisfy the condition specified at clause (ii) of paragraph 2(y). It is also evident that the course offe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e?" 14.1 Taxability of Fees Received for Renewal of Certificates (c-ECLS / ENLS / BCLS Courses) 14.2 At the initial stage, the said courses were made mandatory for all students of colleges affiliated to RGUHS, and the Applicant receives a stipulated share of the fees collected by such affiliated colleges for the specific role performed by them, as detailed in paragraph 5 supra. The certificate issued on completion of the aforesaid courses is valid for a period of five years, after which the candidate is required to undergo re-certification. In respect of renewal of the said certificates, the training is again imparted by institutions affiliated to RGUHS. Even in cases where the training is provided by institutions other than those affiliated with RGUHS, the role of the Applicant remains unchanged, and the Applicant continues to receive only 20% of the fee share from such institutions towards the same specified role. Since the role performed by the Applicant remains identical both at the initial stage as well as at the stage of renewal of certification, the nature of the services provided by the Applicant does not undergo any change. Accordingly, the activities carried o....