Fee Sharing from c-ECLS, ENLS, BCLS Courses offered by Trust is Commercial, and not ‘Charitable Activity’: AAR Rules 18% GST Applicable
These certificate courses are aimed for early recognition of critical illness or injury, prompt stabilisation of the affected person, and safe transport of the affected person to an appropriate healthcare facility.
The Authority for Advance Ruling (AAR) in Karnataka held that fee sharing from c-ECLS, ENLS, BCLS courses offered by Trust is not a ‘charitable activity’ and rather is a commercial activity, and thatGoods and Service Tax (GST) is applicable at 18%.Also Read:AAR Bars Advance Ruling u/s 98(2) as GST Exemption Question on Manpower Supply to Government Bodies Pending before HC [Read...
The Authority for Advance Ruling (AAR) in Karnataka held that fee sharing from c-ECLS, ENLS, BCLS courses offered by Trust is not a ‘charitable activity’ and rather is a commercial activity, and that
Goods and Service Tax (GST) is applicable at 18%.
The applicant, M/s JeevaRaksha Trust, is a charitable trust with the objective of offering structured, affordable, and contextually relevant comprehensive emergency skill courses. These certificate courses include c-ECLS, ENLS and BCLS which are aimed at building the skills of students for early recognition of critical illness or injury, prompt stabilisation of the affected person, and safe transport of the affected person to an appropriate healthcare facility.
The applicant submits that the activities relate to public awareness of preventive health, which falls within the ambit of “charitable activities” as defined under clause 2(r) of the Exemption Notification No. 12/2017 - Central Tax (Rate). Accordingly, it is contended that the activities carried out are exempt from the levy of GST.
The AAR took up the main issue of the applicability of the notification for consideration. AAR noted that the completion of these courses is a statutory prerequisite for the award of graduation or post-graduation degrees.
The member bench of Kalyanam Rajesh Rama Rao and Sivakumar S Itagi reiterated that incidental or indirect public benefit does not suffice to bring an activity within the scope of charitable activities for GST exemption, unless the activity squarely falls within the definition prescribed under the notification. They ruled that the applicant does not satisfy the definition of “educational institution” and is therefore not eligible for exemption, thus making them liable to GST at the rate of 18%.
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