In re Cmepedia Gerda Huguette Emma Van Hoecke (GST AAR Karnataka)
1. Is paid educational content, which is used by health care professionals or students to fulfill a mandatory demand by their professional body or institute, exempt of tax?
The paid education content, which is used by health care professionals or students to fulfill a mandatory demand by their professional body or institute is not exempt to tax under the provisions of the Central Goods and Services Tax Act or Karnataka Goods and Services Tax Act or Integrated Goods and Services Tax Act, 2017.
2. Is the fee for the portfolio management, which will reduce the administrational pressure on professional bodies and health care professionals, and which will increase the transparency in the certification of educational activities, exempt of tax?
The fee collected for the portfolio management is also not exempt from tax under the provisions of the Central Goods and Services Tax Act or Karnataka Goods and Services Tax Act or Integrated Goods and Services Tax Act, 2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017
M/s. CMEPEDIA, (hereinafter referred to as the ‘Applicant’) No. 1405, Purva venezia 14, Major Unnikrishnan Road, Yelahanka, Bangalore-560 064 having GSTIN 29AUAPV8596N2ZC have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act, KGST Act and IGST Act.
2. The Applicant is a proprietary concern registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The applicant provides service to health care professional bodies such as State Medical Councils and Dental Councils, Institutes for Healthcare education and hospitals.
3. The applicant has sought advance ruling in respect of the following questions:-
i. Is paid educational content, which is used by health care professionals or students to fulfill a mandatory demand by their professional body or institute, exempt of tax?
ii. Is the fee for the portfolio management, which will reduce the administrational pressure on professional bodies and health care professionals, and which will increase the transparency in the certification of educational activities, exempt of tax?
4. Admissibility of the application: The question is about “determination of the liability to pay tax on any goods or services or both” and hence is admissible under Section 97(2)(e) of the CGST Act 2017.
5. Brief Facts of The Case: The applicant furnishes some facts relevant to the issue:
5.1 The applicant states that the Government budget for CME is insufficient to cover the actual cost of this requirement: 17 lakh/year. This forces health care professionals to pay out of pocket to comply with this requirement.
5.2 The applicant contended that they assist professional bodies such as Karnataka Medical Council to fulfill their responsibility to ensure career long learning of their members.
5.3 The applicant also states that the Karnataka Medical Council readily agreed to collaborate with them as they are aware that this area requires development. And educational material for career-long learning is international quality controlled by an independent body, such as the EACCME in Europe. In India, a similar body needs to be established. Such bodies reduce the bias in information caused by the interests of pharmaceutical or medical device companies. And the applicant re-distributes educational material which has not been influenced by such interests or in a limited or extensive manner. This differentiation is mentioned clearly in their web-site. Health care professionals will be able to make an informed choice on their educational materials.
5.4 The applicant further submits that Indian physicians need to obtain 30 CME credits every five years (6 credits every year). Physicians need to be physically present at a live event to gain these credits. The average travel time to attend a live event based on the weighted average of urban and rural travel time is 2.85 hours. The study time required to gain one CME credit is 4 hours. Therefore the total time needed for one credit is (2.85 + 4 = 6.85) hours. India will lose approximately 6.85 million clinical hours to expose each of the 1.0 million physicians to 1 Credit of CME.
Time required for all Indian doctors to earn 1 CME credit
