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2024 (4) TMI 841 - AAR - GSTExemption from GST - supply of services (subscription of Clinical Key) to the All India Institute of Medical Sciences (AIIMS) - Governmental Authority or not - Seeking the rate of tax/ exemption on the supplies under Clinical Key subscription product supplied to specified customers (educational institutions) - taxability of supply of services (subscription of Clinical Key) to other educational institutions. Whether the supply of services (subscription of Clinical Key) to the All India Institute of Medical Sciences (AIIMS) is exempt from GST under Entry No. 69 (b) (v) of the Notification No. 9/2017-IT (Rate) dated 28 June 2017? - HELD THAT - The customer, with the 'Clinical Key' subscription, gets online access to a medical centric database with a search facility. The website also has a browser facility for navigation of the content that is supplied in electronic form. There is no human intervention from the applicant's side as the user himself navigates through the contents and access whatever that is available in the subscribed database - Entry 69(b)(v) read with second proviso and definition of 'educational institution' implies that the supply of online educational journals or periodicals to institutions providing M(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; is exempted from IGST unconditionally. Whether the services provided by the applicant qualifies to be that of supply of online educational journals or periodicals; and whether AIIMS qualifies to be an institution providing education as a part of the curriculum for obtaining qualification recognized by law? - HELD THAT - In the instant case, the service recipient is AIIMS, established in 1956 by the All-India Institute of Medical Sciences Act, 1956 ('the AIIMS Act') as, an Institute body corporate and approved as the autonomous university by both the National Medical Commission (NMC) and the University Grants Commission (UGC). AIIMS provide both undergraduate and post graduate degrees in medical and para medical fields on its own and thus gets covered under an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force. The applicant provides online access and retrieval services to a systematically organized clinical / medical database with one of the constituents of database being journals or periodicals. One constituent part of database alone cannot define the whole. Given the composite nature of contract and supply involving several constituents detailed above, the supply by the applicant does not qualify as 'supply of online educational journals or periodicals' - thus, the supply of services by the applicant to AIIMS is not covered under exemption in terms of Entry No. 69(b)(v) of the Notification No. 9/2017-IT(Rate) dtd 28.6.2017 as amended. Whether the Applicant or AIIMS needs to discharge the GST liability (i)for the period up to 30 September 2023 and (ii) for the period after 01 October 2023? - HELD THAT - Section 14 of IGST Act, the applicant intends to know whether the applicant (being the supplier) or AIIMS (recipient of service) is liable to discharge GST. In terms of the said Section, GST is liable to be paid by the person, located in non-taxable territory, on supply of OIDAR services to a non-taxable online recipient (NTOR) located in taxable territory. The phrase 'Non-taxable Online Recipient' (NTOR) is defined in Section 2(16) of IGST Act, 2017 and was amended w.e.f 01.10.2023. Section 14 of IGST Act, the applicant intends to know whether the applicant (being the supplier) or AIIMS (recipient of service) is liable to discharge GST. In terms of the said Section, GST is liable to be paid by the person, located in non-taxable territory, on supply of OIDAR services to a non-taxable online recipient (NTOR) located in taxable territory. The phrase 'Non-taxable Online Recipient' (NTOR) is defined in Section 2(16) of IGST Act, 2017 and was amended w.e.f 01.10.2023. For the period w.e.f 1.10.2023, it is clear that any unregistered person receiving OIDAR services, located in taxable territory is considered as NTOR. It is an admitted fact in that AIIMS has obtained GST Registration. Hence AIIMS being a GST registered recipient of OIDAR services, is liable to discharge GST liability from 1.10.2023. The condition that the services are received in relation to any purpose other than commerce, industry or any other business or profession is not satisfied as the service recipient viz., AIIMS, as an institution, is into the business of providing medical and para-medical courses both at the undergraduate and postgraduate levels and awards its own degrees and thus the said services are received in relation to the business. Thus AIIMS does not satisfy the definition of NTOR in terms of Section 2(16). The provider of the OIDAR services is located outside India and the recipient of the said service i.e. AIIMS is located in India as a matter of fact. Section 13(12) of the IGST Act stipulates that the place of supply OIDAR services shall be the location of the recipient of services and in the instant case the place of supply is in India as the recipient AIIMS is located in India. Thus all the conditions of import of service are satisfied and hence the receipt of OIDAR services by AIIMS amounts to import of services. Therefore AIIMS, being a person located in the taxable territory other than non-taxable online recipient, is liable to discharge GST on OIDAR services for the period upto 30.09.2023, in terms of Sl.No.l of Notification 10/2017-Integrated Tax (Rate) dated 28.06.2017. Whether the supply of services (subscription of Clinical Key) to other educational institutions is exempt from GST under Entry No. 69 (b) (v) of the Notification No. 9/2017-IT (Rate) dated 28 June 2017? - HELD THAT - The exemption under Entry No. 69 (b) (v) of the Notification No. 9/2017-IT (Rate) dated 28 June 2017 is applicable only on 'supply of online educational journals or periodicals', whereas the applicant providing services of subscription of Clinical key are providing services by way of online access and retrieval services to a systematically organized clinical / medical database, and not covered under subject entry of the Notification.
Issues Involved:
1. Exemption of GST on subscription services to AIIMS. 2. GST liability on subscription services to AIIMS for periods up to and after 30 September 2023. 3. Exemption of GST on subscription services to other educational institutions. Summary: Issue 1: Exemption of GST on Subscription Services to AIIMS The applicant sought an advance ruling on whether the supply of services (subscription of Clinical Key) to the All India Institute of Medical Sciences (AIIMS) is exempt from GST under Entry No. 69(b)(v) of the Notification No. 9/2017-IT (Rate) dated 28 June 2017. The Clinical Key service is an online subscription-based clinical database with search and navigation facilities. The Authority ruled that the supply of Clinical Key does not qualify as "supply of online educational journals or periodicals" because it is a composite supply involving several constituents beyond just journals or periodicals. Therefore, the supply of services to AIIMS is not exempt from GST under the specified entry. Issue 2: GST Liability on Subscription Services to AIIMS for Periods Up to and After 30 September 2023 The applicant questioned whether they or AIIMS need to discharge the GST liability for the periods up to 30 September 2023 and after 01 October 2023. The Authority examined Section 14 of the IGST Act, which specifies that the supplier located in a non-taxable territory is liable to pay GST on OIDAR services supplied to a non-taxable online recipient (NTOR). Up to 30 September 2023, AIIMS did not qualify as an NTOR as it received services in relation to business. Therefore, AIIMS, being the importer of services, is liable to discharge GST for the period up to 30 September 2023. For the period after 01 October 2023, AIIMS, being GST registered, is liable to discharge GST liability. Issue 3: Exemption of GST on Subscription Services to Other Educational Institutions The applicant sought to know whether the supply of services (subscription of Clinical Key) to other educational institutions is exempt from GST under Entry No. 69(b)(v) of the Notification No. 9/2017-IT (Rate) dated 28 June 2017. The Authority ruled that the exemption is applicable only to the "supply of online educational journals or periodicals." Since the applicant provides a composite service of online access and retrieval to a clinical/medical database, it does not qualify for the exemption under the specified entry. Ruling: a) The supply of services (subscription of Clinical Key) to AIIMS is not exempt from GST under Entry No. 69(b)(v) of the Notification No. 9/2017-IT (Rate) dated 28 June 2017. b) The applicant is not liable to discharge GST liability for the supply of services to AIIMS for both periods. AIIMS, as the importer of services, is liable to discharge GST. c) The supply of services (subscription of Clinical Key) to other educational institutions is not exempt from GST under Entry No. 69(b)(v) of the Notification No. 9/2017-IT (Rate) dated 28 June 2017.
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