In what could complicate the question of taxation of education and even medical services, online courses specifically targeted at doctors and mandated by the medical council should face Goods and Services Tax (GST), an AAR has ruled. 

Under GST both, medical care and education are outside the gamut of the GST framework. 

The Karnataka AAR said that the online education courses cannot be considered to be covered under the definition of medical facility even if the course is mandatory for doctors. 

Also, this is not a professional course and more on the lines of executive education and should face GST the AAR ruled. 

Cmepedia Gerda, provides services to doctors to maintain the professional standards as required by the law and guidelines by the Medical Council, as per the AAR ruling announced in February first week. 

The online institute wanted clarity as to whether the paid educational content, which is used by health care professionals or students to fulfil a mandatory demand by their professional body or institute, is exempt from GS. And if the fee charged for the online portfolio management of health care professionals is exempt from GST 

“As both education and healthcare are exempt services, non-applicability of GST was sought on services provided to doctors to maintain professional standards as per guidelines issued by Medical Council,” said Harpreet Singh, Partner, Indirect taxes at KPMG in India. 

The ruling said that the online course is not a part of a curriculum required to obtain a degree from a recognised university and so it should be treated as any other online education. Under the GST framework, if a degree is provided through online it is outside the gamut of GST while a course or a training programme is not. 

“In this case exemption has been denied as the company per se did not provide any education services and were only acting as liaison offices between doctors and professional organisations and content providers on the other,” said Singh of KPMG. 

“The applicant per se does not provide any education to the professionals - the services provided by the applicant to the doctors and other health care professionals is not covered under any exemptions and hence is taxable,” the AAR ruled.