Karnataka AAR Holds GST Exemption for Charitable Activities Not Applicable to Professional Emergency Care Training Courses

Background and Application
The applicant, Jeeva Raksha Trust, a charitable trust registered under Section 12AA of the Income Tax Act, 1961, sought an advance ruling on the applicability of GST to fees received for conducting Comprehensive Emergency Care and Life Support (c-ECLS), Emergency Nursing Care and Life Support (ENLS), and Basic Care and Life Support (BCLS) courses. These courses, accredited by Rajiv Gandhi University of Health Sciences (RGUHS), are mandatory for students in affiliated medical, nursing, and allied health colleges. The applicant contended that its activities fall within the ambit of ‘charitable activities’ as defined under Notification No. 12/2017-Central Tax (Rate), and are thus exempt from GST.

Applicant’s Submissions
The applicant argued that its courses promote public awareness of preventive health, a category expressly covered under the GST exemption notification. Relying on definitions from medical literature and the National Health Policy, 2017, the applicant asserted that its training equips participants to act as first responders, thereby serving a public health function. The applicant also claimed that, alternatively, the courses form part of the curriculum of RGUHS and should be exempt under the notification’s provisions for educational institutions.

Court’s Analysis and Reasoning
The Authority for Advance Ruling (AAR) examined the statutory definition of ‘charitable activities’ under paragraph 2(r) of Notification No. 12/2017-Central Tax (Rate). The AAR emphasized that the exemption is narrowly tailored to activities involving public awareness of preventive health, family planning, or prevention of HIV infection, and must be construed strictly.

The AAR found that the applicant’s courses are specialized, structured training programs intended for a specific, identifiable group—students and professionals in the medical and allied health fields. These are not open to the general public and are mandatory academic requirements for graduation or certification. The AAR distinguished between public awareness activities, which are broad-based and directed at the general public (such as health campaigns and community outreach), and professional training, which is targeted, skill-based, and not within the scope of the exemption.

The AAR rejected the applicant’s reliance on medical definitions and policy documents, holding that such references cannot expand the statutory scope of the exemption. The Authority also noted that incidental public benefit or improved health outcomes resulting from professional training does not suffice to bring such activities within the definition of ‘charitable activities’ for GST purposes.

Findings on Educational Institution Exemption
The AAR further analyzed whether the applicant could qualify as an ‘educational institution’ under paragraph 2(y) of the notification. It concluded that the applicant does not provide pre-school or higher secondary education, nor does it offer education as part of a curriculum leading to a qualification recognized by law, or as part of an approved vocational course. Therefore, the applicant is not eligible for exemption under Entry No. 66 of Notification No. 12/2017-Central Tax (Rate).

Classification and Taxability
The Authority classified the applicant’s services under SAC 999293—Commercial Training and Coaching Services—taxable at 18% GST (9% CGST + 9% SGST). This classification applies to all fees received for the c-ECLS, ENLS, and BCLS courses, including renewals and courses offered to non-medical students.

Ruling
1. The activities of the applicant in relation to the c-ECLS, ENLS, and BCLS courses, including renewals, do not qualify as ‘charitable activities’ under the GST exemption notification and are liable to GST.
2. The BCLS course offered to non-medical students also does not qualify for exemption, and the applicant does not meet the definition of an ‘educational institution.’
3. All such services are classifiable as commercial training and coaching, attracting GST at 18%.

Conclusion
The Karnataka AAR’s decision clarifies that professional and skill-based training courses, even when provided by a registered charitable trust, do not automatically qualify for GST exemption as ‘charitable activities’ unless they are directed at the general public in the form of public awareness initiatives. The ruling underscores the need for strict interpretation of GST exemption notifications and provides clear guidance on the taxability of similar educational and training services.