Order Date – 15 April 2024

Facts –

• The Applicant, M/s. Elsevier BV, is providing the services under the category of online information and database access or retrieval (OIDAR) services; engaged in the business of providing online content such as educational periodicals, online journals, online books and online newspapers, videos to various educational institutions, corporates and individuals; supplies services i.e., different products (namely Clinical Key, SSRN, JCol etc.) to different types of customers. The applicant is seeking the rate of tax/ exemption on the supplies under Clinical Key subscription product supplied to specified customers (educational institutions).

Issue –

• Whether GST is exempted on the supplies under Clinical Key subscription product supplied to educational institutions?

Order –

• The AAR observed that 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.
• It is seen that 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 it is seen that 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.
• Since 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.
• 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.