The Telangana Authority for Advance Ruling ( TAAR ) has ruled that All India Institute of Medical Sciences ( AIIMS ) could not claim Goods and Service Tax exemption on pure services received from the vendors.
The applicant, AIIMS is the one of the newest additions to the prestigious All India Institute of Medical Sciences ( AIIMS ) network in India. AIIMS Bibinagar, Like its counterparts, is committed to offering top-tier medical education and training programs. It aims to produce skilled healthcare professionals who can meet the evolving healthcare needs of the nation. The institution is equipped with modern infrastructure and state – of – the – art facilities to medical education.
AIIMS, being an institution dedicated to healthcare and education, has entered into contracts with several entities for services. Regarding these contracts, AIIMS is currently paying GST at a rate of 18%. However, in compliance with the provisions of the GST Act, they are reversing the entire Input Tax Credit ( ITC ) availed by us since they are providing exempt services. The GST paid to our vendors is consequently remitted to the Government, and it, in turn, supports our organization financially
The applicant has sought an advance ruling in respect to the claim GST Exemption on pure services received from Vendors.
G.V. Satish, Account officer & Sri. Suresh Kumar, CA & AR attended the personal hearing held on 29.11.2023. The authorized representatives reiterated their averments in the application.
They argue that the applicant is purchasing pure services such as Man power supply, Security Services & Accountancy Services. The vendors of these Services are charging GST at the rate of 18% on the services supplied.
Being an education institution their Output service is exempt and therefore they are reversing the Input tax credit amount into Rs.2 to 3 Crs annually. They submitted that their Institution is Central Government. And hence supplies made to their Institution are exempt under entry 3 & 3A of Notification 12/2017.
It was observed from the discussion that the applicant is not the Central Government but a “Governmental Authority” as it is established by the Government by the Act of Parliament. The Sl.No. 3 & 3A of Notification 12/2017 as amended with effect from 01.01.2022 have omitted the phrase Governmental Authority from the description of the services. Hence the applicant is not eligible for exemption under these two serial numbers.
The two member bench of Authority of Advance Ruling comprising S.V. Kasi Visweswara Rao ( Additional Commissioner commercial Taxes ) and Sahil Inamdar, I.R.S ( Additional Commissioner Custom & Indirect Taxes ) held that All India Institute of Medical Sciences could not claim Goods and Service Tax Exemption on pure services received from the vendors.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
