GST Exemption on Pure Services to Statutory Medical University: Allahabad HC to decide Issue [Read Order]

The Allahabad High Court will decide whether GST ( Goods and Services Tax ) can be levied on pure services provided to a statutory medical university established under a State legislation.

A writ petition filed by M/s A.N. Kapoor Janitors Pvt. Ltd., which challenged the appellate order dated 16 July 2025 rejecting its plea for GST exemption under Notification No. 12/2017–Central Tax (Rate).

According to the petitioner, the services it provides to Sanjay Gandhi Post Graduate Institute of Medical Sciences (SGPGI) constitute “pure services” falling under Chapter 99 and are expressly exempt from GST when supplied to a “Government authority” under Entry No. 3 of the exemption notification.

It was argued that SGPGI, being created under the Sanjay Gandhi Post Graduate Medical College Act, 1983, is a statutory body squarely covered by the definition of “Government Authority” contained in the amended notification dated 13 October 2017.

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The petitioner contended that once the recipient is a statutory body and the services fall within the exempt category, the State tax authorities lacked competence to levy GST, making the appellate dismissal unsustainable.

The State, however, sought time to file a counter affidavit.

Justice Jaspreet Singh, considering the submissions and the materials on record, observed that the petitioner’s argument regarding statutory exemption appeared to carry substance and therefore required judicial consideration.

Therefore, the Court granted interim protection by staying the operation of the adjudicating authority’s order dated 16 July 2025 until the next date of listing.

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