No GST Exemption On Pure Services Received By AIIMS From Vendors: AAR
Mariya Paliwala
19 Feb 2024 8:00 PM IST
The Telangana Authority of Advance Ruling (AAR) has ruled that All India Institute of Medical Sciences (AIIMS) can claim GST Exemption on pure services received from Vendors.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed 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...
The Telangana Authority of Advance Ruling (AAR) has ruled that All India Institute of Medical Sciences (AIIMS) can claim GST Exemption on pure services received from Vendors.
The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed 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 GST exemption Notification 12/2017 was 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.
The applicant, AIIMS is the one of the newest additions to the prestigious All India Institute of Medical Sciences (AIIMS) network in India, located in Bibinagar, a town in the Yadadri Bhuvanagiri district of the Indian State of Telangana, AIIMS Bibinagar was established to address the growing demand for high-quality healthcare, medical education and research in region.
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. AIIMS is currently paying GST at a rate of 18%. However, in compliance with the provisions of the GST Act, it is reversing the entire Input Tax Credit (ITC) availed by us since They are providing exempt services. The GST paid to vendors is consequently remitted to the Government, and it, in turn, supports the organisation financially.
The applicant sought the advance ruling on the issue whether All India Institute of Medical Sciences can claim GST Exemption on pure services received from Vendors.
The AAR held that GST is payable by AIIMS on pure services received from Vendors as it is a Governmental Authority.
Case No. TSAAR Order No.04/2024
