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2019 (7) TMI 1195 - AAR - GSTEducational Institution - Charitable Society having the main object and factually engaged in imparting Medical Education - compliance with the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 or not - requirement of registration - no taxable supply - distinct persons - HELD THAT - The applicant and MGIMS can be considered as distinct persons since MGIMS is a joint project between the applicant and the State/Central Govts. Thus the educations services are seen to be rendered by MGIMS and not the applicant. The Judicial Authorities have already held that Applicant Society is a 'State' under Article-12 of Constitution of India. MGIMS has been considered a State, within the meaning of Article 12, by the Hon'ble Court. It is not that Kasturba Health Society has been considered as a 'State'. The conclusion drawn by the applicant that they can also be considered as 'State' is not correct since it is also seen that the Respondent in the above case mentioned by the applicant is MGIMS and not the applicant. Hence, both the applicant and MGIMS are not one and the same organization. Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of Educational Institution , can be said to be engaged in the business so as to cast an obligation upon it to comply with the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 in totality? - HELD THAT - It is MGIMS which appears to be engaged in imparting Medical Education and not the applicant. The applicant has entered into a joint project with the State and Central Governments to form MGIMS which has a different form from that of the applicant. Hence, the applicant cannot be said to be satisfying all the criteria of an Educational Institution . Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of Educational Institution is liable for registration under the provisions of section 22 of the Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 or it can remain outside the preview of registration in view of the provisions of section 23 of the said act as there is no Taxable supply? - HELD THAT - We do not agree with the applicant's contention that they are imparting Medical Education and satisfying all the criteria of an Educational Institution - Scheme GST being a tax on the event of 'supply' every supplier needs to get registered. However, as per the scheme of the Act, not every supplier is required to get registered. Only those suppliers, whose aggregate turnover of all supplies exceeds the threshold limit as prescribed under Section 22 (including exempted and taxable supplies). Thus to be registered a person satisfies two conditions namely, supply of taxable goods or services or both and aggregate turnover in a financial year exceeds threshold limit. Thus a person who is engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax is not liable for registration under Section 22 of the GST Act. Thus even without referring to section 23 of the Act, we can say that a person, whose aggregate turnover of all supplies is other than taxable supply, is not liable for registration - The applicant has not given details of the business conducted by it and therefore considering the fact that it is MGIMS and not the applicant who are imparting Medical Education, the liability of the applicant to obtain registration will depend on the facts and circumstances of their business. Whether the fees and other charges received from students and recoupment charges received from patients (who is an essential clinical material for education laboratory) would constitute as outward supply as defined in section 2 (83) of The Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 and if yes then whether it will fall in classification entry at Sr. No 66 or the portion of nominal amount received from patients (who is an essential clinical material for education at Sr. No. 74 in terms of Notification 12/2017 Central Tax - dt. 28/6/2017? - HELD THAT - Such fees and other charges and recoupment charges appear to be collected by MGIMS/Kasturba Hospital. Since the supply in this case is not done by the applicant, as per Section 95 of the CGST Act, they cannot apply for advance ruling and the same is outside the purview of this authority. Whether the cost of Medicines and Consumables recovered from OPD patients along with nominal charges collected for Diagnosing by the pathological investigations, other investigation such as CT-Scan, MRI, Colour Doppler, Angiography, Gastroscopy, Sonography during the course of diagnosis and treatment of disease would fall within the meaning of composite supply qualifying for exemption under the category of educational and / or health care services? - HELD THAT - Such fees and other charges and recoupment charges appear to be collected by MGIMS/Kasturba Hospital. Since the supply in this case is not done by the applicant, as per Section 95 of the CGST Act, they cannot apply for advance ruling and the same is outside the purview of this authority. Whether the nominal charges received from patients (who is an essential clinical materials for education laboratory) towards an Unparallel Health Insurance Scheme to retain their flow at one end for the purpose of imparting medical education as a result to provide them the benefit of concessional rates for investigations and treatment at other end would fall within the meaning of supply eligible for exemption under the category of educational and / or health care services? - HELD THAT - It is not clear from the submissions as to who is receiving such nominal charges from patients. From the submissions made by the applicant we find that such charges appear to be collected by MGIMS/Kasturba Hospital and since the supply in this case is not done by the applicant, as per Section 95 of the CGST Act, they cannot apply for advance ruling and the said matter is outside the purview of this authority. Whether the nominal amount received for making space available for essential facilities needed by the students and staffs such as Banking, Parking, and Refreshment which are support activities for attainment of main activities and further amount received on account of disposal of wastage would fall within the meaning of supply qualifying for exemption under the category of educational and/or health care services? - HELD THAT - It is not clear from the submissions as to who is receiving such nominal amounts from students and staff. From the submissions made by the applicant we find that such amounts appear to be collected by MGIMS/Kasturba Hospital and since the supply in this case is not done by the applicant, as per Section 95 of the CGST Act, they cannot apply for advance ruling and the said matter is outside the purview of this authority.
Issues Involved:
1. Whether the applicant, a Charitable Society engaged in imparting Medical Education, is engaged in business under GST laws. 2. Whether the applicant is liable for registration under Section 22 or can remain outside the purview of GST registration under Section 23. 3. Specific queries regarding fees and charges received from students and patients, and their classification under GST. Detailed Analysis: Issue 1: Engagement in Business under GST Laws The applicant, a Charitable Society, claimed that it is engaged in imparting Medical Education and should be considered an "Educational Institution." The Authority found that it is Mahatma Gandhi Institute of Medical Sciences (MGIMS), a joint project with the State and Central Governments, which is engaged in imparting Medical Education, not the applicant. Therefore, the applicant does not satisfy the criteria of an "Educational Institution." Issue 2: Liability for GST Registration The applicant contended that it should not be liable for registration under Section 22 of the GST Act as it does not make taxable supplies. The Authority noted that since the applicant is not an educational institution, it falls under the scope of Sections 22 or 24 of the GST Act. If the applicant provides taxable services and its turnover exceeds the threshold limit, it is liable to obtain registration. Specific Queries: - Query (iii)(a): Fees and Charges from Students and Patients The Authority found that such fees and charges are collected by MGIMS/Kasturba Hospital, not the applicant. Therefore, the applicant cannot seek an advance ruling on this matter as per Section 95 of the CGST Act. - Query (iii)(b): Cost of Medicines and Consumables Similar to the above, the Authority noted that these charges are collected by MGIMS/Kasturba Hospital. Hence, the applicant cannot seek an advance ruling on this matter. - Query (iii)(c): Nominal Charges for Health Insurance Scheme The Authority could not determine who receives these charges. However, it inferred that MGIMS/Kasturba Hospital collects these charges, making the query outside the applicant's purview for an advance ruling. - Query (iii)(d): Nominal Amounts for Facilities and Disposal of Waste The Authority noted that these amounts are collected by MGIMS/Kasturba Hospital. Therefore, the applicant cannot seek an advance ruling on this matter. Conclusion: - The applicant is not considered an "Educational Institution" under GST laws. - The applicant is liable for GST registration if it provides taxable services and its turnover exceeds the threshold limit. - Specific queries regarding fees and charges from students and patients, cost of medicines and consumables, nominal charges for health insurance schemes, and amounts for facilities and waste disposal are not maintainable as they pertain to MGIMS/Kasturba Hospital, not the applicant.
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