2024 (2) TMI 649 - AAR - GST

Eligibility for GST Exemption by All India Institute of Medical Sciences - pure services received from Vendors - Applicant is Governmental Authority - HELD THAT - The applicant is not 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.

Summary

Issues involved:
The issue involves determining whether All India Institute of Medical Sciences can claim GST exemption on pure services received from vendors.

Summary:

Background:
M/s. All India Institute Of Medical Sciences (AIIMS) filed an application under Section 97(1) of TGST Act, 2017 for an Advance Ruling. The queries raised by AIIMS fall within the ambit of Section 97 of the GST Act.

Facts of the Case:
AIIMS Bibinagar, an institution dedicated to healthcare and education, has contracts with entities for services like housekeeping, security, and chartered accountant services. AIIMS pays GST at 18% but reverses the Input Tax Credit availed due to providing exempt services.

Questions Raised:
AIIMS asked whether it can claim GST exemption on pure services received from vendors charging GST at 18%.

Personal Hearing:
Authorized representatives of AIIMS attended the personal hearing and reiterated their case.

Discussion & Findings:
AIIMS claimed exemption based on being a Central Government institution, supported by evidence from the AIIMS Act 1956 and Ministry of Health & Family Welfare. However, the Authority ruled that AIIMS is not eligible for exemption under the relevant serial numbers of Notification 12/2017.

Ruling:
The Authority ruled that All India Institute of Medical Sciences cannot claim GST exemption on pure services received from vendors.