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TMI Blog2019 (7) TMI 1195X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 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 Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey 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 wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otality. ii. 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. iii. In a situation if above questions are answered against the contention of the applicant institution then following further questions are being raised for the kind consideration by the Honourable Bench. a. 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 essent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered with reference to the status of Applicant Society, where its main activity of Medical Education is substantially funded by the Government as a joint venture and then to decide whether the said Society can be brought within the ambit of the provisions of the CGST/MGST Act, particularly when there is no business activity carried out by the society. The related salient features are as under. a. Background of the Society vis-a`-vis the purpose of existence. i. The constitution of India had promised implementation of effective health delivery system to the rural masses in general & those unprivileged in particular. Govt. of India had setup several Committees (Working Groups) with the task of finding out the practical modalities addressing the said issue in general & the reason for utter failure of Govt., in attracting qualified & trained Doctors for going & settling down in rural areas. ii. One of the solutions recommended was to establish an innovative medical institution in rural area, which would set forth the required modalities for training the Doctors, who would not only develop an aptitude but also a capacity to understand the deep-rooted socio-economic reasons w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itored and regulated by the different Universities under the broader umbrella of Medical Council of India (Here-in-after referred to as "MCI"). These Universities have laid down the detailed academic syllabus for Graduation and Post-Graduation studies through Statutes and every College is obliged to get affiliated with the concerned University in whose jurisdiction the said College falls. Besides academic syllabus, the standard and quality of imparting the medical education is also regulated by Medical Council of India. In absence of recognition by such regulators no medical personnel passing from such Medical College can practice in the field of medicine. vii. For grant of recognition, these regulators carry out inspection of the teaching facilities at College, on periodic basis and that too on subject to subject basis. For that matter, regulators have laid down norms specifying the floor area required for in housing teaching assignment, practical training for undertaking the operations, strength of teachers/nursing staff, their required academic qualifications/experience, requirements of teaching aids like equipment, implements, etc. which have to have complied with b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. caused by several reasons including infections through insects, bacterial, viral etc. to be essentially made available to the students and teacher for getting them educated with the wide spectrum having a focus on advanced mechanised diagnosis, management of drugs, rehabilitation but at an affordable cost. These varied essential clinical materials, can be made available only by admitting the persons suffering from these various diseases, in the teaching lab, carryout Investigations, laboratory tests, X-rays, Citi Scan for diagnosing the diseases in more precise way and for that purpose, MGIMS is maintaining and managing 1000 Beds for imparting the theoretical and practical bedside Medical Education. Such teaching labs accommodating the stipulated teaching beds in which the persons suffering from these various diseases is admitted is known as "Kasturba Hospital". The said teaching lab is an integrated part in imparting systematic medical education like other labs in other branches of education. Thus "Kasturba Hospital" is not an independent establishment in isolation or a Hospital rendering healthcare services only since it is a teaching lab for the students o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State within the meaning of Article-12 of the Constitution of India vide Judgment of the Hon'ble High Court of Judicature at Bombay, Nagpur Bench in the case of Ajay Gambhir (cited above)". Thus, the status of Kasturba Health Society as held by Judicial Forum is a "State". c. No activity being undertaken involving any profit motive neither carries on any business. i. Applicant Society is engaged in imparting the systematic education and training as per the syllabus stipulated by concern competent Authorities where MGIMS is the major activity of APPLICANT SOCIETY without having any profit motive or pre-designed factor of monetary gain and as such cannot be assumed to have engaged in carrying on any business. The scale of expenditure for running of MGIMS that is incurred for imparting the Education at affordable cost, runs over the Fees and charges recovered from Students and Patients. Substantial portion thereof is borne by Central and State Govt. This contention will be evident from the tabulated figures as under of last three years - Particulars FY 2015-16 FY 2016-17 FY 2017-18 Direct expenditure of Running of MGIMS 116,32,02,834 119,00,32,144 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side can collect any medicine or any other item from such storage. Thus, whatever amount is collected at different collection centres within the college premises is nothing but recovery of Hospital Charges in instalments against issuance of receipts which does not amount to a realisation of sale proceeds for goods or services. Needless to mention that this process is modality to recovery the Hospital Charges at different points, different times for different heads for different inputs necessitated for investigation, diagnosis, medical treatments, surgical or procedures and that too keeping in mind the sole purpose of Convenience of Patient. iv. In order to maintain the teaching lab -The following activities are carried out are as under; a. The clinical materials (patients) are examined and the reasons, causes, symptoms and history of the sufferings is jotted down and making comparative thereof is done in OPD which is further supported by the pathological or microbiological or radiology investigations, and if necessary further investigation on highly technical and advanced equipment such as CT-Scan, MRI, Colour Doppler, Angiography, Gastro scope, Sonography and so on. If felt ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of subsidised cost of medical treatment. e. In order to retain the inflow of sufficient clinical material for the purpose of medical education, the Society was already charging concessional rates for investigations, treatment and cost of medicines [Here-in-after referred as recoupment charges]. Further the teachers (Doctors) were empowered to waive partly or fully such recoupment charges towards consumed medicines and other items. Meanwhile, the Charity Commissioner by enforcing the provisions of Sec.41D of B.P.T. Act, 1950 made mandatory to administer the medical treatment free of cost to 10% of the intake capacity. Subsequently State & Central Govt. have stipulated to provide medical treatment at concessional rate to the patients falling within "BPL" category. f. RESEARCH WORK PURSUED Beside practical work on field the teachers and students are propagating their findings through Seminars, Workshops etc. & thus many countries having taken cognizance of the said research invited them in various workshops, seminars and conferences for sharing their knowledge with others. Further the findings of research in the field of medicines is recognised by domestic as well as i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Registration Number of the Applicant Institution. In this scenario the society without having the GST registration No. was facing the difficulties and in order to overcome these issues, has applied for voluntary registration and as a result got registered with GSTN having registration No. 27AAATK2046G1ZV with effect from 21st July 2017. The copy of registration certificate and application is annexed herewith. iii. Though the applicant society got registered voluntarily under GST for the reasons mentioned above, it has not filed any returns since none of the activity was in the nature of "business" so as to fall within the meaning of "supply" as provided in section 2(87) of the GST Act and hence it is believed in bona fide that it is not obliged to comply with the provisions of GST Act. iv. However the jurisdictional GST authorities have issued one after another notices to the applicant society for adhering to the compliance with an obligation of filing of returns & therefore the applicant institution enquired with other Institutions, those who are having engaged in similar activity, where it is learnt that none of them is registered under GST act & furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trary view in following cases:- * Apex court in case of Sai Publication Fund 4 SCC 7 (SC) = 2002 (3) TMI 45 - SUPREME COURT - decided that in respect of sale of books, booklets, pamphlets, photos, stickers and other publications containing message of Saibaba and the turnover of such publication cannot be assessed to sales tax under the BST Act, on the facts & in the circumstances of the present case irrespective of the profit motive, it could not be said that the Trust either was a "dealer" or was carrying on trade, commerce etc. The Trust is not carrying on trade, commerce etc., in the sense of occupation to be a "dealer" as its main object is to spread message of Saibaba of Shiridi. * In case of Indian Institute of Technology v. State of U.P. [(1976) 38 STC 428 - Allahabad HC = 1974 (2) TMI 72 - ALLAHABAD HIGH COURT - observed that the statutory obligation of maintenance of the hostel which involved supply and sale of food was an integral part of the objects of the Institute. Nor could the running of the hostel be treated as the principal activity of the Institute. The Institute could not be held to be doing business. * In Dy. Commissioner (C.T.) v. Sout ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evy of Tax on Services] The Finance Act 1994, also attempted to cover various services provided by the Charitable Institution those having commercial sense within its ambit and levied the Service Tax on the services rendered by them primarily on the value of consideration. However, while levying tax the Services beyond the scope of Business or commercial nature are excluded and even those having flavour of commercial activities are also excluded to the larger extent by providing specific exemptions like those having registration U/S 12AA of the Income tax Act 1961. IV. Under the GST Regime. a. Even the GST Act is also not making any departure from the basic concept where the activity of Charitable Institution having the flavour of business is proposed to be taxed which is evident from the scope of Section 2(17) of The CGST Act defining "'Business" that gives the context to the above-mentioned term just like in earlier Tax laws, where the effective tax to be paid is always on business transaction only. b. A perusal of the definition of "outward supply" under MGST/CGST further clarifies this proposition where, as per Section 2(83) "outward supply& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t; includes a. Any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit: b. An activity or transaction in connection with or incidental or ancillary in sub-clause (a); c. any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; d. Supply or acquisition of goods including capital goods and sends in connection with commencement or closure of business; e. Provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; f. Admission, for a consideration, of persons to any premises; g. Services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation: h. Services provided by a race club by way of totalisator or a licence to book maker in such club; and i. An activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged us public authorities; Fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply. This definition gives context to the abovementioned term just like in any value-added taxation system, even in the case of GST Law, the effective tax to be paid is always on business transaction only. Therefore, it is very clear, that only commercial transactions are taxable. If any activity whether made or agreed to be made is neither for continuity of business nor for advancing/furtherance of the same, such a transaction, will not be a supply at all. Further Section 16(1) in the context of eligibility of Input Tax credit again use the said the term which essentially signifies continuity in relation to a specified activity, whereas "in furtherance or' means anything done which assists or advances a particular act. Therefore, in simple words, the phrase "in the course of or furtherance of business" means something which is done during the continuance or for providing further assistance in advancing the overall business. The intention of the legislature is very clear that tax is payable only on any business transaction to facilitate seamless continuity. 1.03. Departmental Clarification with reference to Charitable Institutions. I. Press Release relating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be liable to GST. Income from a religious ceremony organized by a charitable trust is exempt as per the above notification. So, the income from Navratri functions, other religious functions, and religious poojas conducted on special occasions like religious festivals by persons so authorized for this purpose by the charitable or religious trust are exempt from GST. But a careful perusal of this exemption shows that all income from such a religious ceremony is not exempt. Therefore, the nature of income is an essential factor for ascertaining whether it will be taxable or exempt. If income loses its religious nature, it is definitely chargeable to GST. For example, if with regard to Ganesh utsav or other religious functions, charitable Institution rent out their space to agencies for advertisement hoardings, income, from such advertisement is chargeable to GST, as this will be considered as income from the advertisement services. Further, if donation for religious ceremony is received with specific instructions to advertise the name of a donor, such donation income will be subject to GST. But if donation for religious ceremony is received without such instructions, it may not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above criterion and hence it enjoys Undisputed status as "educational institution" and thus qualify for remaining out of the scope of the provisions of GST Law. 1.05. Applicant institution's factual status in the context of GST Act, judicial pronouncement, determination of disputed questions under earlier laws, Material published by the GST Council/Others and further to the matter decided in advance ruling under the present GST Law so far. The applicant institution is aware of the verdict of judicial pronouncement, determination of disputed questions under earlier laws and matter decided in advance ruling under the present GST Law where it is held that though the institutions is charitable one but having regard to the nature of activity it is decided that those activities amounts to carrying on business & as such are liable to be registered in the earlier and present law. However on distinguishing the factual position of Applicant Institution with those one where the matter is decided against those Institution, it would be imperative to note that the status and activity of the Applicant Institution is altogether different and as such cannot be equated with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as charitable only & not business. The Supreme Court held that where the main & dominant activity of the assessee Society in that case was to spread message of Sai Baba, then bringing out publications & sale thereof by the assessee Society to its devotees at cost price did not amount to business. ii. Hon'ble Supreme Court in the case of CIT Vs. Gujarat Maritime Board (2007) 14 SCC 704 (SC) = 2007 (12) TMI 7 - SUPREME COURT , where in the Hon'ble Supreme Court held that if the primary or predominant object of the Society is charitable, any other object which might not be charitable but which is incidental or ancillary to the dominant object will also be considered as charitable. iii. Bombay High Court in case of Commissioner of Sales Tax vs. Cutchi Dasha Oswal Mahajan Udyog Committee (36 STC I) (Bom). = 1975 (1) TMI 74 - BOMBAY HIGH COURT In this case also, the Charitable Society was employing destitute women for preparing the eatables & such eatables were sold at market price. Hon. High Court has held that such activity' is for carrying out of main object of helping poor & needy women therefore even if sale is at profit & at normal rate still it will be incidental a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buying or selling of the books and the CDs are integrally connected with the objects of the Trust. The secondary activities were integrally connected with the objects of the Trusts. The applicant is not a dealer for the purposes of the MVAT Act 1.07. The Applicant Institution cannot be held as having carrying on any Business. From the above and having regard to the activity of Applicant Institution it would be clear that: i. The sole objective of the applicant being attending the health need of rural India through medical education and that too with the joint participation of Central Government (50%) and State Government (25%) the applicant cannot be said to be carrying out "business" as defined in Section 2(17) of the CGST Act, 2017. ii. Further as discussed above if the main activity is determined as not business, in such a case, any other activity whether incidental or ancillary cannot be held to be a supply exigible to tax since such activity is neither in the course of nor in furtherance of business and rather it is a non-business activity undertaken for carrying out the main object of the institution and thus the income received in form of realisation fromdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, in any case, providing exemptions cannot go beyond the definition clause of 'business'. Unless the entity falls within the meaning of 'business' it cannot be subjected to tax based on any other criteria and therefore exemption would be the last resort. b. In alternative the applicant submits that, even by any stretch of imagination if it is treated that the activity of applicant institution amount to providing services falling within the scope of Supply then the receipt from students is in the course of imparting medical education which according to scope of GST Act falls within the category of Service provided by an "Educational Institution" to its students, faculty, staff in terms of Notfn 12/2017 C.T.-dt. 28/6/2017 at Sr. No 66 which is exempt supply. c. Further the nominal charges received from the patients (who is an essential clinical material for education laboratory) would fall within the category of "educational services: and even after further stretching it would fall within the meaning of Health care service by a clinical establishment in terms of Notification 12/2017 Central Tax -dt. 28/6/2017 at Sr. No 74 which is again an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in certain cases - Section 24 of CGST Act 2007 provides for Compulsory registration in certain cases as under Notwithstanding anything contained in sub-section (l) of section 22, the following categories of persons shall be required to be registered under this Act, i. Persons making any inter-State taxable supply; ii. Casual taxable persons making taxable supply; iii. Persons who are required to pay tax under reverse charge; iv. Persons who are required to deduct tax under section 51, whether or not separately registered under this Act; v. such other person or class of persons as may be notified by the Government on the Recommendations of the Council Since the applicant institution does not fall within any of the above category and hence not liable to obtain registration u/s 24 of the CGST act. From the above it would be clear that the applicant institution is neither liable for registration u/s 22 (l) nor under the compulsory registration provision u/s 24 and thus in terms of exception provided by Section 23 and further clarification by the GST council the applicant institution is not liable for registration u/s 22 or u/s 24 of the CGST act and hence the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medics; * It is provided in clause 2 definition at item no. (zg) which defines "health care services" means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma; * Further clause 2 of definition at item no. (s) defines "clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases; b. As stated above in facts that in order to provide medical education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w at one end for the purpose of imparting medical education and in alternative provide them the benefit of affordable and concessional rates for investigations and treatment at other end would fall within the meaning of "supply" eligible for exemption under the category of "health care services." It is submitted that in order to comply with such mandatory requirements of medical education, the Society had to attract the patients by providing patient's friendly atmosphere equipped with the teaching lab with the advance equipment, implements, apparatus & qualified experts as well as trained medical personnel, & at the same time had to provide medical treatment, at affordable cost to the rural population. For this purpose, Applicant Society have floated several schemes which inter alia includes Unparallel Health Insurance Scheme prescribing a premium of Re. l/- per year per resident of the concerned village & Tor urban population ₹ 500/- for entire year for a family comprising of five members which ensures the substantial concession to them during the course of treatment of illness through OPD or through admitting them in hospital. Such charges are in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes contrary to these Judgements since the Applicant Institution was specifically excluded from the Scope of Dealer in the light of Exception II to section 2(8) which inter alia excluded the "Educational institution" carrying on the activity of Buying, Selling, manufacturing in performance of its function for achieving its object and the Institutions is still covered by the scope of "Educational Institution". In view this it is imperative that the facts of the Applicant Institution are to be looked into, which are completely different, since it falls within the scope of Educational Institution and such any receipt under the category of supply is exempt. iii. Though in various judicial pronouncement have held that the charitable institutions fall within the meaning of definition dealer but the applicant society's fact are different since no activity of commercial nature is being carried on and as such the facts of the society cannot be correlated/equated with those cases where the decision is given against the society and therefore the facts of the society are distinguishable with those one. iv. It is beyond doubt that the applicant Society is not obliged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services, performed in such educational Institution; (iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary: Provided that nothing. contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Nil Nil 74 Heading 9993 Services by Way of (a) health care services by a clinical establishment, an authorized medical practitioner or paramedics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. Nil Nil (11) Notification no, 09/2017-lntegrated tax (rate) dated 28.06.2014 at Sr. No. 77. Sr. No Chapter, No. Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 77 Heading 9993 Services by Way of (a) health care services by a clinical establishment, an authorized medical practitioner or paramedics; (b) services provided by way of transporta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e patients including the retention money and the fee/payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempt, (3) Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. In view of above notifications and circular it is observed that the services rendered by an educational institution to its students, faculty and staff etc. and the health care services provided by a clinical establishment, an authorised medical practitioner or para-medics are exempted from payment of GST. However, as per above mentioned circular It is clarified that the food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable but other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. II. Whether, the amount received for renting of space for banking, parking & refreshment & amount received on account of disposal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. (2) Every person who, on the day immediately preceding (he appointed day, is registered or holds a licence under an existing law; shall be liable to be registered under this Act with effect from the appointed day. (3) Where a business carried on by a taxable person registered under this Act is transferred: whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession. (4) Notwithstanding anything contained in sub-sections (l) and (3), ……………….. 23. Persons not liable for registration (I) The following persons shall not be liable to registration, namely:-- (a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tar or wholly exempt from tar under this Act or under the IGST Act; (b) an agriculturist; to the extent of supply of produce out of cultivation of land. (2) The Government may, on the recommendations of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rba Health Society and the remaining five Members are nominated by Central and State Governments. From the above we find 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. Further, the applicant has cited some judicial decisions and have arrived at the conclusion that Judicial Authorities have already held that Applicant Society is a 'State' under Article-12 of Constitution of India. As per their submissions, the High Court of Judicature at Bombay, Nagpur Bench, Nagpur in the case of Ajay Gambhir & Ors. V/s Dean, Mahatma Gandhi Institute of Medical Sciences, Sevagram & Ors., 1985 Maharashtra Law Journal, P-597 = 1985 (3) TMI 314 - BOMBAY HIGH COURT as well as in the case of B.M. Vidhwans V/s Nagpur University (S.C.A. No. 1753 of 1977 decided on 16/18th July, 1980) observed (Para-II) that - "Thus, we see no difficulty whatsoever in holding that Respondent no.12, i.e., (MGIMS) is a "State" within the meaning of Article 12." Vide para 12 of the said Judgment, their lordship ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich 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". Question No. (ii) 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 In view of the foregoing observations made by us, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12/2017 Central Tax - dt. 28/6/2017. From the submissions made by the applicant we find 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. Question No. (iii)(b) 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." From the submissions made by the applicant we find 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t;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. Answer :- In view of the discussions made above 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 is an entity different from that of the applicant. Hence, the applicant cannot be said to be satisfying all the criteria of an "Educational Institution". Question 2:- 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 purview of registration in view of the provisions of section 23 of the said act as there is no Taxable supply. Answer :- As applicant has been found to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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