Gujarat HC Halts GST Proceedings Against Medical Councils
Summary: The Gujarat High Court has temporarily suspended GST proceedings against the state’s medical councils and regulatory boards. These bodies oversee medical practitioner registrations and argue they serve the public interest and should be exempt from GST. The court has asked the GST department to respond by May 1.
Are Medical Councils Liable for GST? High Court Weighs In
In a major relief for medical regulatory bodies in Gujarat, the High Court has issued a stay on GST proceedings initiated by the Directorate General of GST Intelligence (DGGI). The case revolves around whether these statutory bodies should be taxed under GST for their services.
Who’s Involved?
The entities affected by this decision include:
- Gujarat Medical Council
- Council of Homeopathic System of Medicine
- Gujarat Board of Ayurvedic & Unani System of Medicine
- Gujarat State Dental Council
- Gujarat State Council for Physiotherapy
Why Were They Issued GST Notices?
The DGGI issued notices under Section 74 of the GST Act, arguing that these councils act as corporate entities, hold GST registrations, and charge fees for services, making them taxable.
The Argument Against GST
The councils countered, asserting that they are statutory bodies created under specific laws.
- Their primary function is to regulate medical practitioners, not to operate as profit-driven businesses.
- Since they serve the public interest, they argue they should be exempt from GST.
According to reports, the councils filed petitions in the Gujarat High Court, seeking to quash the GST notices. Advocate Neel Lakhani, representing the DGGI, confirmed that the case hinges on whether these bodies qualify as “taxable persons.”
High Court’s Response
A division bench comprising Justice Bhargav Karla and Justice D. N. Ray reviewed the petitions and issued a stay on GST proceedings. The court has directed the GST department to respond by May 1 and has prohibited any coercive action until further notice.
This case will set a crucial precedent for whether statutory medical councils across India should be taxed. For now, these bodies have temporary relief, but the final ruling could impact regulatory boards nationwide.
Source: Inputs from various media Sources
Priya Bairagi
I’m a pharmacist with a strong background in health sciences. I hold a BSc from Delhi University and a pharmacy degree from PDM University. I write articles and daily health news while interviewing doctors to bring you the latest insights. In my free time, you’ll find me at the gym or lost in a sci-fi novel.
