Indian Medical Association, Kerala State Branch vs. Union Of INDIA
Held
The Court declared that Section 7(1)(aa) of the CGST Act, 2017, and corresponding KGST provisions, would have prospective operation from 01.01.2022. It directed the petitioners to respond to the impugned show-cause notices and remanded the matters to the authorities for completing the assessment.
Facts
The Indian Medical Association, Kerala State Branch, challenged GST show-cause notices regarding admission fees and contributions to mutual benefit schemes for its member doctors. The association, registered under a Charitable Societies Act, contended that these activities did not constitute 'supply' under GST, unlike its other commercial ventures for which it already remitted tax.
Key Issues
The key issues were the constitutional validity of Section 2(17)(e) and Section 7(1)(aa) of the CGST Act, 2017, and its explanation, and alternatively, the constitutionality of the retrospective effect of Section 7(1)(aa) from 01.07.2017, in relation to mutual benefit activities of associations.
Sections Cited
Section 2(17)(e), Section 7(1)(aa)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 23RD DAY OF JULY 2024 / 1ST SRAVANA, 1946 WP(C) NO. 23853 OF 2023 PETITIONER: INDIAN MEDICAL ASSOCIATION, KERALA STATE BRANCH, AGED 57 YEARS REPRESENTED BY ITS SECRETARY DR. JOSEPH BENAVEN, IMA STATE HEAD QUARTERS, BYPASS ROAD, ANAYARA P.O., THIRUVANANTHAPURAM, PIN - 695029 BY ADVS. GEORGE VARGHESE(PERUMPALLIKUTTIYIL) MANU SRINATH NIMESH THOMAS SREELAKSHMI R.NAIR RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN - 110001 2 STATE OF KERALA, REPRESENTED BY THE SECRETARY, DEPARTMENT OF FINANCE, GOVERNMENT SECRETARIAT, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM, PIN - 695001 3 GST COUNCIL, GST COUNCIL SECRETARIAT,5TH FLOOR, TOWER-II, JEEVAN BHARTI BUILDING,JANPATH ROAD, CONNAUGHT PLACE,NEW DELHI, PIN - 110001 4 ADDITIONAL DIRECTOR GENERAL, DIRECTORATE GENERAL OF GST INTELLIGENCE, KOCHI ZONAL UNIT, 1ST FLOOR, CENTRAL EXCISE BHAVAN, KATHRIKKADAVU, KOCHI, PIN - 682017 5 DEPUTY DIRECTOR, DIRECTORATE GENERAL OF GST INTELLIGENCE, KOZHIKODE REGIONAL UNIT, MAHE HOUSE, PANICK
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