Ahmedabad: The Gujarat excessive court docket on Thursday stayed the Items & Providers Tax (GST) division from taking any action against 5 totally different councils and boards that regulate and register practitioners of various programs of drugs within the state over cost of taxes.
Based on the case particulars, the director common of GST Intelligence (DGGI) issued notices to the Gujarat Medical Council, the Council of Homeopathic System of Medication, the Gujarat Board of Ayurvedic and Unani System of Medication, the Gujarat State Dental Council and the Gujarat State Council for Physiotherapy beneath Part 74 of the GST Act.
It acknowledged that these our bodies are corporates and have GST numbers as properly, for they supply providers in lieu of charging charges. Therefore, their providers are taxable beneath the GST legislation.
After getting skilled opinion, these councils and boards replied to the division and conveyed that they don’t seem to be liable to pay GST as a result of they don’t seem to be personal company our bodies however have been shaped beneath the statutes they usually act as prolonged govt our bodies. Nevertheless, the division insisted that these councils and boards will not be govt firms, however physique corporates and subsequently are liable to pay taxes on the providers they provide.
Based on advocate Neel Lakhani, who appeared for DGGI, the councils and boards filed petitions within the HC claiming that they don’t seem to be taxable individuals and demanded that the communication issued by the GST division be quashed.
After a preliminary listening to, Justice Bhargav Karia and Justice D N Ray issued a discover looking for a reply from the division by Could 1, and directed the division to not take any coercive action against the petitioners till then.
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