In re Tamil Nadu Nurses and Midwives Council (GST AAR Tamilnadu)
In a recent decision, the Tamil Nadu Authority for Advance Rulings (GST AAR) addressed the case concerning the Tamil Nadu Nurses and Midwives Council. The issue revolved around the Council’s collection of various fees and whether the amounts were subject to Goods and Services Tax (GST). However, a larger question regarding the admissibility of the application arose due to an ongoing investigation by the Directorate General of GST Intelligence (DGGI), Chennai Zonal Unit. The ruling provides clarity on procedural aspects under the CGST Act, 2017, specifically the treatment of “proceedings” in such cases.
Background of the Case
The applicant, the Tamil Nadu Nurses and Midwives Council, had approached the GST AAR seeking clarification on whether it was liable to pay GST on fees it collected. These fees included registration fees and examination fees, among others. As per Section 97(2)(e) of the CGST Act, 2017, advance rulings may be sought for determining tax liabilities in cases of service provision.
However, during the examination of the application, the AAR noted that the case was already under investigation by DGGI, Chennai. The AAR received a letter dated July 28, 2022, from DGGI, which confirmed that the matter was being scrutinized. This triggered a crucial aspect under Section 98(2) of the CGST Act, which restricts the admission of applications already under investigation.
Admissibility Under Section 98(2) of CGST Act
According to Section 98(2) of the CGST Act, an advance ruling application must be rejected if the issue in question is already subject to investigation or has been decided upon in any other proceedings under the Act. The purpose of this provision is to avoid duplication of efforts and conflicting decisions by different authorities.
