In re Tamil Nadu Medical Council (GST AAR Tamilnadu)
In a recent ruling, the Tamil Nadu Authority for Advance Rulings (GST AAR) dismissed the advance ruling application filed by the Tamil Nadu Medical Council (TNMC). The application was rejected as it raised questions already under investigation by the Directorate General of GST Intelligence (DGGI), Chennai Zonal Unit, in accordance with Section 98(2) of the Central Goods and Services Tax (CGST) Act, 2017.
Background of the Case
The Tamil Nadu Medical Council had filed an application seeking an advance ruling on the liability to pay tax on services involving the collection of various fees. The application was made under Section 97(2)(e) of the CGST Act, 2017, which covers issues related to determining tax liability on services. TNMC sought clarification on whether it was liable to pay Goods and Services Tax (GST) on the collection of various fees from medical professionals and institutions.
Investigation by DGGI
During the application process, the GST AAR noticed that the Directorate General of GST Intelligence (DGGI), Chennai, had already initiated an investigation into the same matter. This was communicated via a letter received from DGGI dated April 3, 2023. The DGGI had launched an inquiry into the questions raised in TNMC’s advance ruling application, particularly regarding the collection of fees and its taxability under the GST framework.
