In re Odisha State Medical Corporation Limited (GST AAR Odisha)
The Odisha Authority for Advance Ruling (AAR) has determined that the Odisha State Medical Corporation Limited (OSMCL) is not eligible for a GST exemption on its services to the state government. The ruling states that while OSMCL qualifies as a “Government Entity,” the services it provides are not “pure services,” and therefore, they do not meet the criteria for exemption under Notification No. 12/2017-Central Tax (Rate).
OSMCL, a company fully funded and established by the Government of Odisha, filed an application for an advance ruling to clarify its tax liability. The corporation’s primary function is to procure, manage, and distribute medicines, surgical goods, and medical equipment for various government health facilities under the state’s “Free Medicine Distribution Scheme.”
Read AAAR Order in this case: AAAR Odisha Allowed GST Exemption as Medical Procurement Is Pure Service
The Applicant’s Arguments
OSMCL argued that it should be considered either a “Government Authority” or a “Government Entity,” and that its services, which are integral to a public health scheme, should be exempt from GST. The corporation cited that its activities, such as improving public health, are functions entrusted to local bodies under Article 243G and Article 243W of the Constitution.
