In re Karnataka State Nursing Council (GST AAR Karnataka)
The Karnataka State Nursing Council, a statutory body involved in regulating nursing education and practice in the state, had its application for an advance ruling under the Goods and Services Tax (GST) law rejected by the Karnataka Authority for Advance Ruling (AAR). The Council had sought clarity on the taxability, classification, and applicable rate of GST on various fees it collects for services such as registration, renewal, and foreign verification.
The applicant, M/s. Karnataka State Nursing Council, located in Bengaluru and possessing GSTIN 29AAAAK7495E1ZB, formally filed an application in Form GST ARA-01, accompanied by the prescribed fees of Rs. 5,000 each under the CGST Act, 2017, and the KGST Act, 2017. The Council highlighted its role in promoting healthcare services across Karnataka and its establishment under the “Karnataka Nurses, Midwives and Health Visitors Act.” It also noted its registration as a Non-Profit Organisation under Section 12AB of the Income Tax Act, 1961. The core of their application lay in understanding the GST implications of the different fees levied for the services it provides as a regulatory and facilitating body for nursing professionals.
The process included a personal hearing conducted through video conference on April 8, 2025. During this hearing, Sri M Raghavendra Reddy, a Chartered Accountant representing the applicant, reiterated the details and questions put forth in the initial application. However, a crucial admission was made during this appearance: the issue raised in the advance ruling application had, in fact, already been decided in a prior proceeding concerning the applicant, and an Order-in-Original had been issued in that regard.
