Case Law Details
Care College of Nursing and others Vs Kaloji Narayana Rao University of Health Sciences (Telangana High Court)
The Telangana High Court recently delivered a significant judgment in the case of “Care College of Nursing and others Vs Kaloji Narayana Rao University of Health Sciences (Telangana High Court),” ruling that private medical colleges are liable to pay Goods and Services Tax (GST) on affiliation and inspection fees. This article delves into the details of the case, the court’s analysis, and the potential consequences of this decision.
Detailed Analysis
In a batch of writ petitions, several educational institutions, primarily nursing colleges affiliated with Kaloji Narayana Rao University of Health Sciences (K.N.R.U.H.S.), challenged the demand notice issued by the university. The notice demanded the payment of 18% GST (9% SGST and 9% CGST) on affiliation and inspection fees from July 2017 onwards. The educational institutions contended that they should be exempt from GST based on certain provisions.
The core argument put forth by the petitioners was centered on Notification No.12 of 2017 dated 28.06.2017, which grants exemptions to specific services provided by educational institutions. This notification covers services provided by educational institutions to their students, faculty, and staff. It also includes services such as transportation, catering, security, cleaning, and services related to admissions and examinations.
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