Collection of GST on course fees and remittance to hospitals clarified; refunds required where tax remains with the examining body. Collection of GST on course fees by a service provider and subsequent remittance to third-party hospitals is examined; notifications cited concern ...
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Collection of GST on course fees and remittance to hospitals clarified; refunds required where tax remains with the examining body.
Collection of GST on course fees by a service provider and subsequent remittance to third-party hospitals is examined; notifications cited concern applicability to such receipts and the legal effect is that where GST remains with the examining body it must be traced and refunded to affected candidates, while sums already remitted to hospitals are to follow directions issued to those recipients. The examining body must identify untraced transactions and refund GST where available; bulk remittances to hospitals limit direct recovery from the examining body and require compliance by the hospitals with prescribed directions.
Issues: The petitioners challenged notifications by NBE regarding GST collection from DNB candidates along with course fees.
Details of the Judgment: The petitioners contended that GST was not payable on the course fee, which was confirmed by the GST Council and Respondent No. 3. NBE acknowledged the error in collecting GST from candidates.
The Court directed NBE to disclose details of candidates from whom course fee and GST were collected, the hospitals to which funds were remitted, and the mode of remittance within six weeks.
NBE filed an affidavit disclosing the number of candidates and transactions involving course fee and GST collection. While some GST remains with NBE, the majority was remitted to hospitals.
The Court found merit in the petitioners' argument to set aside the impugned notifications. NBE agreed to withdraw the notifications collecting GST on course fees.
Further directions were issued for refunding GST to candidates, halting GST deposits by hospitals, and applying for GST refunds where necessary. Efforts were to be made to trace transactions not linked to candidates for prompt refund.
The concerned GST authorities were urged to process refund applications promptly, and hospitals were instructed to refund collected GST to candidates expeditiously.
NBE was tasked with communicating the court's order to all hospitals and ensuring compliance. Follow-up action for order implementation was authorized, with liberty to apply if needed.
The petition was disposed of with the aforementioned directions to address the erroneous GST collection issue effectively.
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