TaxTMI 
TaxTMI 
2026 (3) TMI 1296
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....ed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. Indian Medical Association, Coimbatore (hereinafter referred to as the "Applicant") is one of the oldest medical associations in India, incorporated since 1925. The association is engaged in conducting general health camps for economically weaker sections of society and organising seminars for its members, who are medical professionals, to upgrade their medical practices. 2.1 The core activities undertaken by the Applicant can be summarised as follows: - • Conducting free medical health camps for underprivileged communities, providing hea....
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....cal associations in India, incorporated since 1925. The association is engaged in conducting free medical health camps for under privileged communities, providing health care services and organizing educational seminars and workshops for its members who are doctors, to enhance their knowledge and medical skills. Since, these activities primarily involve the provision of healthcare services, which are exempt from GST as per Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, the applicant seeks a ruling on whether its activities would be subject to GST under the provisions of Central Goods and Service Tax Act, 2017. 3.4 Under the 'Interpretation of law by the Applicant, they have stated that as per section 2(17)(e) of the CGST Act, 2017, any provision of facilities or benefits by a Club, Association, or Society to its members for a subscription or any other consideration is considered as a business activity. However, they have stated that the applicability of GST on such activities must be examined in light of the specific exemption provisions applicable to healthcare services, viz., 1. Exemption under Notification No. 12/2017-Central (Rate), dated 28.06.20....
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....icant was given an opportunity to be heard in person on 20.01.2026. Mr. R. Sree Krishnan, Chartered Accountant appeared for the personal hearing as Authorized representative of the applicant 5.2 The AR informed that the Coimbatore Branch which is for doctors practicing in the district of Coimbatore was formed in the year 1924 and are registered under Income Tax Act as a Trust under Section 12A. The subscription from the members is treated by them as donation which is used for various activities such as health camps, training for doctors, etc. They further stated that collection of lifetime subscription finds mention in the bye laws of the Association, and the amount is decided based on resolution passed by the members from time to time. 5.3 The AR further mentioned that they are paying GST on other services such as renting of immovable property etc., rendered by them and sought clarity on the taxability of the lifetime subscription paid by their members. 5.4 The AR also stated that there is Tamil Nadu Medical Association and Indian Medical Association to which they are affiliated; that the National Chapter has started paying GST on the subscription amount from 2024 onwards....
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....or incidental or ancillary to sub-clause (a); (c) ----- (d) ----- (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) ----- (g) ----- (h) ----- (i) -----." 6.5 We find that the activity relating to 'Conducting free medical health camps for under privileged communities, providing health care services', even in cases when they are not carried out for pecuniary benefit, are to be considered as 'business', as it relates to 'profession' thereby getting covered under sub-clause (a) to Section 2(17) of the CGST Act, 2017. Likewise, the activity relating to 'Provision of other services such as renting of immovable property etc., by the Applicant', qualifies as 'business', as it is an activity in relation to 'commerce', thereby getting covered under sub-clause (a) to Section 2(17) of the Act, ibid. However, since the query raised by the Applicant in the instant case confines itself to determination as business (or otherwise) under Section 2(17)(e) of the CGST Act, 2017, ....
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....hat Section 7 of the CGST Act, 2017 was amended through section 108 of the Finance Act, 2021 (No. 13 of 2021) with effect from 1.7.2017, which read as follows:- "108. In the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the Central Goods and Services Tax Act), in section 7, in sub-section (1), after clause (a), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2017, namely:-- "(aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. Explanation.- For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another."." The appointed date on which the provisions of section 108 of the Finance Act, 2021 (....
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....of the provisions of Section 7(1)(aa) of the CGST Act, 2017, as inserted by Section 108 of the Finance Act, 2021 (No.13 of 2021), albeit from 1.01.2022, when it stood notified under Notification No. 39/2021 Central Tax dated 21.12.2021. Further, since the said judgement has ruled only against the retrospective application of the aforesaid amendment with effect from 1.07.2017, and has upheld the application of Section 7(1)(aa) of the CGST Act, 2017, it does not come to the aid of the Applicant. 6.11 Further, we find that the Applicant has contended that the applicability of GST on such activities must be examined in light of the specific exemption provisions applicable to healthcare services, since the ultimate objective is to provide healthcare services, which are otherwise exempt. In this regard, it is to be stated that supply of 'Health care services' are indeed exempt from payment of GST under Sl.No.74 of the exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017. However, the query for advance ruling raised by the Applicant in the instant case revolves around the business activities under Section 2(17)(e) of the CGST Act, 2017, and the supply of services under....