Are Medical, AYUSH Councils Exempt from GST?

The DGGI had issued notices to these bodies under Section 74 of the GST Act, asserting that they function as corporate entities with GST registrations and provide taxable services in exchange for fees.

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In response, the councils argued that they are statutory bodies established under specific laws and act as extensions of the government rather than private corporate entities. According to a recent media report in TOI, they contended that their regulatory functions should not be subject to GST, as they primarily serve a public interest rather than engaging in commercial activities.

According to advocate Neel Lakhani, who appeared for DGGI, the councils and boards filed petitions in the HC claiming that they are not taxable persons and demanded that the communication issued by the GST department be quashed.

After reviewing the petitions, a division bench comprising Justice Bhargav Karia and Justice D N Ray issued a notice to the GST department, directing it to respond by May 1. Until further notice, the court has also restrained the department from taking any coercive action against these councils and boards, adds TOI