IMA Kerala Owes Rs 50 Crore, GST Dept informs High Court

Thiruvananthapuram: The Kerala chapter of the Indian Medical Association (IMA) has Rs 50 crore GST due, the Directorate General of Goods and Services Tax Intelligence (DGGI) recently informed the High Court.

Submitting an affidavit, the regional director of DGGI Kozhikode, S Syam Nath informed the Court that an investigation revealed that IMA Kerala has acquired Rs 280 crores in the last six years through various schemes.

It was further stated that responding to the letter by the GST Department, the association had acknowledged its tax debt. However, no payment was made by the IMA Kerala Chapter.

DGGI filed the affidavit in response to the plea by the association before the High Court. Medical Dialogues had earlier reported that approaching the High Court bench, the association sought an order restraining the GST Intelligence officials, their men and agents from provisionally attaching the properties of the association.

This comes after the Directorate General of Goods and Services Tax Intelligence (DGGI) sent an email to the Secretary of IMA and requested a comprehensive list of immovable properties registered under the IMA Kerala branch. Previously, the GST Intel officials had issued a notice to IMA on June 19 requiring compliance with the GST laws.

However, the association has contended before the Court that there is no need for them to pay the GST as it was registered as a "charitable association". On the other hand, the GST Intel claimed that 90% of the activities carried out by the IMA are categorized as non-charitable.

Also Read: GST sleuths move to attach property of IMA Kerala against GST dues, Association cries foul

Previously the HC bench had allowed an interim relief to the association in this regard and the bench of Justice C.S. Dias had clarified that no coercive action will be undertaken till the next hearing of the case on July 6, 2023.

As per the latest media report by Mathrubhumi, now filing an affidavit before the High Court, the regional director of DGGI Kozhikode, S Syam Nath has informed that the association is in tax debt of Rs 50 crores. Further, the affidavit mentioned that an investigation revealed that IMA Kerala acquired Rs 280 crores in the past six years through various schemes. Although the association acknowledged the tax debt, it failed to pay the amount.

Submitting that IMA is not exempted from GST responsibilities just because it is registered under the Charitable Trusts Act, the department further stated that they had gathered information on the debt owed by the State body.

On the other hand, IMA has refuted the allegations and claimed that DGGI had not notified them of the tax debt, adds The News Minute. In its plea, IMA said, "respondents have not issued any show cause notice till date stating how and in what manner the petitioner may be liable; no demand has been proposed, nor has there been quantification of any liability. While so, details are sought regarding immovable properties of the association apparently with a view to provisionally attach petitioner's properties."

During the hearing of the case on Thursday i.e. July 6, the counsel of IMA informed the Court that the allegations levelled by DGGI were baseless and the matter should have been informed to IMA in a formal manner.

The counsel for IMA further sought a breathing time to file a reply affidavit to the counter affidavit filed by the respondents. Taking note of this, the HC bench ordered, "The interim order dated 306.2023 will stand extended till the date of next hearing." The matter has been listed for further hearing on 11.7.2023.

To view the order, click on the link below:

https://medicaldialogues.in/pdf_upload/kerala-hc-order-july-6-213714.pdf

Also Read: DNB doctors to get refund of GST paid with course fees: Delhi HC order