Levy of GST— The present appeal has been filed by M/s. Kasturba health society, against the Advance Ruling order pronounced by Maharashtra Authority for Advance Ruling.

The Appellant is existing solely for imparting the Medical Education, till Post Graduation. as a Joint Venture having funding from Central Government @ 50%, State Government @ 25% and remaining 25% comes mainly by way of Fess from Students and Patients. The Appellant is having its setup in fonn of “Medical College” named as “Mahatma Gandhi Institute of Medical Science”. at Village Sewagram, Dist. Wardha, which is attached with clinical laboratory named as “Kasturba Hospital”.

The Applicant society filed application for advance ruling in respect of following questions: –

i. Whether the applicant, a Charitable Society, having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution”, can be said to be engaged in the business so as to cast an obligation upon it to comply with the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 in totality.

ii. Whether the applicant, a Charitable Society, having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution” is liable for registration under the provisions of section 22 of the Central Goods and Services Tax Act. 2017 and Maharashtra Goods and Services Tax Act, 2017, or it can remain outside the purview of registration in view of the provisions of section 23 of the said act as there is no taxable supply.

iii. In a situation if above questions are answered against the contention of the appellant institution then following further questions were raised for the kind consideration by the Honourable Bench.

a. Whether the fees and other charges received from students and recoupment charges received from patients (who is an essential clinical material for education laboratory) would constitute as “outward supply” as defined in section 2(83) of The Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017, and if yes, then whether it will fall in classification entry at Sr. No 66 or the portion of nominal amount received from patients (who is an essential clinical material for education laboratory) at Sr. No. 74 in terms of Notification 12/2017 Central Tax (R) — dt. 28/6/2017.

b. Whether the cost of Medicines and Consumables recovered from OPD patients along with nominal charges collected for Diagnosing by the pathological investigations, other investigation such as CT-Scan, MRI, Colour Doppler, Angiography, Gastroscopy, Sonography during the course of diagnosis and treatment of disease would fall within the meaning of “composite supply” qualifying for exemption under the category of “educational and/or health care services.”

c. Whether the nominal charges received from patients (who is an essential clinical material for education laboratory) towards an “Unparallel Health Insurance Scheme” to retain their flow one end for the purpose of imparting medical education as a result to provide them the benefit of concessional rates for investigations and treatment at other end would fall within the meaning of “supply” eligible for exemption under the category of “Educational and/or Health Care Services.”

d. Whether the nominal amount received for making space available for essential facilities needed by the students and staffs such as Banking, Parking, Refreshment etc. which are support activities for attainment of main activities and further amount received on account of disposal of wastage would fall within the meaning of “supply” qualifying for exemption under the category of “educational and/or health care services.”

The MAAR held that the Kasturba health society and MGIMS are separate and distinct person and as such are two separate entities and therefore question were not answered.

Held that— 

The fees and other charges received from students and recoupment charges received from patients would constitute as a consideration for “outward supply” as defined in section 2(83) of the CGST Act, 2017 and the supply of educational services or health care services, against which both these charges are collected by the Applicant, are exempted supplies in terms of the entries at Si. No. 66 and SI. No. 74 of the Notification No. 12/2017-C.T. (R)

The charges collected under the “Unparallel Health Insurance Scheme” are to be considered as advance towards the provision of the health care services to the subscribers of this scheme, and accordingly, any amount collected towards this scheme will not be subjected to levy of GST in terms of the entry at SI. No. 74 of the exemption Notification No. 12/2017-C.T. (R) dated 28.06.2017

The amount received by the Appellant for rendering renting of immovable property services will be considered as separate and independent supplies, and will be taxable at the rate of 18% in terms of the item (iii) bearing the description “Real estate services other than (i) and (ii) above” of the entry at SI. No. 16 of the Notification No. 11/2017-C.T. (Rate) dated 28.06.2017. whereas, the charges received against the disposal of wastes will be subject to levy of GST as the supply of wastes to the vendors would be construed as independent and separate supply, attracting the levy of GST at the applicable rate prescribed under Notification No. 01/2017-C.T. (Rate) dated 28.06.2017