Kochi: The high court has held that the Indian Medical Association (IMA) Kerala branch is liable to pay GST on the supply of goods and services to its members. Justice Dinesh Kumar Singh issued the order in a plea by IMA Kerala challenging its inclusion under the GST ambit by Director General of GST Intelligence (DGGI). HC also ruled the amendment in this regard to Section 7(a) of the Finance Act, which inserted Section 7(aa), is within legislative competence and not ultra vires.

Meanwhile, the court stated that the amendment should not have retrospective effect from July 1, 2017, but should be applied from the date it was notified, Jan 1, 2022. 

IMA Kerala branch has undertaken various activities for its members, and the assessing authority must examine each activity independently to determine whether it involves the supply of goods and services, which would affect the imposition of tax. The petitioner is allowed to demonstrate to the assessing authority that a particular activity does not involve any supply of goods and services, the bench said.

Petitioners were directed to respond to the impugned show-cause notices and the matters were remanded to the additional director general and deputy director of the Directorate General of GST Intelligence to complete the assessment. Until the assessment is complete, the interim order passed by the court, which prevents coercive steps against the petitioners, shall remain in effect, the bench ordered.