The Telangana High Court has made it clear in its recent clarification that the nursing colleges that pay fees to Kaloji Narayana Rao Health University are not exempted. The court has made it clear providing a firm clarification on the case. The fees colleges pay are for the purpose of college inspections and affiliations are subject to taxation under the GST law. These fees do not fall under the exempt category of services.
In a judgment delivered by a bench comprising Justice P Sam Koshy and Justice Laxmi Narayana Alishetty, the court addressed a series of petitions filed by Care College of Nursing and nine other colleges. It ruled that the exempt services referred to those provided by these colleges to their students, faculty, and staff.
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Services such as conducting entrance examinations, which do not incur GST on the fees collected from students, fall under the exempt category.
GST had been collected from the health university by the tax authorities. It was applicable for the fee collected from nursing colleges during inspections and subsequent affiliations. The university, in turn, had been requesting these colleges to pay for these services. And imposition of GST is contended by the nursing colleges.
The court agreed with Dominic Fernandes, the counsel for the tax authority, who argued that these colleges could not claim to be providing educational services at the time of establishing the colleges. The bench stated that inspections are conducted during the initial stage, and affiliations are granted thereafter. The admissions and services provided to students and staff occur after affiliation. It was difficult to accept the argument that the petitioners provided educational services.
Case Title | Care College of Nursing Vs Kaloji Narayana Rao University of Health Sciences |
Citation | WP No.34617 of 2022 & batch |
Date | 17.10.2023 |
Counsel For Petitioner | Mr.Gaddam Srinivas |
Counsel For Respondent | Mr. Dominic Fernandes, Mr.V. Rajeshwar Rao |
Telangana High Court | Read Order |