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Telangana HC: Inspection Fee to Nursing College Will Be Subject to GST

Telangana HC's Order for Care College of Nursing

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.

Read Also: School Transportation Fees Eligible for Exemption from GST

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 TitleCare College of Nursing Vs Kaloji Narayana Rao University of Health Sciences
CitationWP No.34617 of 2022 & batch
Date17.10.2023
Counsel For PetitionerMr.Gaddam Srinivas
Counsel For RespondentMr. Dominic Fernandes,
Mr.V. Rajeshwar Rao
Telangana High CourtRead Order

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Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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