Jodhpur : The Central Goods and Services Tax Department (Central GST) has issued a show cause notice to All India Institute of Medical Sciences (AIIMS) Jodhpur for not depositing GST of Rs 100 crore. Central GST has sent notices to all 20 AIIMS across the country for not depositing GST regarding a case of AIIMS Dehradun. The amount of all is different. The AIIMS administration is consulting tax and financial advisors in this matter. If the AIIMS administration does not respond to the notice, then it will have to pay GST. The construction work of AIIMS Jodhpur has been done by the Central Public Works (CPWD) department. Since CPWD is a government department and the government never pays tax, but AIIMS considers itself an autonomous institution. In such a situation, this notice has been issued under the reverse charge mechanism. Under this, if GST is due on the money spent in the construction work, then the government should have deposited it.
GST is zero on health services
Health services in the country are GST free. AIIMS does not charge GST from patients on the facilities being provided like medical checkup, operation, clinical tests etc. In such a situation, if AIIMS pays GST on construction work, then its input tax credit (ITC) will remain only in the accounts.
Understand the matter like this
For example, if any government department sells its waste, then GST will not be levied on the government department, but the buyer will have to pay GST on the amount of waste purchased and will have to deposit the tax in the GST department.
Notice issued to all AIIMS across the country
We have issued a show cause notice to AIIMS Jodhpur to deposit GST under the reverse charge mechanism. Such notices have been issued to all AIIMS across the country.
