The Authority for Advance Rulings, Telangana in the case of M/S. ALL INDIA INSTITUTE OF MEDICAL SCIENCES vide Order No.- A.R.Com/21/2023 TSAAR Order No.04/2024 dated 08.02.2024, ruled that the All India Institute of Medical Sciences (AIIMS) is not Central Government but a “Governmental Authority” as it is established by the Government by the Act of Parliament. Hence, ineligible for GST exemption on pure services procured from vendors.

In this case, the applicant, AIIMS is the one of the newest additions to the prestigious All India Institute of Medical Sciences (AIIMS) network in India, located in Bibinagar, a town in the Yadadri Bhuvanagiri district of the Indian State of Telangana, AIIMS Bibinagar was established to address the growing demand for high-quality healthcare, medical education and research in region.

The Applicant aims to produce skilled healthcare professionals who can meet the evolving healthcare needs of the nation. The institution is equipped with modern infrastructure and state – of – the – art facilities to medical education. They have entered into contracts with several entities for services. AIIMS is currently paying GST at a rate of 18%. However, in compliance with the provisions of the GST Act, it is reversing the entire Input Tax Credit (ITC) availed by us since They are providing exempt services.

The Applicant sought advance rulings on the issue whether All India Institute of Medical Sciences can claim GST Exemption on pure services received from Vendors.

The AAR, Telangana observed that the applicant is not the Central Government but a “Governmental Authority” as it is established by the Government by the Act of Parliament. The GST exemption Notification 12/2017 was amended with effect from 01.01.2022 have omitted the phrase Governmental Authority from the description of the services. Hence the applicant is not eligible for exemption.