Maintaining that the Indian Medical Association (IMA) does not deserve any tax exemption, the Goods and Services Tax (GST) Department submitted an affidavit in the High Court as a continuation of the ongoing dispute between the two bodies over tax payment.

The affidavit comes in the wake of the IMA approaching the High Court against the Central GST Department, which has filed many cases, including the one demanding over Rs 50 Crore as tax, against the former.

Producing before the court a liquor bill as evidence of sale outside the IMA bar, the GST has made it clear that the tax waiver allotted to the clubs should not be offered to the IMA as it is also running bar and real estate businesses.

Arguing that the bill clearly indicated that liquor is being sold outside of the Kochi IMA bar, the GST Department sought to know how the IMA is entitled to tax waiver on the basis of its club registration. The GST Department also informed the court that the IMA is running a biomedical waste treatment plant and real estate business besides the bar and it is earning large revenue from all these apart from the membership fees. In this context, the IMA should pay the taxes, the Central body stated. 

Source: Mathrubhumi.com