Case No.
W.A.No.1659 of 2024, W.A.No.1487 of 2024, W.A.No.468 of 2025
Bench
Dr. Justice A.K. Jayasankaran Nambiar and Justice Easwaran S.
Acts & Sections
Central Goods and Services Tax Act, 2017 §7
Central Goods and Services Tax Act, 2017 §2
Integrated Goods and Services Tax Act, 2017 §2
Kerala Goods and Services Tax Act, 2017 §7
Constitution §226
Headnote
AI-drafted · Reviewed and approved
The Kerala State Branch of the Indian Medical Association (IMA) filed a writ petition apprehending coercive action from the Directorate General of GST Intelligence for recovery of tax on services rendered to its members under various mutual welfare schemes, including Social Security Schemes, Professional Disability Support Scheme, Professional Protection Scheme, and Kerala Health Scheme. The petitioner contended that it was not liable to pay GST on supplies of services to its members, as such transactions were in the nature of mutual dealings between an association and its members. The writ petition was decided by a learned Single Judge on 23.07.2024, prompting cross-appeals by the IMA as well as GST authorities of the Union of India and the State of Kerala.
The three Writ Appeals arising from the same judgment were heard together by the Division Bench of the High Court of Kerala. The core issue involved the taxability under the Goods and Services Tax framework of services rendered by a professional association such as the IMA to its member-doctors through contribution-based mutual benefit schemes. The appeals raised questions concerning whether activities of the IMA constituted a 'supply' under the GST Act and whether the doctrine of mutuality could be invoked to exclude such transactions from the ambit of GST.
The Division Bench, comprising Dr. Justice A.K. Jayasankaran Nambiar and Justice Easwaran S., took up all three writ appeals for final hearing on 20.03.2025 and delivered judgment on 11.04.2025, examining the interplay between the concept of mutuality, the statutory definitions under the GST legislation, and the taxability of services offered by trade and professional associations to their members.
Catchwords:
GST · Goods and Services Tax · Indian Medical Association · mutual association · supply of services · mutuality doctrine · professional association · Social Security Scheme · GST Intelligence · coercive action · writ appeal · Kerala · taxability · member services · fraternity contribution
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