IMA owes Rs 50 crores in taxes, says GST dept in Kerala HC

Kochi: The Directorate General of GST Intelligence (DGGI) has informed the Kerala High Court that the state branch of the Indian Medical Association (IMA) is in tax debt to the tune of Rs 50 crores. 

According to an affidavit filed in the High Court by DGGI Kozhikode regional director S Syam Nath, an investigation unearthed that IMA's state organisation has acquired Rs 280 crores in the past six years through various schemes. In response to a letter by the GST department, the IMA acknowledged its tax debt but failed to pay the amount. 

The affidavit was issued in response to an IMA petition questioning the GST department's issuance of a notice asking for details on the assets they possess. 

Initially, the department issued a notice to IMA for failing to mention assets owned by them in the income tax forms. However, the GST department claims that IMA fails to comply with their request or submit the tax, forcing them to launch an investigation. 

The department maintained that IMA is not exempt from GST responsibilities for its activities simply because it is registered under the Charitable Trusts Act. The department contends that GST applies to IMA membership fees and other schemes. 

Meanwhile, the department has stated that they had only gathered information on the debt owed by the state body.