No GST on Leave without allowance fees from Medical or Paramedical Staff: AAR

An application has been submitted for an advance ruling before the concerned GST authority by the Directorate of Medical Education consisting of Shri Jomy Jacob, IRS, and Shri Mansur M.I., looking for clarity on the applicability of Goods and Services Tax (GST) on specific types of fees it collects. The applicant, legally named as the Directorate of Medical Education, has provided its GSTIN as 32AAAGD1378PIZA and ARN number as AD320324002197M. The office is located in the College Building of the Medical College, Thiruvananthapuram, Kerala – 605011. On 16th April 2025, the personal hearing for this matter was conducted. Sri S.R. Rajesh appeared as the authorized representative on behalf of the Directorate of Medical Education.

Question: The first question is regarding whether the GST should be charged on the fees collected from Medical Officers, Nursing Staff, and Paramedical Staff who apply for Leave Without Allowance (LWA) to work in India or abroad.

Ruling: The answer to this question is No. GST is not applicable on this fee. So, there will be no GST charged when these staff members will pay fees to get leave without allowance.

Question: The second is regarding the fees collected from self-financing educational institutions when the department does inspections. These inspections are done to issue NOC (No Objection Certificate), EC (Essentiality Certificate) and also to allow starting new medical, nursing or dental colleges or new courses or to increase the number of seats.

Ruling: The answer to this question is Yes. GST is applicable on this type of fee. The GST rate to be charged is 18%.So, GST is not charged on fees paid by staff for leave purposes but 18% GST is charged on inspection fees collected from private institutions.