HYDERABAD: The Commercial Taxes officials are reportedly keeping a tab on goods and services extended to the educational institutions and hospitals in the city so that they can get huge amount of GST on them every month. While the education and health care services are exempted from the Goods and Services Tax (GST), the goods and services offered to such institutions are not.
For example, a private security service agency providing security to a number of educational institutions in the city collects GST from the educational institutions. However, it was not paying it to the government. Recently, the Commercial Taxes officials found this slippage and contacted the agency. Initially, the representatives of the agency feigned ignorance. But, they later paid `2.9 crore in a single day.
The educational institutions and hospitals were getting other services like food items, various goods, besides security services. “The security services provided will not come under the category of claiming input tax credit. That is why they did not pay GST. But, we directed some service providers to pay the tax,” Commercial Taxes principal secretary Somesh Kumar said. He said around 90% of health care services are outsourced by private hospitals. They too have to pay the GST. “Once the agencies which provided services and goods to hospitals and educational institutions pay tax, we are expecting to get around `200 crore additional monthly revenue,” he said.