Section 7(1)(aa) & 2(17)(e) of the Kerala GST Act, insofar as they introduce a levy on activities or transactions between members and their constituents or vice versa, have been held to be ultra vires
The Petitioner operates various mutual benefit schemes for its member doctors, such as the Social Security Scheme, Professional Disability Support Scheme, Professional Protection Scheme, Kerala Health Scheme, among others. Under these schemes, member doctors contribute admission and/or annual fees and make fraternity contributions upon the death or disability of fellow members. The pooled contributions are disbursed to the widows of deceased doctors, to disabled doctors, or to doctors suffering from specified diseases. Each scheme is managed by a separate, earmarked committee, maintains a separate bank account, and has independently drawn and audited financial statements.
