GMHC not liable to pay Service Tax on Manpower supply Services and Cab Rent Services under RCM: CESTAT sets aside demand

In a recent decision, the CESTAT (Customs, Excise and Service Tax Appellate Tribunal) ruled that GMHC (Government Medical College and Hospital) is not liable to pay service tax under Reverse Charge Mechanism (RCM) for manpower supply and cab rent services. The tribunal set aside the demand raised against GMHC, emphasizing that these services do not fall within the ambit of taxable services under the Finance Act. This decision highlights the importance of precise interpretation of tax laws in determining liability under RCM for healthcare institutions like GMHC.