Thiruvananthapuram: The Registration Department has directed the District Registrar of Thiruvananthapuram to initiate an investigation into the Indian Medical Association (IMA) following allegations of significant GST evasion, as reported by the Central GST Department.
The probe aims to uncover any discrepancies in the IMA’s accounts and determine whether the organization violated registration regulations. The Registration Inspector General has called for a detailed examination of the Kerala chapter’s financial records, including balance sheets and income-expenditure statements since its registration. Additionally, the finances of IMA’s subsidiaries, such as IMAGE (IMA Gone Eco-Friendly), PEPS (Professional Equipment and Employment Protection Scheme), and Periyar Guest House, will be scrutinized.
Registered under the Travancore–Cochin Literary, Scientific, and Charitable Societies Registration Act of 1955, the IMA is classified as a non-profit charitable organization. However, preliminary findings suggest that subsidiaries like IMAGE, PEPS, and Periyar Guest House are unregistered. Despite its non-profit status, GST Intelligence alleges that the IMA engages in substantial commercial activities.
The report highlights IMA’s operations, including running a guest house, a bar, and an insurance scheme for members, while claiming to function solely as a professional club exempt from GST. The Central GST Department has submitted a detailed affidavit in the High Court, asserting that 90% of the IMA’s activities are not charitable in nature.
The affidavit further alleges that profit-making subsidiaries have funneled funds to the IMA for various purposes, such as land purchases and conference expenses. The Directorate General of GST Intelligence has recommended that the IMA comply with GST regulations, given its significant commercial undertakings.