In W.P.(C) 7310/2023 -DEL HC- Delhi High Court rules disqualifying Haj Group Organizers for quota allotment unjust if they possess valid GST registration and can provide explanation for GST calculation and deposit
Justice Prathiba M. Singh [25-05-2023]

Read Order: Al Amanath Haj Services India Pvt. Ltd and Ors V. Union of India

Chahat Varma

New Delhi, June 8, 2023: The Delhi High Court has ruled that disqualifying Haj Group Organizers (HGOs) would be unjust as long as they possess a valid GST registration and can provide an explanation for the calculation and deposit of GST prior to filing the application for quota allotment.

These present petitions related to various HGOs and allotment of quota for Haj pilgrimage 2023. The Petitioners had submitted that there was no clarity regarding the amount of GST payable, because initially, the HGOs were claiming exemption for the Haj pilgrimage. However, this issue was settled by the Supreme Court in All India Haj Umrah Tour Organizer Association, Mumbai v. Union of India [LQ/SC/2022/902], wherein the Supreme Court had held that the exemptions granted to the Haj Committee would not be applicable to private HGOs.

It was pointed out by the counsels for the parties that there was another issue related to the extra-territorial operation of service tax, which was not adjudicated in the aforementioned Supreme Court judgment and remained open to be decided in appropriate proceedings. It is in view of this uncertainty that several of the HGOs which have been found to be ineligible have paid 18% GST on the margin amounts. On the other hand, entities which have been found to be eligible under the policy have paid GST @ 5% on the total turnover itself.

The bench of Justice Prathiba M. Singh examined the relevant clause in the 2023 Haj Policy and observed that GST registration and payment are mandatory for HGOs. However, any uncertainty regarding the amount of GST to be paid should be addressed by the GST authorities and opined that it cannot operate as a disqualification of the Petitioner HGOs.