In a recent ruling, the Telangana State Authority for Advance Ruling (AAR) has held that the All India Institute of Medical Sciences (AIIMS) located in Bibinagar, Telangana, is not eligible to claim Goods and Services Tax (GST) exemption on pure services received by it from vendors. AIIMS-Telangana, a prestigious addition to the All India Institute of Medical Sciences network, was established to meet the rising demand for high-quality healthcare, medical education, and research in the region. It sought an advance ruling on whether it could claim GST exemption on pure services received from vendors, including manpower, housekeeping, and consultancy services, which were subject to an 18% GST rate. The institution had been reversing the entire Input Tax Credit (ITC) availed, as it provided exempt services (In other words its output services were exempt from GST).