Kochi: The High Court has stayed the cancellation of GST registration for the Indian Medical Association Goes Eco-Friendly (IMAGE), Kerala’s largest biomedical waste collection unit. The interim relief, granted by Justice Bechu Kurian Thomas, will remain in effect for six weeks from January 7.

The State Goods and Services Tax (GST) department issued the cancellation order on December 31, 2024, with retrospective effect from December 13, citing "willful misstatement and suppression of facts." The stay was granted in response to a petition filed by Dr Krishnakumar PV, secretary of IMAGE, challenging the cancellation.

According to the petitioner, IMAGE was registered as an Association of Persons (AoP) under the Income Tax Act of 1961. It operated under the erstwhile service tax regime from 2011 until transitioning to GST in 2017. The plea contended that the cancellation order was "perverse" and that the alternative legal remedy available was inadequate.

The government, however, opposed the stay, arguing that the petitioner’s documents did not establish IMAGE as an AoP, as noted in the cancellation order. It also maintained that an alternative remedy was available. Despite these objections, the court granted interim relief and scheduled the next hearing for March 21.

The blacklisting of IMAGE could lead to a major health crisis in Kerala, as the organisation handles biomedical waste collection from over 20,000 medical establishments, including major government hospitals. If operations are halted, waste disposal across the state will stand at a standstill.

The GST cancellation has serious consequences, including invalidating IMAGE’s GST Identification Number (GSTIN), which affects its legal operations. Additionally, access to the Electronic Way Bill (e-way bill) system will be blocked, making waste transportation from hospitals to its Kanjikode plant illegal, as GST regulations require an e-way bill for goods above a certain value. IMAGE will also be unable to generate electronic invoices, preventing it from billing clients.  

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