Multiple writ petitions were filed by associations and individuals representing Haj Group Organizers (HGOs) and Private Tour Operators (PTOs) challenging the levy of service tax and Goods and Services Tax (GST) on services provided to Haj pilgrims. The petitioners contended that their services — involving travel, accommodation, food, and logistics — formed part of the conduct of a religious ceremony (Haj/Umrah) and were thus exempt under paragraph 5(b) of the Mega Exemption Notification No. 25/2012–ST and corresponding GST exemption notifications. They further argued that while Haj Committees were granted tax exemption under paragraph 5A as “specified organisations,” denial of a similar exemption to HGOs/PTOs violated Article 14 of the Constitution.

The Union of India contended that HGOs/PTOs merely arranged logistics and did not conduct any religious ceremony; hence, their services were taxable. It was also submitted that the classification distinguishing Haj Committees from HGOs was reasonable since the former are statutory bodies functioning under the Haj Committee Act, 2002, while the latter are private profit-oriented entities.

The Supreme Court dismissed the petitions, upholding the tax liability of HGOs and PTOs. The Court held that under the Finance Act, 1994 and the Integrated GST Act, 2017, the place of provision of services was the location of the recipient—Indian residents—making the services taxable within India. The Court found that paragraph 5(b) of the Mega Exemption Notification applied only to persons who conduct religious ceremonies, not to those merely facilitating travel and accommodation. Clause 5A applied exclusively to “specified organisations” such as the Haj Committee, not to private operators.

On the issue of Article 14, the Court held that the classification between the Haj Committee and HGOs was valid, as the former is a statutory body under government control performing welfare functions, while HGOs are commercial entities. The plea based on Article 25 was also rejected. Consequently, all writ petitions were dismissed, and the levy of service tax/GST on HGOs/PTOs was upheld.