In re Navneeth Kumar Talla (GST AAR Telangana)
Q 1. Whether the food supplied to hospital i.e. Government Hospitals, Private Hospitals and Autonomous Bodies on outsourcing basis the GST is chargeable? If GST is chargeable what is the tax rate?
Ans: Yes
Q 2. If no GST is chargeable on the supply of food the GST already paid by the Hospitals and remitted to Government is recoverable from my future Bills.
Ans: For the period from 01.07.2017 to 26-07-2018 – 18% (CGST 9% + SGST 9%) For the period from 27.07.2018 onwards – 5% (CGST 2.5% + SGST 2.5%) Provided that credit of input tax charged on goods and services used in supplying the service has not been taken
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,TELANGANA
(Under Section 100(1) of the CGST/TGST Act, 2017, any person aggrieved by this order can prefer an appeal before the Telangana State Appellate Authority for Advance Ruling, Hyderabad, within 30 days from the date of receipt of this Order)
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Telangana Goods and Service Tax Act, 2017 are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Telangana Goods and Service Tax Act, 2017.
1. M/s. Navneeth Kumar Talla, H.No No.23/6/17/A, Bela Shahali Banda, Hyderabad, (GSTIN No. 36AAMPT4171B1ZN) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 and Read with Rule 103 of CGST/TGST Rules, seeking Advance Ruling on the issues raised in their application.
2. The applicant submitted the application in FORM GST ARA-01 and Statement containing the applicant’s interpretation of law & relevant facts and requested for advance ruling on classification of services rendered by them and rate of tax applicable. They have submitted a copy of Challan evidencing payment of application fee of Rs.10,000/-.
3. A personal hearing was held in this case and the assesse have appeared for personal hearing on 09.11.2018. However due to administrative exigencies, the Orders were not released. Further Government Go. Rt.No.312, Revenue (CT.II) Department, Dt. 05.11.2019 have appointed Sri B. Raghu Kiran, IRS, Joint Commissioner(Central Tax) as member in place of Sri V. Srinivas, IRS, Additional Commissioner(Central Tax). Hence another notice was issued to the applicant to appear for Personnel Hearing on 04-12-2019. The Authorised representative Sri. G. Ashok Kumar appeared and explained their case as under:
a. The Authorised representative has submitted that, the applicant / Assessee is doing the following nature of business:
(i) They are dealing with supply of food to MNG Cancer Hospital Hyderabad (Autonomous Body) on out sourcing basis to patients of MNG Cancer Hospital.
(ii) The applicant requested to clarify:
(a) whether Food supplied to Hospitals i.e. Government Hospital, Private Hospitals and Autonomous Bodies on outsourcing basis, GST is chargeable?
(b) If GST is chargeable what is the tax rate? If no GST is chargeable on the Supply of food, the GST already paid by the Hospitals and remitted to Government is recoverable from their future bills?
4. This being the case Consequent upon receipt of the application filed by M/s. Navneeth Kumar Talla, the jurisdictional officer i.e. Assistant Commissioner (State Tax) Charminar Circle, was requested vide this office letter CCT’s Ref no.A.R.Com/22/2018 dated: 11.09.2019 inform, whether the questions raised in the application is already pending or decided in any proceedings in the case of the applicant under any of the provisions of the GST Act, 2017 and also requested to offer his/he comments on the points raised in the application.
5. The Assistant Commissioner (State Tax), Charminar Circle, vide his reply dated: 01.04.2019, stated that there are no issues pending before him with regard to issues raised by the applicant.
6. In view of the reply given by the Jurisdictional Officer, the application filed by M/s. Navneeth Kumar Talla was admitted and a personal Hearing was given to the applicant.
7. The case is posted on 04-12-2019 at 3.00 p.m, Sri G. Ashok Kumar Authorised representative of M/s. Navneeth Kumar Talla has appeared for the personal hearing and reiterated the following written submissions which were already submitted. It was submitted that:
> As per the Notification No. 8/2017- Integrated Tax(Rate), dt. 28-06-2017 as per the Chapter 99 Section 6HSN Code 9963 Para (V) Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable consideration the rate of tax is 18%.
> The Hospital Authorities have filed a letter to Commissioner (ST) for clarification of rate of tax under GST regarding supply of food to Hospital. The Commissioner (ST) vide letter CCT’s Ref No. A(1)/15/2018 dated 0502-2018 replied to the Hospital Authorities regarding rate of GST on food and beverage services will be chargeable as per Notification No.11 of 2017 and advised to file an application for clarification on Advance Ruling before Advance Ruling Authority for authenticity.
8. Further, it was also contended that the Government of India ministry of Finance Department of Revenue Tax research unit has given certain clarification regarding levy of GST on health care services provided by a clinical establishment and food supplied to the patients as per Circular No. 32/06/2018-GST, dt. 12/02/2018 at Si. No. 5(3) as under:
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