Case Law Details
In re GVNR Health Pvt. Ltd. (GST AAR Punjab)
1. Introduction: The Advance Ruling Authority in Punjab rejected the application filed by GVNR Health Pvt. Ltd., a healthcare management company, on the grounds of non-compliance with procedural requirements, specifically the failure to submit the prescribed ARA-01 form and the non-payment of the requisite fee.
2. Background and Proceedings: GVNR Health Pvt. Ltd., with GST Registration No. 03AAICG1537B1ZB, is involved in the operations and management of hospitals and nursing homes under a revenue-sharing model. The applicant sought an advance ruling on whether the amount shared by the new person to the old person from the receipts of healthcare services attracts GST in the hands of the old person.
However, the applicant did not submit the application in the prescribed format (ARA-01) and failed to pay the required fee of Rs. 10,000 (Rs. 5,000 each for CGST and SGST). Despite receiving notices on 25.03.2022 and 27.09.2022 directing compliance with these requirements, the applicant did not rectify the deficiencies.
3. Question on Which Advance Ruling is Sought: The applicant sought clarification on the GST implications of the amount shared between the new person and the old person from the receipts of healthcare services under their revenue-sharing model.
4. Discussions and Findings: The rejection of the application was based on the non-payment of the requisite fee. The applicant was given multiple opportunities to rectify this non-compliance, but they did not deposit the required fee of Rs. 10,000 (Rs. 5,000 each for CGST and SGST).
5. Note on Applicable Acts: The AAR Punjab highlighted that the provisions of the CGST Act, 2017, and PGST Act, 2017, are almost identical, with specific reference to dissimilar provisions. Reference to one act implies a reference to the corresponding provision in the other act.
6. Conclusion and Implications for Future Cases: The rejection of the application serves as a reminder of the importance of complying with procedural requirements when seeking an advance ruling. Non-payment of the requisite fee can lead to the rejection of the application without addressing the substantive questions raised by the applicant. Future applicants are urged to ensure strict adherence to procedural guidelines to facilitate a comprehensive evaluation of their queries by the Advance Ruling Authority.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, PUNJAB
1. M/s GVNR Health Pvt. Ltd. Global Healthcare, Mall Road, Bathinda-151001 (GST Registration No. 03AAICG1537B1ZB) is engaged in the business of operations and management of Hospitals, Nursing Homes etc. The registered person operates and runs the Hospitals/ Nursing homes in different places on revenue sharing model.
2. Proceedings Under Section 98 of CGST/PGST Act:
The applicant has not submitted his application in prescribed format for Advance Ruling I.e. (ARA-01). Also he has not submitted the required fee i.e. Rs.10,000 (5000/- under CGST, Act and 5000/- under PGST, Act). In this regard notice dated 25.03.2022 & 27.09.2022 were issued directing the applicant to file the application in prescribed format along with requisite fee of Rs. 10,000/- (5,000 each for SGST and CGST) as prescribed under the. act. Despite giving couple of opportunities applicant has neither submitted application in proper format nor deposited the requisite fee.
3. QUESTION(S) ON WHICH ADVANCE RULING IS SOUGHT:
M/s GVNR Health Pvt. Ltd.,Global ‘Healthcare, Mall Road, Bathinda-151001 (GST Registration No. 03AAICG1537B1ZB) is engaged in the business of operations and management of Hospitals, Nursing Homes etc. The registered person operates and runs the Hospitals/ Nursing homes in different places on revenue sharing model.
1. Whether the amount which is shared by the new person to the old person from the receipts of Health care services attracts GST in the hands of old person?
4. DISCUSSIONS AND FINDINGS:
The requisite fee for filling Advance Ruling application is Rs. 10,000/- (Rs. 5,000 each for CGST and SGST), but the applicant has not deposited the requisite fee. Despite giving multiple opportunities, the applicant has not deposited the required fee of Rs. 10,000 under (Rs.5,000 each for CGST and SGST). Thus, the application is hereby filed without any ruling.
Note: The provisions of CGST Act, 2017 and PGST Act, 2017 are almost same except a few provisions. Unless specific reference is made to such dissimilar provisions in the two acts, reference to provisions of CGST Act, 2017 would mean a reference to the same provisions of PGST Act, 2017 and vice versa.
