Author: admin_gst

WEST BENGAL GOODS AND SERVICES TAX (REMOVAL OF DIFFICULTIES) ORDER, 2018
01/2018-State Tax Dated:- 27-12-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
REVENUE
THE WEST BENGAL GOODS AND SERVICES TAX (REMOVAL OF DIFFICULTIES) ORDER, 2018
No. 1872-F.T.
Howrah, the 27th day of December, 2018.
Order No. 01/2018-State Tax
WHEREAS, sub-section (1) of section 44 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017) (hereafter in this Order referred to as the said Act) provides that every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish

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effect to the provisions of the said section;
NOW, THEREFORE, in exercise of the powers conferred by section 172 of the West Bengal Goods and Services Tax Act, 2017, the Governor, on recommendations of the Council, is pleased hereby to make the following Order, to remove the difficulties, namely:
1. Short title.-This Order may be called the West Bengal Goods and Services Tax (Removal of Difficulties) Order, 2018.
2. In section 44 of the West Bengal Goods and Services Tax Act, 2017, after sub-section (2), the following Explanation shall be inserted, namely:
"Explanation.- For the purposes of this section, it is hereby declared that the annual return for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished o

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Recommendations made during GST Council meeting held on 22.12.2018
By: – Ganeshan Kalyani
Goods and Services Tax – GST
Dated:- 26-12-2018

Due date of filing GST Annual Return is extended
* Due date of filing GST Annual returns in FORM GSTR-9, FORM GSTR-9A & reconciliation statement in FORM GSTR-9C for the F.Y. 2017-18 shall be further extended till 30.06.2019.
Change in GST rate from 28% to 18%
Pulleys, transmission shafts and cranks, gear boxes etc. falling under HS Code 8483.
Monitors and TVs of upto screen size of 32 inches.
Re-treaded or used pneumatic tyres or rubber
Power bank of lithium ion batteries. Lithium ion batteries are already at 18%.
Digital cameras and video camera recorders
Video games consoles and other games and sports requisites falling under HS Code 9504.
Change in GST rate from 28% to 5%
Parts and accessories for the carriages for disabled persons
Change in GST rate from 18% to 12%
Cork roughly squared or debagged.
Articles

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for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
Rate of 5%/18% to be applied based on transaction value of footwear
Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)
Change in service tax rates:
Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).
GST rate on cinema tickets above ₹ 100 shall be reduced from 28% to 18% and on cinema tickets upto ₹ 100 from 18% to 12%.
GST rate on third party insurance premium of goods carrying vehicles shall be redu

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ify that the services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act, 1966.
To clarify to West Bengal that services provided by Council/ Board of Primary/ Secondary/ Higher Secondary Education for conduct of examination to its students are exempt.
To clarify that “printing of pictures” falls under service code “998386: Photographic and videographic processing services” of the scheme of classification of services attract GST @18% and not under “998912: Printing and reproduction services of recorded media, on a fee or contract basis”which attracts GST @12%.
To clarify that leasing of pumps and reservoirs by the OMCs to petrol pump dealers is a mixed supply and the Licence Fee Recovery (LFR) charged for the same shall be leviable to GST @ 28%, the rate applicable to pumps. Leasing of land and buildings along with equipment shall fall under heading 9972 (real estate services) and attract GST rate of 18%.
To clarify that the incentive

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y other person based on a contractual arrangement with such institutions.
To clarify that the banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent.
To issue a clarification to Food Corporation of India (FCI) that the service provided by godown owner in case of lease with services, where the godown owner, besides leasing the warehouse, undertakes to carry out activities of storage and preservation of stored food grains, is the service of storage and warehousing of agricultural produce and the same is exempt.
GST on solar power generating plant and other renewable energy plants:
GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants a

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vement of Rigs, Tools & Spares and all goods on wheels on own account where such movement is not intended for further supply of such goods but for the provision of service does not involve a supply (e.g., movement of testing equipment etc.) and is not be liable to GST.
The goods with description Bagasse Board [whether plain or laminated] falling under Chapter 44 attract GST at the rate of 12%.
Concessional GST rate of 5% applies to the LPG supplied in bulk to an OMC by refiners/fractioners for bottling for further supply to household domestic consumers.
Manure of determination of classification of vitamins, provitamins etc. as animal feed supplements
Sattu or Chattua falling under HS code 1106 and attracts the applicable GST rate.
Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP falls under HS code 3923 and attract 18% GST rate.
18% GST is applicable on wood logs including the wood in rough/log used for pulping.
Turbo charger is c

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y on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be levied only on the amount payable through the electronic cash ledger.
Changes in GST Annual Return Form
Present return format has heading to specify the supplies as declared in returns filed during the year need to be furnished. Now, the heading is amended to specify the supplies as made during the year.
Presently, HSN code of all inward supplies need to be furnished in GST Annual return. Now, it is proposed that HSN code of those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies shall be declared.
All invoices pertaining to previous year irrespective of month in which such invoice is reported in FORM GSTR-1 by the supplier and auto populated in GSTR-2A of the recipient would be auto-populated in Table 8A of GST Annual return.
ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C.
Monthly Return

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ot basis. The modalities for the same shall be finalized shortly.
All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01 shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax officer for submission of a refund application. GSTN will enable this functionality on the common portal shortly.
Following types of refunds shall be made available through FORM GST RFD-01A
* Refund on account of Assessment / Provisional Assessment / Appeal / Any other Order.
* Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa
* Excess payment of tax and
* Any other refund
In case of applications for refund in FORM GST RFD-01A (except those relating to refund of excess balance in the cash ledger) which are generated on the common portal before the roll out of the functionality described and wh

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ived only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019 / quarters July, 2017 to December, 2018 by such taxpayers shall be extended till 31.03.2019.
Late fee on delay filing of return is waived
Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months/quarters July, 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019.
E-way bill can be generated only if GST return is filed
Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN / NIC make available the required functionality.
Changes made in the Act would be notified w.e.f. 01.02.2019:
Changes made by CGST (Amendment) Act

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e collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues.
The Group of Ministers will be assisted by the committee of experts from Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning), who would study and share the findings with GoM. The GoM in turn would give its recommendation to the GST Council. The members of the GoM and the Committee of experts would be announced in due course of time.
The requisite Notifications/Circulars for implementing the above recommendations of the GST Council shall be issued shortly.
Reply By Devender Wadhwa as =
Dear Sir,
Can you please discuss that this change in the GST rate affects the sector majorly and how much inflation is reduced (Expected)?
Dated: 27-12-2018
Reply By KASTURI SETHI as =
Dear Sh.Kalyani Ji,
Nice compilation. It is ready recknor and useful.
K.L.SETHI
Dated: 27-12-2018
Reply By Gan

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Key updates of 31st GST Council Meeting Dec 2018
By: – Sandeep Rawat
Goods and Services Tax – GST
Dated:- 26-12-2018

Below are the Key updates of 31st GST Council Meeting
1.) GST Rates of 7 items reduced from 28% to 18% . Items include tyres, VCR, billiards & snookers and lithium batteries.
2.) GST Rate of 33 items have come down from 18% tax slab to 12% and 5% tax bracket as they are common man's consumption goods. These items include Third Party insurance Vehicle and Solar Power Systems
3.) Only 34 items will be taxed at 18% GST Rate or more
4.) All items except luxury goods would be taxed under 28% GST Rate
5.) The GST Council is also looking into introducing composition scheme for the real estate sector. A view

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Export benefits to IT and ITES Industries under GST
Query (Issue) Started By: – Shyam Agarwal Dated:- 26-12-2018 Last Reply Date:- 1-1-2019 Goods and Services Tax – GST
Got 13 Replies
GST
Sir, IT & ITES Industries operates its business having head office in India and having branches outside india. Now In order to providing services to its foreign clients, part of service provision is done from India and rest part is completed by its foreign branches but Invoice to all foreign clients is done from india (from head office).whether it be export of service a OR Not to be export by contending that part of service is performed from outside india i.e.by foreign branch?
Reply By Mahadev R:
The Reply:
One of the condition for export of service is that the supplier of service is located in India. In this case, to the extent service provided by foreign branch could be considered as non-export. However, here we need to understand if this foreign branch is providing service to foreig

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ia even without Consideration.
Therefore, the transaction between head office in India and foreign branch outside india is clear. However the concerned query is about services provided collectively by foreign branch and Indian head office to the Foreign customer (who are not related persons) whether the same should be qualified as an Export because one may contend that as per one of condition for export is that supplier should be in India and in the said situation location of supplier is technically in India as well as outside india though Agreement with foreign customers are executed by Indian head office, Invoices are issued by Indian head office as well as payment in foreign currency is also received by Indian head office. Further, as per information from some sources it was discussed in 31st GST Council meeting, the same issue was discussed and official said that as long as transaction is permitted by RBI the same should be considered as a an Export. Is it correct? Please suggest.

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ot enjoy the benefits of export as long as Agreement for service is with Indian head office and payment in foreign currency is also received by Indian head office. Please elaborate your suggestions as your guidance is always useful for me.
Reply By KASTURI SETHI:
The Reply:
What does ITES stand for ?
Reply By Shyam Agarwal:
The Reply:
Sir, ITES stands for Information Technology Enabled Services.
Reply By KASTURI SETHI:
The Reply:
Dear Sh.Agarwal Ji,
With reference to second part of the query, it is not taxable. It cannot be termed as export of service.This service is being provided from non-taxable territory(jurisdiction) to non taxable territory(jurisdiction) by foreign branch, a distinct person as intermediary. Place of supply is covered under Section 13 (8) (b) of IGST Act, 2017. Also read the following:-
Extract of FAQ for GST on IT/ITES dated 18.8.2017
Question 11 : I am an Indian Company who makes software and sells it outside the country. I have hired a firm (no

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usiness;obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(3) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and
(4) in absence of such places, the location of the usual place of residence of the supplier.
The location of 'C' is to be determined by applying the criterion from (2), or (3), or as the case may be, (4).
I am of the view that Notification No.15/18-IT-(Rate) dated 26.7.18 is not applicable for the purpose of exemption from IGST.
Reply By Mahadev R:
The Reply:
More clarification on this in today's circular no.78
Reply By KASTURI SETHI:
The Reply:
In the situation explained by the querist, today's circular cannot be applied here. The present situation is not import of service. Hence no RCM.
Reply By Shyam Agarwal:
The Reply:
Respected both of Experts, As Mahadev Sir h

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Profiteering Allegations in Garment Supply Deemed Unsustainable u/s 171 of CGST Act, 2017.
Case-Laws
GST
Profiteering – supply of Readymade Garments – benefit of reduction in the rate of tax

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Profiteering Allegations on Panasonic LED Supply Dismissed Due to Post-GST Tax Rate Change Under CGST Act Section 171.
Case-Laws
GST
Profiteering – supply of “Panasonic LED TH43E200DX#45580

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Mattress Price Hike Due to Tax Increase Not Profiteering, Says Section 171 of CGST Act 2017.
Case-Laws
GST
Profiteering – supply of Peps Spring Koil Bornell Normal Maroon 75x60x6″ Mattress –

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M/s M. Junction Services Ltd. Versus Commr. of CGST & Central Excise, Kolkata North
Service Tax
2019 (1) TMI 66 – CESTAT KOLKATA – TMI
CESTAT KOLKATA – AT
Dated:- 26-12-2018
S.T. Appeal No.78641/18 – FO/A/77158/2018
Service Tax
SHRI P. K. CHOUDHARY, JUDICIAL MEMBER
Shri Nanda Kishore Kothari & Shri Akshay Goenka, both C.As. for the Appellant (s)
Shri S. Mukhopadhyay, Supdt.(A.R.) for the Revenue
ORDER
Per Shri P.K. Choudhary :
The present appeal is listed for admission today. After hearing both sides and despite the amount involved in this case being below the threshold of Rs. 2.00 lakhs, the appellant intends to contest the issue on merits, which is admitted.
3. With the consent of both sides, the appeal itse

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amount of Rs. 1,72,331/- as service tax (including cess) already paid on 30.03.2012, should not be appropriated.
(ii) An amount of Rs. 67,253/- calculated as interest should not be demanded and recovered from them in terms of Section 75 of the said Act and the said amount of Rs. 67,253/- already paid, should not be appropriated.
(iii) Penalty should not be imposed upon them in terms of Section 78 of the said Act for violation of the above mentioned provisions of the said Act and the said Rules.
(iv) Penalty should not be imposed upon them in terms of Section 77 of the said Act for non-obtaining Service Tax Registration and non-submission of ST-3 Returns for material period.
5. The Adjudicating Authority confirmed the demand of Service T

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vice tax along with interest had already been paid by the assessee, for which, separate show-cause notice was issued, which culminated into a separate proceeding altogether. Subsequently, present show-cause notice has been issued for demanding service tax on the amount of Tax Deducted at Source (TDS), which was inadvertently left out by the assessee. On being pointed out, they immediately paid the amount of Rs. 1,72,331/- along with interest amounting to Rs. 67,253/- and intimated to the jurisdictional authorities.
8. I find that there is no material available on record to establish the allegation of suppression of facts, mis-declaration etc. with an intent to evade payment of service tax. On the other hand, the appellant assessee immediat

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FEDERATION OF GUJARAT WEAVERS WELFARE ASSOCIATION Versus UNION OF INDIA
GST
2019 (1) TMI 358 – GUJARAT HIGH COURT – 2019 (22) G. S. T. L. 9 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 26-12-2018
R/SPECIAL CIVIL APPLICATION NO. 20626 of 2018
GST
MS HARSHA DEVANI AND DR A. P. THAKER, JJ.
For The PETITIONER (s) : MR DHAVAL SHAH (2354)
ORAL ORDER
(PER : HONOURABLE MS. JUSTICE HARSHA DEVANI)
Mr. Prakash Shah learned advocate with Mr. Dhaval Shah, learned advocate for the petitioner invited the attention of the Court to sub-section (3) of Section 54 of the Central Goods and Services Tax Act, 2017, to submit that the clause (ii) thereof provides that where the credit has accumulated on account of rate of tax on inputs being

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It was submitted that at the same time, vide clause (ii) of the proviso it has been provided that in respect of said goods, the accumulated input tax credit lying unutilized in balance, after payment of tax for and upto the month of July, 2018 on the inward supplies received up to the 31st day of July, 2018 shall lapse. It was submitted that sub-section (3) of section 54 empowers the Government to notify the goods in respect of which the proviso to subsection (3) of section 54 would not apply. However, the said section does not in any manner empower the Government to provide for lapsing of the input tax credit. It was submitted that the respondents are therefore not granting refund to the petitioner unless the petitioner reverses the input

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INDOFIL INDUSTRIES LTD Versus STATE OF GUJARAT
GST
2019 (2) TMI 1151 – GUJARAT HIGH COURT – 2019 (30) G. S. T. L. J53 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 26-12-2018
R/SPECIAL CIVIL APPLICATION NO. 20559 of 2018
GST
MR HARSHA DEVANI ANXD DR A. P. THAKER, JJ.
For The Respondent (s) : UCHIT N SHETH (7336)
For The Respondent (s) : ADVANCE COPY SERVED TO GOVERNMENT PLEADER/PP (99)
ORAL ORDER
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)
1. Mr. Uchit Sheth, learned advocate for the petitioners invited the attention of the court to the provisions of section 7 of the Integrated Goods and Services Tax Act, 2017, to submit that by virtue of sub-section (5) thereof, supply of goods or services or both to or by a Special E

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Exemption of Igst
Query (Issue) Started By: – Piyush Kumar Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Customs – Exim – SEZ
Got 4 Replies
Customs
Hello sir
If I export an item to Nepal which I purchased locally from Bihar paying 6+6 cgst and igst…will the sales will be applicable for exemption from Igst. By
Giving letter of undertaking And how I will claim my Gst paid for purchase?
Reply By KASTURI SETHI:
The Reply:
Yes. You can export and claim refund of GST paid from t

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Taxability of Milk Chilling & Storage Charges
Query (Issue) Started By: – sanjeev agrawal Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 3 Replies
GST
As per Notification No. 12/2017 dated 28 June, 2017
Agriculture produce means " Any produce out of cultivation of plants and rearing of all life forms of animals except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done of such processing is done as is usually done by a cultivator or producer which does not alter its essential charateristics but makes it marketable for primary market."
As per S. no. 54 Any services relating to cultivation of plants and re

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e) dated 28.6.17 as amended:-
25.
0401
Fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk
26.
0403
Curd; Lassi; Butter milk
27.
0406
Chena or paneer, other than put up in unit containers and bearing a registered brand name;
Reply By KASTURI SETHI:
The Reply:
Chilling does not amount to manufacture as it does not change the character of the goods. It avoids to spoiling milk. CESTAT Delhi and Jaipur have decided the issue in favour of assessee but the department has filed civil writ petition in the Supreme Court. In my view, it conforms to the definition of 'agriculture produce'. Howeve

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admitted the Diary No. 10936 of 2017 filed by Commissioner of Central Excise, Jaipur against the CESTAT Final Order No. 51354/2016, dated 28-4-2016 as reported in 2018 (10) G.S.T.L. 66 (Tri.-Del.) = 2016 (4) TMI 1144 – CESTAT NEW DELHI (Acclaim Foods Private Limited v. Commissioner).
The Appellate Tribunal in its impugned order had held that the activity of chilling milk to required temperature, for and on behalf of customer, in its plant by assessee, for carrying in insulated tankers for further processing at customer's plant, as not covered under Business Auxiliary Service following decision in 2015 (37) S.T.R. 660 (Tri. – Del.) = 2014 (6) TMI 493 – CESTAT NEW DELHI SHARMA ICE FACTORY Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR-I. The

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Indian Supplier to Duty-Free Shop Not 'Export' Under GST; Rule 96-A Bond/LUT Required for Duty-Free Supplies.
Case-Laws
GST
Exemption from GST – duty free shop – As the supply to a DFS by an Indian supplier is not to 'a place outside India', therefore, such supplies do not qualify as 'export of goods' under GST. Consequently, such supplies cannot be made without payment of duty by furnishing a bond/letter of undertaking (LUT) under rule 96-A of the CGST Rules, 2017.
TMI Updates – Hi

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Court Allows Interrogation of Custodial Accused in GST Evasion Case Involving Fake Invoices; Statements to be Recorded.
Case-Laws
GST
Permission to interrogate and record statement of accused

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Bail Canceled for Accused in Fake Invoice Scam Involving Bogus Companies and Dummy Proprietors.
Case-Laws
GST
Cancellation of Bail – opening bogus companies in the name of dummy proprietors a

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GST and Import Duty Levied on Goods from Duty-Free Shops Before Immigration Clearance; Customs Action Upheld.
Case-Laws
GST
Levy of GST / import duty goods purchase from Duty free shops – sho

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Cars for handicapped
Query (Issue) Started By: – Tarun Agarwal Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Dear sir iiam a handicapped person with below knee amputation , as per GOVT norms there is some concession in GST for handicapped and they have to get a certificate from heavy industries to avail that , there is a form where doctor in which Doctor and CMO of the Hospital certified and on the basis of that ministry issues the cert

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Interest Calculation u/s 50 of CGST Act
Query (Issue) Started By: – PANKAJ KUMAR Dated:- 25-12-2018 Last Reply Date:- 27-12-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Hi..
We had liability for the month of July 2018 ₹ 50 Lakh and CENVAT of ₹ 45 Lakh, net liability comes to ₹ 5 lakh. my query is on which amount we have to pay interest u/s 50 of CGST act.
We have to pay interest on ₹ 50 Lakh as liability still not set off at the portal?
Reply By KASTURI SETHI:
The Reply:
You are required to pay interest on RS.50 lakhs as Liability was not set off and not any amount was credited into Govt . Account.
Reply By PAWAN KUMAR:
The Reply:
rightly explained by kasturi sir. on total amount of rs. 50 l

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Ancillary supplies to Health Care Services
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 25-12-2018

Whether medicines, consumables and implants used in the course of providing health care services are taxable?
Introduction
Health care services always enjoy a special place in the revenue laws. Generally, health care services provided to treat the deficiency and for diagnosis of any disease is exempted form payment of tax. In this article author aims to discuss the implication about the taxability of the ancillary supplies made to patients during the course of provision of health care services.
Meaning of Health Care Services
Health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic

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nt. The out-patients are those who visit the hospital. for routine check-ups or clinical visits.
The medicines, consumables and implants are generally used in the course of providing services to the patients admitted for diagnosis or treatment in the hospital or clinical establishment is naturally bundled in the ordinary course of business. Now the moot question arises whether the said medicines, consumables and implants used for providing services to the patients admitted are taxable as an independent supply or whether the supply of medicines, consumables and implants alongwith health care services shall be classified as supply of health care services or supply of medicines.
Naturally bundled services
The concept of naturally bundled services was explained in the Education Guide issued by the C.B.E. & C. in the year 2012 (the Education Guide) and the same is borrowed in explaining the meaning of naturally bundled services under GST law vide CBEC Flyer No 4 dated 1-1-2018. The rele

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ertain services supplied during provision of health care services by hospitals. The relevant extract is reproduced here for quick reference:-
* Retention Money – Hospitals charge the patients, say, ₹ 10000/- and pay to the consultants/technicians only ₹ 7500/- and keep the balance for providing ancillary services which include nursing care, infrastructure facilities, paramedic care, emergency services, checking of temperature, weight, blood pressure, etc. Will GST be applicable on such money retained by the hospitals?
Healthcare services have been defined to mean any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India [para 2(zg) of notification No. 12/2017-C.T. (Rate)]. Therefore, hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healt

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atients are admitted to the hospital when they are extremely ill or have severe physical trauma. As far as an in-patients are concerned, hospital is expected to provided lodging, care, medicine and food as part of treatment under supervision till discharge from hospital. The nature of the various services in a bundle of services will help in determining whether the services are bundled in the course of business. If the nature of services is such that one of the services is the, main services and other services combined with such services are in the nature of incidental or ancillary services which help in better utility of main services then the various element of the services are said to be naturally bundled in course of business. Hence the medicines, implants, room provided on rent, dietary food advised by nutritionists etc. used in course of providing. Health care services to the patients admitted for diagnosis or treatment in the hospitals or clinical establishment is undoubtedly na

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ves no control over his continuous treatment. As far as an outpatient is concerned there is no difference for procuring medicine either from the dispensing outlet within the hospital or from outside the hospital. In both places medicines dispensed based on prescription. Hence there is no privilege for the hospitals that are dispensing medicines to outpatients. Therefore pharmacy run by hospital dispensing medicine to outpatient or bystanders or others can be treated as individual supply of medicine not covered under the ambit of heath care services. Hence such supply of medicine and allied goods are taxable.
Conclusion
In view of the above analysis, legal canons and decision by AAR in 2018 (18) GSTL 831 (AAR-GST) IN RE: KIMS HEALTH CARE MANAGEMENT LTD [ 2018 (11) TMI 281 – AUTHORITY FOR ADVANCE RULINGS, KERALA ], the conclusions can be drawn as under:-
Situation
Kind of service
Taxability
Remarks
I
Out-patient services
(Diagnosis or Treatment)
Not-taxable
Such service shall

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GST Registration
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 24-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 2 Replies
GST
XYZ registered with GST in Maharashtra, have taken service contracts of machine maintenance, under which they depute their service team on sites at different states. At the customers site, the customer is providing accommodation facility in their guest house since the service contract is for a longer duration. 1) Is XYZ requi

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ITC OF RCM PAID ON GTA SERVICES AVILED ON NON TAXABLE SUPPLY
Query (Issue) Started By: – DHARMENDRA SONI Dated:- 24-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir ,
We are supplier of Taxable & Exempt Product . We are paying RCM on GTA services availed for inputs of both type of supplies. Kindly suggest us can we take ITC of RCM paid for both types of supplies.
Reply By KASTURI SETHI:
The Reply:
Under RCM, first you will pay in cash.

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GST INPUT ON SALE PROMOTION
Query (Issue) Started By: – neeta gupta Dated:- 24-12-2018 Last Reply Date:- 25-12-2018 Goods and Services Tax – GST
Got 2 Replies
GST
If we buy t-shirts, key chains etc. and send this for free distribution along with supply for sale promotion. Can we get the input GST on purchase?
Also distribute some gifts under scheme, Can we use GST input?
Reply By KASTURI SETHI:
The Reply:
If such promotional scheme is without any written contract, ITC will not b

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Switchover of GST registration from Compositon to regular
Query (Issue) Started By: – rohit khan Dated:- 24-12-2018 Last Reply Date:- 25-12-2018 Goods and Services Tax – GST
Got 2 Replies
GST
If a business is Registered under Composition Scheme of GST and crosses Limit of 1.5 crores within the financial year, Business registration has to change to Regular. and the business has to submit GSTR-4 for the current quarter and GSTR-1 also from the month in which he crossed the limit. But

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GST Rate Set at 5% for Retrofitting Twin Pipe Air Brake Systems on Railway Wagons as Composite Supply.
Case-Laws
GST
The Applicant’s contract for retro-fitment of Twin Pipe Air Brake System

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Agricultural Soil Testing Minilab Reagents Classified Under GST Tariff Heading 9027, Not Eligible for Exemption Under 8201.
Case-Laws
GST
Classification of goods – rate of tax – Agricultural

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