IN RE: M/s. TATHAGAT HEART CARE CENTRE LLP,
GST
2018 (9) TMI 1340 – APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA – 2018 (17) G. S. T. L. 365 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA – AAAR
Dated:- 5-9-2018
KAR/AAAR/Appeal-01/2018
GST
SRI A.K. JYOTISHI, AND SRI SRIKAR M.S., MEMBER
PROCEEDINGS
(Under Section 101 of the Central Goods and Service Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017)
At the outset, we would like to make it clear that the provisions of both the CGST Act and the KGST Act are in pari materia and have the same provisions in like matters, and differ from each other only on a few specific provisions; therefore, unless a mention is particularly made to such a dissimilar provision, a reference to the CGST Act would also mean a reference to the corresponding similar provisions under the KGST Act.
The present appeal has been filed under section 100 of the Central Goods and Service Tax Act, 2017
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T is leviable on the rent payable by a hospital supplying lifesaving services (cardiology and emergency services).
3. It was decided by the Karnataka Advance Ruling Authority vide Ruling No. KSA ADRG 4/2018 dated 21st March 2018 = 2018 (5) TMI 1704 – AUTHORITY FOR ADVANCE RULING – KARNATAKA that GST is leviable on the rent paid / payable for premises taken on lease by the Applicant.
4. Aggrieved by the said ruling of the Authority (hereinafter referred to as 'impugned order'), the applicant has filed an appeal under section 100 of the CGST Act, 2017 / KGST Act, 2017 on the following grounds:
i. The Advance Ruling Authority has erred in holding that GST is leviable on the rent paid / payable on premises, taken on lease by the Applicant, under the facts of the case and has not considered grounds of appeal / statement of Applicant's interpretation of law or facts, as the case may be in right earnest thus violating the principals of natural justice.
ii. The Appellant is not required t
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08.2018 and was represented by Dr. Mahantesh Charantimat, Chairman and Managing Director of M/s. Tathagat Heart Care Centre LLP. During the hearing the authorized representative reiterated the grounds of appeal and also made written submissions wherein they drew attention to Rule 89(h) of KGST Act which says that invoice received and issued during the tax period in a case where the claim pertains to refund of any unutilized input tax credit under sub-section (3) of section 54 where the credit has accumulated on account of output supplies other than nil rated or fully exempted supplies.
6. He pleaded that the Hon'ble Appellate Authority for Advance Ruling should pass a ruling on the applicability of Rule 89 so that they can pursue the refund of input tax credit paid on rent taken on premises in the interest of natural justice.
DISCUSSION AND FINDINGS
7. The Appellant is running a Cardiology Specialized Hospital which provides healthcare services. The said hospital is run on the premi
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to the extent of GST paid/payable on rent of premises and hence the purpose of paying the GST on rent of premises does not serve any purpose. The Appellate Authority is required to pass a ruling on the applicability of Rule 89(h) of the KSGT Rules so that the Appellant can pursue the refund of input tax credit paid on the rent taken on the premises.
9. In terms of CGST Notification No 11/2017 – Central Tax (Rate) dated 28-06-2017 and KGST Notification (11/2017) No FD 48 CSL 2017 Bengaluru dated 29-06-2017, CST is leviable @ (CGST @ 9% + SGST @ 9%) on the rent paid / payable for premises taken on lease by the Appellant for running the hospital vide Sl.No.16 (Real Estate Services) of the said Notifications. The appellant has stated that the AAR has erred on this point. The plea made by the Appellant before us is that the input tax credit of the GST paid on the rent cannot be availed as credit by them since their output supply is not taxable and hence they should be allowed to get a ref
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or other similar arrangements in respect of immovable property. By virtue of these Notifications, services by way of renting of residential building for use of residence only is exempt from levy of GST vide Sl.No.12 of the said Notifications.
c) In terms of CGST Notification No 11/2017 – Central Tax (Rate) date 28-06-2017 and KGST Notification (11/2017) No FD 48 CSL 2017 Bengaluru dated 29-06-2017. GST is leviable @ 18% (CGST @ 9% + SGST @ 9%) on the rent paid / payable for premises taken on lease by the Applicant for running the hospital vide Sl.No.16 (Real Estate Services) of the said Notifications.
12. As regards the plea that this Authority is required to pass a ruling on para 8(b) and observe that these issues are outside the realm of our consideration. The scope of the Appellate Authority for Advance Ruling under section 101 of the Act is limited to passing such order, as it thinks fit, confirming or modifying the ruling appealed against or referred to. There was no question r
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