Restaurant or canteen
Query (Issue) Started By: – Ravikumar Doddi Dated:- 10-1-2019 Last Reply Date:- 14-1-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Applicant running a canteen in a Hospital, Hospital provides power supply by a sub meter to the canteen, which bills are coming ₹ 1 lak and above per month, hospital collecting 18% GST, is it correct sir, if any exemption please provide Notification/circular and HSN/SAC Code on which they are collecting 18%
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Hospital is correct. HSN Code is 9969. The relevant extract of Notification No. 11/17-Central Tax (Rate) dated 28.6.17 is reproduced as under :
Sl.No.
Chapter, Section, Heading, Group or Service Code (Tariff)
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8 clarifying the notification no. 46/2017 C.T(R) dated 14th November 2017.
Only way to avail exemption from GST levy by Hospital on this transaction is through Pure Agency Concept.
Pure Agent is the person enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; does not use for his own interest such goods or services so procured and receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.
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