Monday, August 17, 2020

GST applicable on food supplied to hospital – AAR

GST applicable on food supplied to hospital – AAR

TELANGANA STATE AUTHORITY FOR ADVANCE RULING

The Question and Ruling as follows :

22. In terms of the above amendment, from 01.10.2019, the supply of food by the applicant to hospitals fall under entry no. (ii) of S. No. 7 of Not. No. 11/2017 – State Tax (Rate), issued in G.O.Ms No. 110, Revenue (CT-II) Department, Dt. 29-06-2017 and is subject to 5% GST with the condition of non-availability of input tax credit.

23. Thus, the supply of food to hospitals by the applicant depends on the time period (during which they are supplied) and will be subjected to tax as per the provisions of Not. No. 11/2017 – State Tax (Rate), issued in G.O.Ms No. 110, Revenue (CT-II) Department, Dt. 29-06-2017 amended from time to time.

In view of the forgoing facts, the Ruling is given as under :

Ruling

Q1. 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

Q2. 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 5%)

Provided that credit of input tax charged on goods and services used in supplying the service has not been taken.

Read Ruling

Tags: Judgement, GSTAdvance Ruling

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