GST Library

Login | Register

Best GST Library

Contact Us

Subscription Plans

GST News | Updates

GST Calendar

GST Diary

GST Case Laws

GST Notifications, Circulars, Releases etc.

Act & Rules

Act & Rules (Multi-view)

Act & Rules (E-book)

GST Rates

GST Rates (E-book)

HSN Classification

GST Council Meetings

GST Set-off Calculator

ITC Reversal Calculator

E-invoice Calculator

Inverted Duty Calculator

GSTR-3B Manual

GSTR-9 Manual

GSTR-9C Manual

GST Forms

Full Site Search

E-way Bill

Finance Bill 2024

GST Evasion in India

GST Videos


GST e-books

GST Domains Sale

About Us

Our Services

Contact Us

TaxReply India Pvt Ltd
®
Subscribe Free GST updates on...

Join on twitter

Join GST Group 119
Hindi
English

Supply of food to Hospital on outsourcing basis to hospital patients shall be chargeable to 5% GST with no input w.e.f. 27.07.2018: Says AAR

Prior to 27.07.2018, GST @ 18% was chargeable on the above supply.

Facts of Case

The applicant is engaged in the business of supply of food to MNG Cancer Hospital Hyderabad (Autonomous Body) on out sourcing basis to patients of MNG Cancer Hospital.

The applicant requested to clarify:

(a) whether Food supplied to Hospitals i.e. Government Hospital, Private Hospitals and Autonomous Bodies on outsourcing basis, GST is chargeable?

(b) If GST is chargeable what is the tax rate? If no GST is chargeable on the Supply of food, the GST already paid by the Hospitals and remitted to Government is recoverable from their future bills?

Held by Authority

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.

Serial number 7

(3)

(4)

(5)

“(i) Supply of ‘hotel accommodation’ having value of supply of a unit of accommodation above one thousand rupees but less than or equal to seven thousand five hundred rupees per unit per day or equivalent.

6

-

(ii) Supply of ‘restaurant service’ other than at ‘specified premises’

2.5

Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]

(iii) Supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms.

2.5

Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]

(iv) Supply of ‘outdoor catering’, at premises other than ‘specified premises’ provided by any person other than-

(a) suppliers providing ‘hotel accommodation’ at ‘specified premises’, or

(b) suppliers located in ‘specified premises’.

2.5

Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation (iv)]

(v) Composite supply of ‘outdoor catering’ together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) at premises other than ‘specified premises’ provided by any person other than-

(a) suppliers providing ‘hotel accommodation’ at ‘specified premises’, or

(b) suppliers located in ‘specified premises’.

2.5

Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation (iv)]

(vi) Accommodation, food and beverage services other than (i) to (v) above Explanation:

(a) For the removal of doubt, it is hereby clarified that, supplies covered by items (ii), (iii), (iv) and (v) in column (3) shall attract State tax prescribed against them in column (4) subject to conditions specified against them in column (5), which is a mandatory rate and shall not be levied at the rate as specified under this entry.

(b) This entry covers supply of ‘restaurant service’ at ‘specified premises’

(c) This entry covers supply of ‘hotel accommodation’ having value of supply of a unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.

(d) This entry covers supply of ‘outdoor catering’, provided by suppliers providing ‘hotel accommodation’ at ‘specified premises’, or suppliers located in ‘specified premises’.

(e) This entry covers composite supply of ‘outdoor catering’ together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) provided by suppliers providing ‘hotel accommodation’ at ‘specified premises’, or suppliers located in ‘specified premises’.

9

-”;

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.

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.


Best-in-class
Digital GST Library
Plan starts from
₹ 3,600/-
(For 1 Year)
Checkout all Plans
Unlimited access for
365 Days
✓ Subscribe Now
Author:

TaxReply


Aug 7, 2020


Post your comment here !

Login to Comment


GST News (Updates)


  Read more GST updates...

5
Mar
S
M
T
W
T
F
S
10 Mar

☑ Monthly | GSTR-7

GSTR-7 for the m/o Feb 2024 (For TDS Deductors u/s 51 - Section 39(3)).

☑ Monthly | GSTR-8

GSTR-8 for the m/o Feb 2024 [For TCS collection by E-Commerce Operators - Section 52(4)].

11 Mar

☑ Monthly | GSTR-1

GSTR-1 for the m/o Feb 2024 (Monthly Taxpayers) - N.No. 83/2020.

13 Mar

☑ Monthly | GSTR-5

GSTR-5 for the m/o Feb 2024 [Return by Non Resident Taxpayers - Rule 63 - Section 39(5)]

☑ Monthly | GSTR-6

GSTR-6 for the m/o Feb 2024 [For Input Service Distributors - Rule 65 & Section 39(4)].

☑ Monthly | IFF

IFF for the m/o Feb 2024 (QRMP Taxpayers, Optional) - Rule 59(2).

20 Mar

☑ Monthly | GSTR-3B

GSTR-3B for the m/o Feb 2024 (Monthly Taxpayer - Rule 61) - Either Compulsory taxpayer > 5 cr. or Voluntary taxpayer < 5 cr.

☑ Monthly | GSTR-5A

GSTR-5A for the m/o Feb 2024 [Return by OIDAR Service Providers - Rule 64.]

25 Mar

☑ Monthly | PMT-06

PMT-06 Monthly tax payment for Feb 2024 under QRMP Scheme [Rule 61(1)(ii) - Proviso to Section 39(7)].

Taxpayers have a choice to pay tax either, as per -  

A) Fixed Sum Method OR 
B) Self assessment basis subject to interest on short payment of taxes.
(Notification No.85/2020 - CT)
 
28 Mar

☑ Monthly | GSTR-11

GSTR-11 for the m/o Feb 2024 (Statement of inward supplies by persons having Unique Identification Number (UIN)).

31 Mar

☑ Annual | CMP-02

Last date to opt-in from regular scheme to composition scheme under GST for FY 2024-25 [Rule - 3 of CGST Rules.]

☑ Annual | GTA

Closing Date of window on GST Portal for Opt-in / Opt-out for Forward Charge / Reverse Charge by GTA for FY 2024-25 [Notification No.06/2023 - CT(R) dated 26.07.2023]