Home Case Index All Cases GST GST + AAR GST - 2020 (4) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 592 - AAR - GSTInput tax credit - supply of port services - Purchase of medicines for employees as prescribed by their doctor from outside on contractual basis - Purchase of movable medical equipment at hospital - AMC for repair and maintenance of residential colony and hospitals and school - Telephones & Mobiles at residence of officers and at hospitals - Caretaking /housekeeping services at Guest House - all the expenses are incurred for maintaining its employees. HELD THAT:- As per clear reading of Sub Section (1) of Section 16 and sub section (1) of Section 17 of the CGST Act, 2017, it is clear that a registered person is entitled to take credit of input tax charged on supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business only - In that case, the applicant is incurring expenses for providing common facilities to their employees within the residential colony where the quarter has been given on nominal fees i.e. Hospitals, Sports Complex, garden, Guest House for official visitors and school for employee’s children and the same is not related to furtherance of their business/output service i.e. port service. Also, the applicant is engaged in supply of port services to various clients. Said expenses are for providing common facilities to their employees within the residential colony and the same are not relates to furtherance of their business/output service i.e. “Port Service”. It is very clear from the provisions of Sub Section (1) of Section 16 and Sub section (1) of Section 17 of the CGST Act, 2017, that a registered person is entitled to take credit of input tax charged on supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business only - the applicant is not entitled to take credit of input tax charged in respect of above mentioned expenses as the same is not used in furtherance of their business. Credit not allowed.
|