TMI Blog2018 (9) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... nition clause 2(zz) of the CGST Notification No 12/2017- Central Tax (Rate) dated 28-06-2017 and KGST Notification (12/2017) No FD 48 CSL 2017 Bengaluru dated 29-06-2017. 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. 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. Input tax credit - Held that:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the Advance Ruling Nov No. KSA ADRG 4/2018 dated 21st March 2018 = 2018 (5) TMI 1704 - AUTHORITY FOR ADVANCE RULING - KARNATAKA BRIEF FACTS OF THE CASE 1. M/s. Tathagat Heart Care Centre LLP, is a Cardiology Specialized Hospital running on a premises taken on lease. The premises are used for treatment of heart patients as a lifesaving activity with latest equipment / machineries. Critical care patients are admitted in special rooms / general wards with lifesaving support devices, beds and oxygen supply, ICU with 24 x 7 attendance for timely monitoring of the patients. They have taken a premises on rental basis for heart care services. 2. The Appellant had filed an application for Advance Ruling under section 98 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed due to nil tax payable under GST law on supply of medical services to the patients. iv. That there is no provision to get refund of ITC to the extent of GST paid/payable on the rent of the premises. Hence, the very purpose of payment of GST on rent does not serve any purpose. Thus, they are put to great financial hardship on this aspect which has to be adjudicated by the Appellate Authority for Advance Ruling. v. In view of the above, the Appellant pleaded that the impugned order be set aside. Personal Hearing: 5. The Appellant was called for a personal hearing on 28.08.2018 and was represented by Dr. Mahantesh Charantimat, Chairman and Managing Director of M/s. Tathagat Heart Care Centre LLP. During the hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable for premises, taken on lease by the Applicant. b) Since the Appellant does not have any taxable output supply. the GST paid on the rent of the premises cannot be set off against any output supply. In other words, ITC of the GST paid on the rent cannot be availed as credit as the output supply is not taxable. c) There is no provision to get refund of ITC 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 CGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing 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 Notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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