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TMI Blog2019 (7) TMI 1195X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Service Tax Act, 2017 in totality. ii. Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of "Educational Institution" is liable for registration under the provisions of section 22 of the Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 or it can remain outside the preview of registration in view of the provisions of section 23 of the said act as there is no Taxable supply. iii. In a situation if above questions are answered against the contention of the applicant institution then following further questions are being raised for the kind consideration by the Honourable Bench. a. Whether the fees and other charges received from students and recoupment charges received from patients (who is an essential clinical material for education laboratory) would constitute as "outward supply" as defined in section 2 (83) of The Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 and if yes then whether it will fall in classification entry at Sr. No 66 or the portion of nominal amount received from patients (who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where its main activity of Medical Education is substantially funded by the Government as a joint venture and then to decide whether the said Society can be brought within the ambit of the provisions of the CGST/MGST Act, particularly when there is no business activity carried out by the society. The related salient features are as under. a. Background of the Society vis-a`-vis the purpose of existence. i. The constitution of India had promised implementation of effective health delivery system to the rural masses in general & those unprivileged in particular. Govt. of India had setup several Committees (Working Groups) with the task of finding out the practical modalities addressing the said issue in general & the reason for utter failure of Govt., in attracting qualified & trained Doctors for going & settling down in rural areas. ii. One of the solutions recommended was to establish an innovative medical institution in rural area, which would set forth the required modalities for training the Doctors, who would not only develop an aptitude but also a capacity to understand the deep-rooted socio-economic reasons which were contributory factors for the failure of attaining the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dical Council of India (Here-in-after referred to as "MCI"). These Universities have laid down the detailed academic syllabus for Graduation and Post-Graduation studies through Statutes and every College is obliged to get affiliated with the concerned University in whose jurisdiction the said College falls. Besides academic syllabus, the standard and quality of imparting the medical education is also regulated by Medical Council of India. In absence of recognition by such regulators no medical personnel passing from such Medical College can practice in the field of medicine. vii. For grant of recognition, these regulators carry out inspection of the teaching facilities at College, on periodic basis and that too on subject to subject basis. For that matter, regulators have laid down norms specifying the floor area required for in housing teaching assignment, practical training for undertaking the operations, strength of teachers/nursing staff, their required academic qualifications/experience, requirements of teaching aids like equipment, implements, etc. which have to have complied with by every College engaged in imparting Medical Education. viii. The Medical College set up by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the students and teacher for getting them educated with the wide spectrum having a focus on advanced mechanised diagnosis, management of drugs, rehabilitation but at an affordable cost. These varied essential clinical materials, can be made available only by admitting the persons suffering from these various diseases, in the teaching lab, carryout Investigations, laboratory tests, X-rays, Citi Scan for diagnosing the diseases in more precise way and for that purpose, MGIMS is maintaining and managing 1000 Beds for imparting the theoretical and practical bedside Medical Education. Such teaching labs accommodating the stipulated teaching beds in which the persons suffering from these various diseases is admitted is known as "Kasturba Hospital". The said teaching lab is an integrated part in imparting systematic medical education like other labs in other branches of education. Thus "Kasturba Hospital" is not an independent establishment in isolation or a Hospital rendering healthcare services only since it is a teaching lab for the students of MGIMS. b. The Kasturba Health Society has been held a "State" i. Governing Council: Governing Council of MGIMS, as per University Statute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve)". Thus, the status of Kasturba Health Society as held by Judicial Forum is a "State". c. No activity being undertaken involving any profit motive neither carries on any business. i. Applicant Society is engaged in imparting the systematic education and training as per the syllabus stipulated by concern competent Authorities where MGIMS is the major activity of APPLICANT SOCIETY without having any profit motive or pre-designed factor of monetary gain and as such cannot be assumed to have engaged in carrying on any business. The scale of expenditure for running of MGIMS that is incurred for imparting the Education at affordable cost, runs over the Fees and charges recovered from Students and Patients. Substantial portion thereof is borne by Central and State Govt. This contention will be evident from the tabulated figures as under of last three years - Particulars FY 2015-16 FY 2016-17 FY 2017-18 Direct expenditure of Running of MGIMS 116,32,02,834 119,00,32,144 132,20,06,354 Expenses for Research, Management and Coordination of MGIMS 43,15,723 66,31,443 66,82,058 Total 116,75,18,557 119,66,63,587 132,86,88,412 Receipt from Students and Patients 28,06,28, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of Hospital Charges in instalments against issuance of receipts which does not amount to a realisation of sale proceeds for goods or services. Needless to mention that this process is modality to recovery the Hospital Charges at different points, different times for different heads for different inputs necessitated for investigation, diagnosis, medical treatments, surgical or procedures and that too keeping in mind the sole purpose of Convenience of Patient. iv. In order to maintain the teaching lab -The following activities are carried out are as under; a. The clinical materials (patients) are examined and the reasons, causes, symptoms and history of the sufferings is jotted down and making comparative thereof is done in OPD which is further supported by the pathological or microbiological or radiology investigations, and if necessary further investigation on highly technical and advanced equipment such as CT-Scan, MRI, Colour Doppler, Angiography, Gastro scope, Sonography and so on. If felt necessary Medicine is administered and after observing for some time they are allowed to go home. b. On having clinically diagnosed if needed the detailed plan of administering the med ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal rates for investigations, treatment and cost of medicines [Here-in-after referred as recoupment charges]. Further the teachers (Doctors) were empowered to waive partly or fully such recoupment charges towards consumed medicines and other items. Meanwhile, the Charity Commissioner by enforcing the provisions of Sec.41D of B.P.T. Act, 1950 made mandatory to administer the medical treatment free of cost to 10% of the intake capacity. Subsequently State & Central Govt. have stipulated to provide medical treatment at concessional rate to the patients falling within "BPL" category. f. RESEARCH WORK PURSUED Beside practical work on field the teachers and students are propagating their findings through Seminars, Workshops etc. & thus many countries having taken cognizance of the said research invited them in various workshops, seminars and conferences for sharing their knowledge with others. Further the findings of research in the field of medicines is recognised by domestic as well as international publications by providing suitable space for such publications. Such a list being too long is annexed herewith. As already stated, having regard to the Research activity The Central Boa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oluntary registration and as a result got registered with GSTN having registration No. 27AAATK2046G1ZV with effect from 21st July 2017. The copy of registration certificate and application is annexed herewith. iii. Though the applicant society got registered voluntarily under GST for the reasons mentioned above, it has not filed any returns since none of the activity was in the nature of "business" so as to fall within the meaning of "supply" as provided in section 2(87) of the GST Act and hence it is believed in bona fide that it is not obliged to comply with the provisions of GST Act. iv. However the jurisdictional GST authorities have issued one after another notices to the applicant society for adhering to the compliance with an obligation of filing of returns & therefore the applicant institution enquired with other Institutions, those who are having engaged in similar activity, where it is learnt that none of them is registered under GST act & further learnt that those who have attempted register, applied for the cancellation of registration which is duly cancelled by the jurisdictional GST authorities after considering their nature of activity. The copy of notices is ann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibaba and the turnover of such publication cannot be assessed to sales tax under the BST Act, on the facts & in the circumstances of the present case irrespective of the profit motive, it could not be said that the Trust either was a "dealer" or was carrying on trade, commerce etc. The Trust is not carrying on trade, commerce etc., in the sense of occupation to be a "dealer" as its main object is to spread message of Saibaba of Shiridi. * In case of Indian Institute of Technology v. State of U.P. [(1976) 38 STC 428 - Allahabad HC = 1974 (2) TMI 72 - ALLAHABAD HIGH COURT - observed that the statutory obligation of maintenance of the hostel which involved supply and sale of food was an integral part of the objects of the Institute. Nor could the running of the hostel be treated as the principal activity of the Institute. The Institute could not be held to be doing business. * In Dy. Commissioner (C.T.) v. South India Textile Research Assn. [(1978) 41 STC 197- Madras High Court = 1977 (1) TMI 143 - MADRAS HIGH COURT -observed that in the case of a research organization, which was purchasing cotton and selling the cotton yarn/cotton waste resulting from the research activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e levying tax the Services beyond the scope of Business or commercial nature are excluded and even those having flavour of commercial activities are also excluded to the larger extent by providing specific exemptions like those having registration U/S 12AA of the Income tax Act 1961. IV. Under the GST Regime. a. Even the GST Act is also not making any departure from the basic concept where the activity of Charitable Institution having the flavour of business is proposed to be taxed which is evident from the scope of Section 2(17) of The CGST Act defining "'Business" that gives the context to the above-mentioned term just like in earlier Tax laws, where the effective tax to be paid is always on business transaction only. b. A perusal of the definition of "outward supply" under MGST/CGST further clarifies this proposition where, as per Section 2(83) "outward supply"- in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business. c. It is clear, that only commercial transactions ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equency, continuity or regularity of such transaction; d. Supply or acquisition of goods including capital goods and sends in connection with commencement or closure of business; e. Provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; f. Admission, for a consideration, of persons to any premises; g. Services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation: h. Services provided by a race club by way of totalisator or a licence to book maker in such club; and i. An activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged us public authorities; From the above it would be clear as to what would mean business and therefore the same is needed to be confined as per the legal terminology - "Ejusdem Generis". Ejusdem Generis" would mean that where a law lists specific classes of persons or things and then refers to them in general, the general statements only apply to the same kind of persons or things specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction, will not be a supply at all. Further Section 16(1) in the context of eligibility of Input Tax credit again use the said the term which essentially signifies continuity in relation to a specified activity, whereas "in furtherance or' means anything done which assists or advances a particular act. Therefore, in simple words, the phrase "in the course of or furtherance of business" means something which is done during the continuance or for providing further assistance in advancing the overall business. The intention of the legislature is very clear that tax is payable only on any business transaction to facilitate seamless continuity. 1.03. Departmental Clarification with reference to Charitable Institutions. I. Press Release relating to RCM. Since the advent of GST, upon analysing the scope of supply under Section 7 of the CGST Act there were several diverse views which were expressed viz. whether any individual selling or purchasing any articles like jewellery, cars, flats etc" in their personal capacity, would be liable to be registered and pay GST under the law. This was clarified by the Government vide press release dated 13th July 2017, which dealt with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xempt. Therefore, the nature of income is an essential factor for ascertaining whether it will be taxable or exempt. If income loses its religious nature, it is definitely chargeable to GST. For example, if with regard to Ganesh utsav or other religious functions, charitable Institution rent out their space to agencies for advertisement hoardings, income, from such advertisement is chargeable to GST, as this will be considered as income from the advertisement services. Further, if donation for religious ceremony is received with specific instructions to advertise the name of a donor, such donation income will be subject to GST. But if donation for religious ceremony is received without such instructions, it may not be subject to GST. From the above clarification by the Department which is in the line of direction of Apex Court and various other Judicial Authorities, it is crystal clear that in order to bring any activity of charitable institution within the scope of tax it is necessary to look at what is the intention of earning income vis-å-vis the nature of income. 1.04 Undisputed status of applicant society as EDUCATIONAL INSTITUTION. The earlier law i.e. the BST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he verdict of judicial pronouncement, determination of disputed questions under earlier laws and matter decided in advance ruling under the present GST Law where it is held that though the institutions is charitable one but having regard to the nature of activity it is decided that those activities amounts to carrying on business & as such are liable to be registered in the earlier and present law. However on distinguishing the factual position of Applicant Institution with those one where the matter is decided against those Institution, it would be imperative to note that the status and activity of the Applicant Institution is altogether different and as such cannot be equated with those ratios and as such needed to Looked at differently as opined by the Supreme Court in case of Commissioner of Sales Tax vs Sai Publication Fund 4 SCC 7 (SC) = 2002 (3) TMI 45 - SUPREME COURT as under - We must add here that whether a particular person is a "dealer" & whether he carries on "business", are the matters to be decided on facts and circumstances of each case. In the light of the said direction the status of Applicant Institution is needed to be distinguished with those cases in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other object which might not be charitable but which is incidental or ancillary to the dominant object will also be considered as charitable. iii. Bombay High Court in case of Commissioner of Sales Tax vs. Cutchi Dasha Oswal Mahajan Udyog Committee (36 STC I) (Bom). = 1975 (1) TMI 74 - BOMBAY HIGH COURT In this case also, the Charitable Society was employing destitute women for preparing the eatables & such eatables were sold at market price. Hon. High Court has held that such activity' is for carrying out of main object of helping poor & needy women therefore even if sale is at profit & at normal rate still it will be incidental activity & not business. iv. Maharashtra State Sales Tax Tribunal in case of KEM Hospital Society V/s State of Maharashtra (1995) 11 MTJ 45 (MSTT) The society running a Medical Store/Drug Store in the hospital run by it was held not to be dealer as its activity was incidental to its main object which are neither commercial nor trade in nature. v. Maharashtra State Sales Tax Tribunal in case of Bombay Young Men's Christian Association v/s the State of Maharashtra 1998, 18 MTJ 437 Public Trust constructing international home providing Boarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oo with the joint participation of Central Government (50%) and State Government (25%) the applicant cannot be said to be carrying out "business" as defined in Section 2(17) of the CGST Act, 2017. ii. Further as discussed above if the main activity is determined as not business, in such a case, any other activity whether incidental or ancillary cannot be held to be a supply exigible to tax since such activity is neither in the course of nor in furtherance of business and rather it is a non-business activity undertaken for carrying out the main object of the institution and thus the income received in form of realisation fromdisposal of waste and unusable items, equipment, rental etc. [which is used for main object only which is charitable and religious purpose] cannot be considered separately and as such shall go with the income which does not fall within the meaning of business. In view of above factual and legally settled position by the judicial authorities the activity of the institution cannot be considered as business and as a result cannot be obliged to comply with the provisions of GST Act, Rules and Notifications. 1.08. Whether the applicant, a Charitable Society hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of GST Act falls within the category of Service provided by an "Educational Institution" to its students, faculty, staff in terms of Notfn 12/2017 C.T.-dt. 28/6/2017 at Sr. No 66 which is exempt supply. c. Further the nominal charges received from the patients (who is an essential clinical material for education laboratory) would fall within the category of "educational services: and even after further stretching it would fall within the meaning of Health care service by a clinical establishment in terms of Notification 12/2017 Central Tax -dt. 28/6/2017 at Sr. No 74 which is again an exempt supply. d. In the light of Supreme Court judgement in the case of Commissioner of Sales Tax vs. sai Publication Fund (2002) 4 SCC 7 (SC) CIT Vs. Gujarat Maritime Board (2007) 14 SCC 704 (SC), Commissioner of sales Tax Vs. Cutchi Dasha Oswal Mahajan Udyog Committee (36 STC l) (Bom). Maharashtra State Sales Tax Tribunal in case of KEM Hospital Society V/s State of Maharashtra and also in Bombay Young Men's Christian Association v/s the State of Maharashtra cited supra, the nominal receipts on account of Ancillary or support activities which are essential in order to achieve the main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be notified by the Government on the Recommendations of the Council Since the applicant institution does not fall within any of the above category and hence not liable to obtain registration u/s 24 of the CGST act. From the above it would be clear that the applicant institution is neither liable for registration u/s 22 (l) nor under the compulsory registration provision u/s 24 and thus in terms of exception provided by Section 23 and further clarification by the GST council the applicant institution is not liable for registration u/s 22 or u/s 24 of the CGST act and hence the Hon'ble Bench is requested to decide the questions accordingly in favour of the applicant institution not holding it as liable for registration under the GST Act. 2. Submission In a situation if above questions are answered against contention of the applicant institution then following further questions are being raised for the kind consideration by the Honourable bench i. Whether the fees & other charges collected from students & nominal charges received from patients (who is an essential clinical materials for education laboratory) would constitute as "outward supply" as defined in Section 2(83 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition at item no. (s) defines "clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases; b. As stated above in facts that in order to provide medical education it needs clinical laboratory with varied clinical material covering the different diseases which had to have essentially made available to the students and teacher for getting them educated with the wide spectrum having a focus on advanced mechanised diagnosis, management of drugs, and for that purpose the MCI has prescribed to maintain 750 Beds with reference to the academic courses being taught at MGIMS. Such teaching labs accommodating the stipulated teaching beds is known as "Kasturba Hospital" which if at a!! treated as rendering services still it falls within the meaning of clinical establishment as defined in clause 2 (s) and the nom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulation. For this purpose, Applicant Society have floated several schemes which inter alia includes Unparallel Health Insurance Scheme prescribing a premium of Re. l/- per year per resident of the concerned village & Tor urban population Rs. 500/- for entire year for a family comprising of five members which ensures the substantial concession to them during the course of treatment of illness through OPD or through admitting them in hospital. Such charges are in the nature of consideration for the services agreed to be made for treatment of illness & falls within the category of health care services qualifying for exemption under entry 9993. iv. Whether the nominal amount received for making space available for essential facilities needed by the students and staffs such as Banking, Parking, Refreshment which are support activities for attainment of main activities and further amount received on account of disposal of wastage would fall within the meaning of "supply" qualifying for exemption under the category of "educational/health care services." In this context it is submitted as under * As already mentioned above that the main activity of the applicant society is education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions fall within the meaning of definition dealer but the applicant society's fact are different since no activity of commercial nature is being carried on and as such the facts of the society cannot be correlated/equated with those cases where the decision is given against the society and therefore the facts of the society are distinguishable with those one. iv. It is beyond doubt that the applicant Society is not obliged to get registered since the services provided by it i.e. educational services which inter alia includes the services rendered to poor patient, are not covered by the definition of "Supply" as per charging Section 7 of the CGST Act, 2017 defines the scope of supply which is liable for GST. v. Even in alternative it is treated as Supply still all the receipts falling within the scope of "Exempt Supply" and thus in terms of Section 23 permitted to remain without having registration. Further there being no occasion to register compulsorily under section 24 the Institute is not required to be registered under the GST Law and thus not obliged to comply with the provisions. PRAYER: a. In view of the facts and circumstances & also uncontroversial status of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nil (11) Notification no, 09/2017-lntegrated tax (rate) dated 28.06.2014 at Sr. No. 77. Sr. No Chapter, No. Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 77 Heading 9993 Services by Way of (a) health care services by a clinical establishment, an authorized medical practitioner or paramedics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. Nil Nil (iii) Circular No. 32/6/18-GST dated 12.02.2018 at sr. No. 5 S.No. Issue Clarification 5 Is GST leviable in following cases: (1) Hospitals hire senior doctors/ consultants technicians independently without any contract of such persons with the patient; and pay them consultancy charges, without there being any employer employee relationship. Will such refers]. (1) Services provided by consultancy charges be exempt from GST? Will revenue take a stand that they are providing services to hospitals and not to patients and hence must pay GST? (2) Retention money: Hospitals charge the patients, say; Rs. 10000/- and pay to the consultants/ technicians only Rs. 7500/- and keep the bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is clarified that the food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable but other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. II. Whether, the amount received for renting of space for banking, parking & refreshment & amount received on account of disposal of wastes would fall within the meaning of supply. Comments:- As per the above mentioned notifications and circulars it is noticed that the services rendered by an educational institution to its students, faculty and staff etc. and the health care services provided by a clinical establishment, an authorised medical practitioner or para-medics are exempted from payment of GST. While services provided by an educational Institution are out of the GST ambit, the same is not the case with services provided to an educational institution. The GST exemption on services provided to an educational institution is available only to schools (from pre-school up to higher secondary school or its equivalent). Hence, the 'input' or supply of services such as transportation, catering, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing persons shall not be liable to registration, namely:-- (a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tar or wholly exempt from tar under this Act or under the IGST Act; (b) an agriculturist; to the extent of supply of produce out of cultivation of land. (2) The Government may, on the recommendations of the Council, by notification, specify the category' of persons who may be exempted from obtaining registration under this Act. In view of above provisions it is seen that the taxpayers who are liable to pay the tax shall be liable to be registered under this Act. In the instant case it appears that the services not covered under the purview of educational services or health care services are taxable. E.g. food services [i.e, other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable], the amount received for renting of space for banking, parking and refreshment and amount received on account of disposal of wastes would fall within the meaning of supply. Therefore, they are required to be registered under this Act. 04. HEARING Preliminary hearing in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 314 - BOMBAY HIGH COURT as well as in the case of B.M. Vidhwans V/s Nagpur University (S.C.A. No. 1753 of 1977 decided on 16/18th July, 1980) observed (Para-II) that - "Thus, we see no difficulty whatsoever in holding that Respondent no.12, i.e., (MGIMS) is a "State" within the meaning of Article 12." Vide para 12 of the said Judgment, their lordship observed that "One of the important tests to be applied is a functional test. Imparting higher medical education is the function of the Institute. This education is essentially concerned with national health. Articles 41 and 47 in Chapter IV deal with education and public health. They embody some of our national goals for fulfilling which public funds are being utilised by the Government. This education is regulated by several enactments with the sole object of achieving best standards. Those obtaining degree will be entitled to deal with human life at its crucial stage. Thus, the Institute in one sense is performing a statutory duty and is therefore also an instrumentally of "State". From the above it is very clear that MGIMS has been considered a State, within the meaning of Article 12, by the Hon'ble Court. It is not that Kas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of 'supply' every supplier needs to get registered. However, as per the scheme of the Act, not every supplier is required to get registered. Only those suppliers, whose aggregate turnover of all supplies exceeds the threshold limit as prescribed under Section 22 (including exempted and taxable supplies). Thus to be registered a person satisfies two conditions namely, supply of taxable goods or services or both and aggregate turnover in a financial year exceeds threshold limit. The expression 'taxable supply' has been defined under the Act, as below: Section 2(108): "taxable supply " means a supply of goods or services or both which is leviable to tax under this Act; Thus a person who is engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax is not liable for registration under Section 22 of the GST Act. Thus even without referring to section 23 of the Act, we can say that a person, whose aggregate turnover of all supplies is other than taxable supply, is not liable for registration. Section 23, provide exemption to certain category/ class of person from obtaining registration under the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other charges and recoupment charges appear to be collected by MGIMS/Kasturba Hospital. Since the supply in this case is not done by the applicant, as per Section 95 of the CGST Act, they cannot apply for advance ruling and the same is outside the purview of this authority. Question No. (iii)(c) :- Whether the nominal charges received from patients (who is an essential clinical materials for education laboratory) towards an "Unparallel Health Insurance Scheme" to retain their flow at one end for the purpose of imparting medical education as a result to provide them the benefit of concessional rates for investigations and treatment at other end would fall within the meaning of "supply " eligible for exemption under the category of "educational and / or health care services." It is not clear from the submissions as to who is receiving such nominal charges from patients. From the submissions made by the applicant we find that such charges appear to be collected by MGIMS/Kasturba Hospital and since the supply in this case is not done by the applicant, as per Section 95 of the CGST Act, they cannot apply for advance ruling and the said matter is outside the purview of this authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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