9911796707
TMI Blog2019 (8) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... upply of port services and incidental supply of goods like disposal of discarded assets. They are Registered under GST with GSTIN 33AAALC0025B1Z9. They have preferred an Applications seeking Advance Ruling on the following questions : 1. Whether the applicant is entitled to take credit of input tax charged on the following inward supply of goods or services or both which are used or intended to be used in the course or furtherance of the business of the applicant i. Medical and diagnostic equipment ii. Medical apparatus & instruments, medical consumables & disposable items and other machinery installed in the in house hospital iii. Spares for medical and diagnostic equipment, medical apparatus & instruments and other machinery installed in the in-house hospital iv. Repairing Services of medical and diagnostic equipment, medical apparatus & instruments and other machinery installed in the inhouse hospital. Subject to fulfillment of (1) such conditions and restrictions as may be prescribed in CGST Rules 2017 particularly in rules 36 to 45 (both inclusive), (2) such conditions stipulated in subsections(2) to(4) of section 16, (3) in the manner specified in section 49 and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credits under Section 17(5) of the GST Acts 4. The Applicant was granted personal hearing on 24.09.2018 in respect of application. The applicant represented through authorized representative. The submissions during the hearing are as under: The learned representative stated that medicines are being given to the employees free of cost and the medicinal equipments are used to render health benefits to the employees which are part of the package to the employee. They stated that they will submit a sample contract with the employee. They claimed these are used for the furtherance of business of the applicant. They stated that they will submit all the documents in two weeks and also requested for further hearing. 4.1 The applicant through their authorized representative furnished the following documents on 26.10.2018. The details of the documents furnished ARA wise are as under: Invoice pertaining to AMC for Medical Equipment (VI: 2015-16:20 dated 10.10.2015); AMC for Ventilators (AMC 302 dated 22.09.2010); AMC for Monitor (AMC 303 dated 22.09.2010); R & M for hospital equipment (11/012 dated 08.10.2009); Spares for medical equipment (ITB5011 & ITB 5012 both dated 02.06.2010) F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to production of all original case records in emergency cases in case of inpatients. Employees can recommend outsider as patients but the payment for treatments is deducted from salary of the employee who recommended. In case patients are critical can be referred to empanelled hospitals. In such a case, the bills are received from the empanelled hospital and paid by the applicant after due verification. 6. The remarks of the State Jurisdictional Officer on the questions raised by the applicant in the ARA application are detailed below: Providing medical services by using equipments to their employees and pensioners are not part of their business activity and such provision is being done only under service rules. The applicant has also stated that the medical services were provided without any consideration i.e. free of service. In view of the above facts, the applicant is not eligible to claim Input Tax Credit on inward purchases of medicines to be supplied to their employees and pensioners for the reason that this activity is not part and parcel of their main business activity and supply of medicines without consideration amount to free supply and hence the applicant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re referred to as under: Section 16(1) to (4) of CGST Act 2017 & TNGST Act 2017 provides the "Eligibility and conditions for taking Input tax credit" of is as follows: 16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any 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 and the said amount shall be credited to the electronic credit ledger of such person. Section 17 (5) of the Act, which blocks/ restricts certain credits, states as under: (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely: ................................... (g) Goods or services or both used for personal consumption; 8.2 In the instant case, the applicant has their own in -house hospital for use by the employees, retirees and their dependents. This is a free center where all the services and medicines are provided free to the employees. No consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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