TMI Blog2020 (6) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... edical store. Medicine is goods as per subsection 52 of Section 2 of the CGST Act, 2017. Medicine is a taxable supply as per sub section 108 of section 2 of CGST Act, 2017 and GST is leviable on medicine as per Chapter-30 of HSN code. Therefore, sale of medicine by the applicant is a taxable supply of goods. Applicant is providing medicines from its medical store at lower rate so price paid by the customers is consideration for the applicant as defined in sub-section 31 of Section 2 of the CGST Act, 2017 - the activity of supply of goods by the applicant does not fall under the list appearing in Schedule-III of the CGST Act, 2017. The applicant is making taxable supply from its medical store, so as and when aggregate turnover (here medicine) of applicant exceeds threshold limit as specified in sub-section(1) of Section 22 of the CGST Act, 2017, the applicant has to obtain registration under the relevant provisions of the CGST Act, 2017. - GUJ/GAAR/R/2020/08 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/39) - - - Dated:- 19-5-2020 - SANJAY SAXENA AND MOHIT AGRAWAL, MEMBER Present for the applicant : Shri S. J. Vyas, Advocate The applicant vide their applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) Any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) Any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) Supply or acquisition of goods including capital goods and services 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) Any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. 3. The applicant has stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by their representative during the course of personal hearing. As per their submission, the applicant area charitable trust and are running a medical store where medicines are given at a lower rate and the motive of the trust is not profit. They have quoted a judgement of the Hon ble Gujarat High Court in the Tax Appeal No.704/2013 in the case of Gujarat v/s Saurashtra Kidney Research Institute = 2016 (9) TMI 1223 - GUJARAT HIGH COURT which was similar to their case wherein it was observed that the activity of purchasing, selling and supplying medicines was to achieve the object of the Trust and was not a business activity; that therefore, the sale of medicines by the said Charitable Trust would not attract GST and therefore, the question of registration under the Act does not arise and that under the Gujarat GST Act, the position is comparable and therefore, no liability would arise. 5. We have gone through the aforementioned judgement quoted by the applicant which deals with a similar matter. We find that the issue pertains to registration of dealer under Section-2(10) of the Gujarat Sales Act. In the said judgement, the Hon ble High Court of Gujarat has referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable supplies of goods or services or both from any of the special category states, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. (b) sub section 108 of section 2 of CGST Act, 2017 which defines taxable supply and reads as under: A supply of goods or services or both which is leviable to tax under this Act; (c) clause (a) of sub section (1) of section 7 of CGST Act,2017 which defines Scope of supply and reads as under: All forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (d) Sub section 52 of section 2 of CGST Act, 2017 defines Goods and reads as under: goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply; (e) sub section 31 of Section 2 of CGST Act, 2017 which defines Consideration and reads as under: (a) A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 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) Any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. 7. The applicant is a charitable trust which appears under the definition of person and falls at clause(m) of sub-section 84 of Section 2 of the CGST Act, 2017.As per definition, a charitable trust is a person as per clause (m) of sub section 84 of section 2 of CGST Act, 2017. The applicant is providing medicines from its medical store at lower rate, so activity of dealer is to provide medicines with less pecuniary benefit. As per the definition of business any trade, commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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