Authority for Advance Ruling (AAR)

Whether the Supply made by M/s. INI Studio Pvt. Ltd. would qualify for Exemption under Entry No. 3 of the Notification No. 12 / 2017 – CT as a “Service” in relation to any functions entrusted to a municipality under article 243W of the Constitution as a “Pure Service” having no element of goods so as to construe it as “Works Contract’ as defined under Section 2 (119) of the Central Goods and Services Act, 2017 (CGST Act, 2017)”?

Question Not Mentioned in the Application

Rejected

Double taxation on freight portion of imported goods-

Goods imported and IGST levied on CIF Value (which includes freight)  Plus Basic Custom duty plus Social Welfare Cess.

IGST levied again on the freight component (Ocean Freight) on reverse charge basis.

Question Not Mentioned in the Application

Classification of goods and applicable tax rate on that.

Applicability of a notification issued under the provision of the Act.

Question Not Mentioned in the Application

Whether the applicant can purchase the E- Scrap under RCM and pay taxed at 5% being Trader.

Question 1: Whether the supply of medicines, surgical items, implants, consumables and other allied services & items provided by the hospital through their hospital in house pharmacy, as well as food, room on rent, other services to the in-patients is part of composite supply of health care treatment; and hence not taxable under CGST/SGST?

Question 2 : Whether the supply of Occupational Health Check-up service (OHC) by the hospital i.e. nursing staff, Doctors, Paramedical staff on hospital’s payroll working in different corporate for providing health check-up service, ambulance facility, and allied medical services to their employees and also the camps conducted for health check-up outside the hospitals, to be treated as Health Care service and hence not taxable under CGST/SGST?

Q-1 What should be the Correct Classification  with respect to the nature of “Supply “ i.e Whether the Questioned Supply tantamount to “Supply of Goods”   or “Supply of services” on the basis of the facts  of the Whole Activity as mentioned above and Supported by the Documents enclosed / discussed here under?

Ans- The nature of Supply is Supply of Goods .

Q-2 Whether Circular No.126/45\2019-GST dated 22\11\2019 shall at all apply in the instant case if answer to Query (a) is “Supply of Service” as job Work service?

Ans- Not Answered as the nature of Supply is Supply of Goods.

Q-3 What should be the Correct HSN/SAC code Application to the said Supply?

Ans- HSN 7309

Q-4 What is Applicable Rate of Tax of GST based on Answers of Queries mentioned in Above Queries?

Ans- The Rate of GST is 18% (9% CGST & & 9% SGST or 18% IGST).