Restaurant or canteen

[Ravikumar Doddi]

Applicant running a canteen in a Hospital, Hospital provides power supply by a sub meter to the canteen, which bills are coming ₹ 1 lak and above per month, hospital collecting 18% GST, is it correct sir, if any exemption please provide Notification/circular and HSN/SAC Code on which they are collecting 18%

AI Summary

Hospital Canteen Operator Liable for 18% GST on Electricity via Sub-Meter; Exemption Not Applicable Under Notification No. 2/17-CT(RATE) An individual operating a canteen in a hospital queried about the correctness of an 18% GST charge on electricity supplied via a sub-meter by the hospital. Two respondents clarified that the hospital's charge is appropriate under HSN Code 9969, as per Notification No. 11/17-Central Tax (Rate). They explained that the hospital acts as a pure agent, collecting and remitting GST to the State Electricity Board. The exemption under Notification No. 2/17-CT(RATE) is not applicable. The possibility of availing exemption through the Pure Agency Concept was discussed, requiring specific conditions to be met.