TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 876
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....2017, KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a private limited company engaged in providing health care services categorizing them as In-patient (IP) and Out-patient (OP) services. The Company is also engaged in supply of medicines (pharmacy) to in-patients and out-patients. It also operates Restaurant / Canteen services in its premises which is used for supplying food and other eatable items to its patients and their attendants. 3. The question on which advance ruling is sought is as follows: "Whether the activities performed by the employees at the corporate office in the course of or in....
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....ed by the registered person in the state of Karnataka and subsequently, registered person in Karnataka is discharging IGST on the expenses proportionately attributable to the other units located outside the State of Karnataka treating the same as taxable supplies in this regard. c. The applicant provides an example on how the services are apportioned and the same reads as under * If the Company has received rental services amount to Rs. 1,00,000 plus GST of Rs. 18,000, which are towards management office. The Company in Bangalore would avail the input tax credit to the extent of Rs. 18,000-00 and subsequently the Company, Bangalore would raise invoices on other units for an amount determined on the basis of turnover of respective unit t....
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....when made in the course or furtherance of business" shall be treated as a supply even if it is made without consideration. He stated, however, as per Entry 1 of Schedule III of the CGST Act, "Services by an employee to the employer in the course of or in relation to his employment" shall not be treated as a supply of services. 5. The applicant explained that the activities carried out by employees from its India Management Office (IMO) for accounting and other administrative functions with respect to other units amount to supply of services between distinct persons without consideration as per Entry 1 of Schedule I. However, the same shall not be treated as supply of services by virtue of specific relaxation provided in Entry 1 of Schedule....
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....tancy availed at the India Management Office (IMO) but are used for the entity as a whole and hence, the same are attributable to all the registered persons located in other states as well. Allocation of such expenses to other registered units by IMO is only for the purpose of determining the profit of each cost centre i.e. registered unit. Whether such allocation of expenditure to other registered units tantamount to supply of services between related or distinct persons as per Entry 2 to Schedule I to CGST Act and accordingly liable to tax is the question asked. 8. FINDINGS & DISCUSSION: The contention of the applicant is examined. 8.1 Regarding the applicability of entry No.2 of Schedule I to the activities of accounts and management ....
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..... By implication, any supply of goods and services from IMO to the separately registered units would amount to supply of goods and services, even if made without consideration. 8.3 Clause (c) of sub-section (1) of Section 7 which is related to the scope of supply clearly states as under: "(1) For the purposes of this Act, the expression "supply" includes-- (a) 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. . . (b) . . . (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and (d) . . ." Hence any activities m....