GST Exemption Denied for Establishment Charges on Drug and Equipment Procurement Services, Says AAR.

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Full Text of the Document

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....Benefit of exemption from GST on establishment charges received from the State Government - the applicant undertakes the procurement of drugs, surgical equipment, etc, and raises an invoice in the name of MD, APMSIDC. In addition to the above, the charges are received from the State Government as 'establishment charges' for handling and monitoring the activity. By all means, the principal activity is the procurement of goods and the ancillary activity is the service component of handling and monitoring of the supply, for which establishment charges are received as 2% as mentioned by the applicant. - Benefit of exemption from GST not available - AAR....