TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 355
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....ntation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as an Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. Access Healthcare Services Private Limited, Kochar Technology Park, SP-31A, Ambattur Industrial Estate, Chennai-600058 (hereinafter called as the applicant) are registered under the GST Act with GSTIN: 33AAJCA1885HIZN. The applicant is a company incorporated in India under the Indian Companies Act, having its registered office at Chennai, Tamil Nadu and engaged in the business of providing Information technology (IT) and Information technology Enabled Services (ITeS) for health sector. The company offers business process outsourcing, applications services, and robotic process automation tools to healthcare providers, payers, and related service providers. 2....
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....t of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person." 5.2. The applicant stated that in the light of above mentioned provisions, it shall be noticed that in order to 'avail ITC on any inward supply', the supply should be used in the course or furtherance of business. This inference finds support in the FAQs on GST published by the CBIC dated 31 March 2017. Relevant question and answer thereto is reproduced below: "Q 4. is credit of all input tax charged on supply of goods or services allowed under Ans. A registered person is entitled to take credit of input tax charged on supply of goods or services or both to him which are used or intended to be used in the course or furtherance of business, subject to other conditions and restrictions." 5.3. The applicant further stated that firstly from the phrase "used or intended to be used", it can be fairly inferred that the entitlement to ITC is dependent on usage or even mere intention of usage of the procured supplies for application in th....
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....ered under this Act, or such other tax paying documents as may be prescribed; (aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37; (b) he has received the goods or services or both- Explanation.-For the purposes of this clause, it Shall be deemed that the registered person has received the goods or, as the case may be, services (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person. (ba) the details of input tax credit in respect of the said supply communicated to such registered person under section 88 has not been restricted;] (c) subject to the provisions of section 41, the tax charged in respect of such s....
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.... used- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (ii) membership of a club, health and fitness centre; (iii) rent-a-cab, life insurance and health insurance except where (A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or (B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and (iv) Travel benefits extended to employees on vacation such as leave or home travel concession;.." 5.8. The applicant Stated that the Input Tax Credit on the transaction under question does not fall under any of the above-mentioned categories, and hence is not blocked by Section 17 (5). Judicial precedents on credit eligibility under erstwhile indirect tax regime 5.9. The applicant submitted that considering a culmination of the erstwhile indirect tax legislations and because the CENVAT Credit ....
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....itted that the Indian Staffing Federation is the apex body representing the Staffing industry / Private Employment Services that is authorised to discuss with government agencies and other trade bodies on behalf of the staffing industry/ private employment services. The JSF constitute of several professional organized staffing companies, including the proposed vendor(s) of the Applicant. 5.15. That as cited in The Economic Times dated on 01-June-2018, in the pre-GST regime, the unorganized contract staffing sector had a pricing advantage as they did not pay service tax. However, Post-GST implementation the availability of input tax credit (ITC) has prompted companies to increase their hiring of such temporary staffing services and is fundamentally restructuring the entire staffing business in India. Rituparna Chakraborty, the President of the Indian Staffing Federation, also remarked many employers prefer contractual engagements and the benefit of input credit has helped organized staffing companies to be more competitive, Previously one could not claim anything on the service tax charged but after GST one can set off the entire amount paid on outsourced staffing cost against the ....
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....members requested them to submit input and output services rendered / to be rendered by the applicant, for which it was stated that they would submit at the earliest. 8. Additional Submission The applicant vide letter dated 20.02.2024 made additional submissions against the advance ruling application. They submitted that with regard to certain documents sought for perusal by the members of the advance ruling during the personal hearing on 09.01.2024 they the following submissions: 8.1. Clarification on the outward supplies provided by Access Healthcare using the human resources of Quess Corp Limited The applicant submitted that the Company is in the business of Revenue Cycle Management, which helps hospitals, physicians and healthcare providers. Therefore, the employees of Quess Corp Limited provide the below services: a. Assistance in processing transactions like Charge Entry, Payment Posting, Demo Verification. b. Medical coding c. Follow up on receivables d. Denial management 8.2 The applicant further submitted the summary of process of hiring and initial training of employees by the Contract firm as follows: * The company usually hires around 500 employees per mo....
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....ntative Details: Vivin Anto Company Representative Details: 2. OBLIGATIONS OF THE PARTIES TO THE AGREEMENT a. Recruitment Client will provide clear specifications for the nature of the services required from the Company, in order to help source and recruit the Associates. Company shall ensure that the Associates have cleared the Company's internal selection processes and meet Client's requirements as specified under the respective SOW. b. Placement Client will intimate the locations where the Services of the Associates would be needed. Client will send a written recommendation to the Company if it wishes to relocate any of the Associates. c. Replacement of Separated Associate(s) In the event any Associate, deputed by the Company ceases to perform Services as specified in the Associate request form of his/her own volition for the Client, for no fault of the Client, within forty-five (45) days of deputation, the Company shall forthwith arrange for replacement of the Associate to the Client and the Client shall not have to incur additional sourcing fees that it would have paid had the original Associate continued to perform the required services. d. Service....
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....License/ permit verifications and fingerprinting for certain positions. Client agrees to pay the Company all related costs associated with providing such Services plus an administrative fee. I. Reports Company agrees to provide the reports pertaining to the Associates, as mutually agreed between the Parties from time to time. m. Additional Services Company may provide additional services beyond its express obligations under this Agreement at the Client's request. The charges for these services will be at the rate as mutually agreed upon in advance by the Client and the Company. The Client will be responsible for the reimbursement of business expenses incurred by the Company in connection with any additional services requested by the Client. 3. OBLIGATIONS OF THE COMPANY a. The Company will devise suitable selection procedures as per the Associate revulsion form from the Client and ensure that Associates offered have the approval of the Client. b. The Company may keep its designated personnel at its centres briefed on the service requirements with Associates / Client and ensure responsive service. c. The Company will ensure that Associate's salaries / reimbur....
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....fied resources is a key to the operations of the business of the applicant. They further state that the job market is volatile and it is found extremely onerous to identify, train, recruit and retain suitable resources. Therefore, the applicant is considering hiring the service of professional contract-staffing firm(s) to avail certain human resource management and related services. Such firm(s) ('Staffing Firm') would issue tax invoices on the applicant towards the services rendered, along with applicable Goods and Service Tax. The services rendered fall under SAC 998513 - Contract Staffing Services, leviable to GST at 18% (clause 23 (iii) of Notification No. 08/2017-integrated Tax (Rate) dated 28 June 2017). The applicant has sought for the ruling on the following question: Whether Input Tax Credit (ITC) is eligible on Contract Staffing Services received by the Applicant? 10.3 With regard to the issue raised by the applicant in the advance ruling application filed by them, we find that the availment of ITC is governed by the provisions of Section 16 & 17 of the CGST Act, 2017. Whereas Section 16 of the CGST Act, 2017 provides for the Eligibility and conditions for taki....
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....d machinery, whereas the supplies to be received by the applicant are contract staffing services. 10.6, Further we agree with the applicants' submission that the GST paid by the applicant on availing contract staffing services is not a blocked credit as per section 17 (5) (b) (iii) as below: (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18 input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:- .......... (ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): ......... (b) [the following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used fo....