TaxTMI 
TaxTMI 
2024 (11) TMI 1328
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....ations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression "GST Act" would mean the CGST Act and the WBGST Act both. 1.2 The applicant is a service provider and engaged in providing catering services to the hospital canteen. The applicant supplies food for patient diet made to the Central Hospital, South Eastern Railway, Garden Reach Road, Kolkata-700043. 1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under seeking an advance ruling in respect of following questions: (i) Whether the supply of food to all the inpatients would be considered as exempted supply under Notifica....
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....erned by as per GEM terms & Condition unless otherwise expressly stipulated elsewhere in this contract. iii. Income Tax @ 2% of the gross amount as applicable will be deducted from all bills of the Contractor in accordance with relevant section of the current Income Tax Act. No payments will be made to the Contractor unless he submits his latest Income Tax clearance Certificate, periodically. iv. Payment to the Contractor is to be made through NEFT System (Electronic Fund Transfer System)." 2.3 Accordingly, the applicant issues invoices to the Central Hospital, South Eastern Railway, Garden Reach Road, Kolkata 700043 without charging any WBGST/CGST considering that the supply of services of diet to the indoor patient as per the diet chart provided by the medical officers are falling under the composite supply of healthcare services and thus qualifies to be an exempted supply in terms of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 along with clarification given in the Circular No. 32/06/2018.GST dated 12.02.2018. 2.4 The applicant submits that the issue regarding taxability of certain services were discussed in the 25th GST Council meeting....
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....4.2 The applicant submits that kitchen and dietary service related contract was placed by the Central Hospital (South Eastern Railway), Garden Reach, Kolkata to the applicant to undertake preparation, processing and cooking of meals, special diets and feeds as per specification and deliver to inpatients as per time specified by the Hospital. It is seen from the contract that the applicant is awarded with a contract for supplying full regular diet for patients of general ward which includes morning tea, snacks, breakfast, lunch, evening tea and dinner. According to the contract, hospital provides a proper and suitable area for running the kitchen and the applicant is responsible for purchase, procurement and appropriate storage of raw material. The applicant is responsible for arranging catering appliances like Industrial cooking gas cylinders, gas oven, OTG, refrigerator, mixer grinder, toaster, sandwich maker, juicer, electric kettle, Induction cooker, dish washer, storage cabinet etc.. 4.3 The applicant argues that services of providing diet to inpatients of the hospital is exempted vide serial no 74 of the Notification No 12/2017 Central Tax (Rate) dated 28.06.2017. To delve ....
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....of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases; • "authorised medical practitioner" means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognised by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force; 4.5 Admittedly, the Central Hospital (South Eastern Railway), Garden Reach, Kolkata is a clinical establishment and it provides health care services to both in-patients as well as out-patients. In the case of an in-patient, i.e., the patient who gets admitted to the hospital in order to avail health care services, there do not have any choice from the end of the patient for the prescribed diet which is strictly administered by the doctors or the nutritionists of the hospital. Such supply of food provided by the hospital, as a part of composite supply of health care services, is not taxable separately as it has been clarified in the Circular No. 32/06/2018 G....
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....e available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied; In the instant case, the applicant has entered into the agreement with the Central Hospital, South Eastern Railway for provide catering services by running the in-house kitchen of the hospital and for which the Central Hospital is liable to pay the consideration to the applicant. So, there can be no dispute that the applicant is supplying the services to the Central Hospital who is engaged in providing health care services to the patients. So, it is the Central Hospital and not the applicant who provides health care services. 4.10 In this context, we would also like to refer to the Circular No. 32/06/2018.GST dated 12.02.2018 where the issue under serial number 5 itself clarifies that "Health care services provided by the clinical....
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....ical establishment. 4.13 The applicant raises the query whether supply of food to all in-patients would be considered as exempted under exemption notification [supra] read with clause (a) of section 8 of GST Act. We have already dealt with the issue and expressed our view that the applicant is not in a position to deliver health care service as a clinical establishment. Exploring definition of "composite supply" can bring clarity further: Clause (30) of section 2 of the GST Act provides definition of "Composite supply" as follows: "(30) composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or a combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration.- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;" 4.14 Composite supply thus is constituted with two or more taxable supplies which are naturally bundled and s....