Page 168 - GSTL_7th May 2020_Vol 36_Part 1

126 GST LAW TIMES [ Vol. 36
Question 2 : Where company is selling water in containers whether
selling of container and water is composite supply?
Answer : Answered in Affirmative.

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2020 (36) G.S.T.L. 126 (A.A.R. - GST - Guj.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
S/Shri G.C. Jain and R.B. Mankodi, Members
IN RE : KANDLA PORT TRUST

Advance Ruling No. GUJ/GAAR/R/13/2019, dated 22-8-2019 in Application
No. Advance Ruling/SGST & CGST/2018/AR/24
Input Tax Credit (ITC) - Expenses incurred by applicant for providing
common facilities to their employees within the residential colony where
quarter given on nominal fees, i.e., Hospitals, Sports Complex, Garden, Guest
House for official visitors and school for employee’s children but the same is
not related to furtherance of their business/output service, i.e., port service -
Applicant not entitled to take credit of input tax charged in respect of these
expenses - Sections 16(1) and 17(1) of Central Goods and Services Tax Act,
2017. [paras 4.3, 5]
Ruling in favour of department
REPRESENTED BY : Shri Hardik V. Thacker, CA, for the Assessee.
[Order]. - Advance Ruling No. GUJ/GAAR/R/13/2019 (in Application
No. Advance Ruling/SGST & CGST/2018/AR/24).
2. M/s. Kandla Port Trust (Deendayal Port Trust), CDC Section, Sewa
Sadan-III, Kandla, Kachchh (hereinafter referred to as the “Applicant” for the
sake of brevity), is engaged in port service to various clients. The applicant has
residential colony for employees of the port. Quarters have been given to their
employees on nominal fees and various other common facility centers like Hos-
pital, Sports Complex, Garden, Guest House for official visitors and School for
employee’s children, are available within the colony. Further, the applicant is
purchasing medicines for employees as prescribed by their doctors from outside
on contractual basis. They also purchase movable medical equipment at hospital.
They are also paying for AMC for repair and maintenance of residential colony,
hospitals and school (other than new constructions). They are also providing tel-
ephone & mobile facility at residence of officers and at hospitals. They are also
paying for caretaking/housekeeping services at Guest House.
3. The Applicant, vide Annexure-I of their application dated 23-3-2018,
has sought for advance ruling for eligibility of Input Tax Credit (ITC) with re-
spect of below mentioned specific expenses occurred by the applicant :-
(a) Purchase of medicines for employees as prescribed by their doctor
from outside on contractual basis.
(b) Purchase of movable medical equipment at hospital.

GST LAW TIMES  7th May 2020  168