Page 196 - GSTL_23rd July 2020_Vol 38_Part 4

562 GST LAW TIMES [ Vol. 38
the employer provided such health services
are obligatory for the employer to provide to
its employees under any law for the time be-
ing in force, which, prior to this amendment
act, was not available to any registered per-
son under Section 17(5)(b) of the CGST Act,
2017. In view of this deliberation, the Appel-
lant are rightfully entitled to avail the ITC in
respect of all the inputs like medicines,
equipment, furniture, etc. consumed in the
hospitals and input services like maintenance
and upkeep of the hospitals, etc., to provide
the health services to its employees and their
dependents as per the terms of the Ordnance
Factory Medical Regulation.
(d) Expenditure related to Findings in Q. 2(d) :-
maintenance and up- As the Appellant is charging rent from the
keep of guest houses guests availing the guest house facilities,
maintained by organi- which may be considered as exempt supply
sation. in terms of Sr. No. 6 of the Notification No.
12/2017-Central Tax (Rate), dated 28-6-2017
as the Appellant, as discussed above, has
been held to be the Central Government.
Therefore, No ITC is available against the
said exempt supply in terms of the provision
of Section 17(2) of the CGST Act, 2017.
(e) Expenditure related to Findings in Q. 2(e) :-
purchase of LPG cylin- Since, the Appellant’s activities of the supply
ders used within indus- of Food and beverages at the industrial can-
trial canteen. teen inside the factory premises would attract
NIL rate of GST, that is the said supply was
held to be exempt supply in terms of Sr. No. 6
of the Notification No. 12/2017-Central Tax
(Rate), dated 28-6-2017. Since the subject sup-
ply has been held to be exempt supply by the
Appellant, the ITC in respect of the LPG cyl-
inders used in the factory canteen of the Ap-
pellant will not be available in terms of Sec-
tion 17(2) of the CGST Act, 2017.
Question : (6) Whether pro- Findings in Q. 6 :-
portionate Input Tax Credit has On perusal of the submissions and documen-
to be reversed in cases where tary evidences put forth by the Appellant, it is
lesser payment is made to the amply revealed that deduction of Liquidation
supplier due to deduction on Damages from the dues of the suppliers on
account of liquidated damages account of delayed delivery of goods or ser-
from supplier’s dues. vices has no bearing, whatsoever, on the ac-
GST LAW TIMES  23rd July 2020  196