Page 196 - GSTL_3rd September 2020_Vol 40_Part 1

130 GST LAW TIMES [ Vol. 40
2020 (40) G.S.T.L. 130 (A.A.R. - GST - Telangana)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
TELANGANA
S/Shri J. Laxminarayana, Member (State Tax) and B. Raghu Kiran, Member
(Central Tax)
IN RE : NAVNEETH KUMAR TALLA
Order No. TSAAR/07/2020, dated 29-6-2020 in A.R.Com/22/2018
Food supply to Hospitals/Clinical establishments - Exemption admis-
sibility - In terms of Entry 74 of Notification No. 12/2017-C.T. (Rate), exemp-
tion is available only when clinical establishment itself provides this service
(supply of food) as a part of Health Care services to in-patients - Since appli-
cant is a person other than clinical establishment and food is being supplied
under contractual obligation, exemption ibid not admissible. [paras 10, 11, 12]
Foods supply to Hospitals/Clinical Establishments - Outdoor Catering
- Rate of GST - Activity of applicant is akin to outdoor catering inasmuch as he
prepares food using his own labour at hospital’s premises - It is hospital who
makes payment to applicant and not consumers - It is not an independent Can-
teen - Accordingly, applicant’s activity fully covered under S. No. 7(v) of Noti-
fication No. 11/2017-C.T. (Rate), dated 28-6-2017 as it stood up to 26-7-2018 at-
tracting GST @ 18% (9% CGST and 9% SGST) - However, w.e.f. 27-7-2018, in
view of amendments made in Notification ibid, rate of GST would be 5%
(2.5% CGST and 2.5% SGST) provided ITC in respect of goods and services
used in outward supply has not been availed. [paras 13, 14, 15, 16, 17, 18, 19, 20,
21, 22, 23]
Ruling in favour of department
DEPARTMENTAL CLARIFICATION CITED
C.B.I. & C. Circular No. 32/06/2018-GST, dated 12-2-2018 .................................................. [Paras 8, 10, 12]
[Order]. - M/s. Navneeth Kumar Talla, H. No No. 23/6/17/A, Bela Sha-
hali Banda, Hyderabad, (GSTIN No. 36AAMPT4171B1ZN) has filed an applica-
tion in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 and Read
with Rule 103 of CGST/TGST Rules, seeking Advance Ruling on the issues
raised in their application.
2. The applicant submitted the application in FORM GST ARA-01 and
Statement containing the applicant’s interpretation of law & relevant facts and
requested for advance ruling on classification of services rendered by them and
rate of tax applicable. They have submitted a copy of Challan evidencing pay-
ment of application fee of Rs. 10,000/-.
3. A personal hearing was held in this case and the assessee have ap-
peared for personal hearing on 9-11-2018. However due to administrative exi-
gencies, the Orders were not released. Further Government Go. Rt. No. 312, Rev-
enue (CT.II) Department, dated 5-11-2019 have appointed Sri B. Raghu Kiran,
IRS, Joint Commissioner (Central Tax) as member in place of Sri V. Srinivas, IRS,
Additional Commissioner (Central Tax). Hence another notice was issued to the
applicant to appear for Personnel Hearing on 4-12-2019. The Authorised Repre-
sentative Sri. G. Ashok Kumar appeared and explained their case as under :
(a) The Authorised Representative has submitted that, the applicant/
Assessee is doing the following nature of business :
GST LAW TIMES  3rd September 2020  212