Page 198 - GSTL_3rd September 2020_Vol 40_Part 1

132 GST LAW TIMES [ Vol. 40
Sl. Issue Clarification
No.
5 (3) Food supplied to the patients : Health (3) Food supplied to the
care services provided by the clinical in-patients as advised
establishments will include food sup- by the doctor/
plied to the patients; but such food nutritionists is a part
may be prepared by the canteens run of composite supply
by the hospitals or may be outsourced of heath care and not
by the Hospitals form outdoor caterers. separately taxable.
When outsourced, there should be no Other supplies of
ambiguity that the supplier shall food by a hospital to
charge tax as applicable and hospital patients (not admit-
will get no ITC. If hospitals have their ted) or their attend-
own canteens and prepare their own ants or visitors are
food, then no ITC will be available on taxable.
inputs including capital goods and in
turn if they supply food to the doctors
and their staff; such supplies, even
when not charged, may be subjected to
GST.

9. Further, it was brought to the notice of committee members that re-
cently the Central Board of Excise and Customs & Commercial Taxes Depart-
ment of States/Union Territories clarified the rate of Tax as under

Restaurant under composition scheme Composition Levy @ 5% of the
turnover
All stand-alone Restaurants (Air- 5% (without ITC)
conditioned Or otherwise)
Restaurants in hotel premises having room 5% (without ITC)
Tariff of less than Rs. 7,500 per unit per day
Restaurants in hotel premises having room 18% (Full ITC)
Tarrif of Rs. 7,500 and above per unit per
day (even for a single room)
Is there any restaurant where the rate of Tax No
is 28%?
Rate of tax on takeaway As applicable on serving of Food
for consumption on Premise of
that restaurant
Outdoor Catering 18% (Full ITC)

10. Submitting the above, it was informed that the Hospital authorities
are refusing to repay the GST on Supply of food to Hospital as per the above Cir-
cular instructions and also informed that the GST already paid by Hospital Au-
thorities will be recovered from future bills.
11. The Advance Ruling was sought for whether GST is payable on
supply of food by the applicant to hospitals on outsource basis. In the case at
hand, the Applicant is engaged in supplying food and beverages at the canteen
of their customers. The Applicant himself does not get paid for by the consumers
of the food and beverages. The Recipient of the services are hospitals who enter
GST LAW TIMES  3rd September 2020  214