Page 199 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] IN RE : NAVNEETH KUMAR TALLA 133
into contract with the applicant. The charges are received from the hospitals on
monthly basis on the coupons collected. In short, it is deciphered that the Appli-
cant is vested with management of the canteen facilities. Supply of food is classi-
fied under Service Code No. 9963. We have examined the relevant notifications
providing exemption to services and found that the services rendered by the ap-
plicant are not taxable.
12. We find that Entry 74 of Notification No. 12/2017 deals with ex-
emption to the services provided by clinical established which is read as under :

Heading Services by way of - Nil Nil
9993 (a) health care services by a clinical establishment,
an authorised medical practitioner or para-
medics;
(b) services provided by way of transportation of a
patient in an ambulance, other than those speci-
fied in (a) above.

From the above, it can be inferred that exemption is available as per the entry of
the above notification only when the clinical establishment itself provides this
service (supply of food) as a part of health care services to the in-patients and the
same is not available, when such supply of food and beverages is made by a per-
son other than clinical establishment based on a contractual arrangement with
such establishment Circular No. 32/06/2018, dated 12-2-2018 supports this view.
Therefore we hold that GST is payable on supply of the services by the
applicant to Hospitals and no exemption is provided in r/o the same.
13. To decide the rate of tax in r/o the supply of services by the appli-
cant, reference is to be made to Notification No. 11/2017-State Tax (Rate), issued
in G.O.Ms No. 110, Revenue (CT-II) Department, dated 29-6-2017 which provides
the rates of tax in respect of various services. The extracts of relevant entries deal-
ing with the services supplied by the applicant are as follows :

7 Heading (i) Supply, by way of or as part of any service 6 -
9963 (Ac- or in any other manner whatsoever, of goods,
commoda- being food or any other article for human con-
tion food sumption or drink, where such supply or ser-
and bever- vice is for cash, deferred payment or other valu-
age services) able consideration, provided by a restaurant,
eating joint including mess, canteen, neither
having the facility of air-conditioning or central
air-heating in any part of the establishment, at
any time during the year nor having licence or
permit or by whatever name called to serve
alcoholic liquor for human consumption.
(v) Supply, by way of or as part of any service 9 -
or in any other manner whatsoever in outdoor
catering wherein goods, being food or any other
article for human consumption or any drink
(whether or not alcoholic liquor for human con-
sumption), as a part of such outdoor catering
and such supply or service is for cash, deferred
payment or other valuable consideration

GST LAW TIMES  3rd September 2020  215