Appellate Orders

Whether the medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment for patients opting with or without packages along with allied services i.e. (room rent/food/doctor fees etc.) provided by hospital would be considered as “Composite Supply” and accordingly eligible for exemption under the category “Health Care Services.

The parts and accessories of hearing aids merits classification under heading 90219010 and are not entitled for exemption under entry 142 of Notification 2/2017 CT(Rate) dated 28.06.2017 but are chargeable to tax rate of 18% in terms of in terms of entry No 453 of Schedule III to Notfn No 01/2017 CT(Rate) dated 28.06.2017.

Appellate authority  remanded the case to the Advance Ruling Authority for a fresh consideration after taking into account the observations made by the Appellate Authority.  

Supply of imported goods i.e. component needed for Pneumatic Conveying System made by the appellant to its customers on High Sea sales basis will not be treated as supply of "goods" by vertue of entary 8(b) to the Schedule III of CGST Act, 2017 as amended, with effect from 01.02.2019 Howeever, the supply of "services" in relation thereto, if any, will fall under the purview of "supply" as defined under Section 7 of the CGST Act.

The Maharashtra Appellate Authority for Advance Ruling, hereby, concur with the impugned advance ruling pronounced by the MAAR in respect of the question no. (i), (ii) and (iii)(b). Furthermore, modify the ruling of the MAAR with regard to question number (iii)(a), (iii)(c) and (iii)(d), and hold that-
i. The fees and other charges received from students and recoupment charges received from patients would constitute as a consideration for “outward supply” as defined in section 2 (83) of the CGST Act, 2017 and the supply of educational services or health care services, against which both these charges are collected by the Applicant, are exempted supplies in terms of the entries at Sl. No. 66 and Sl. No. 74 of the Notification No. 12/2017-C.T. (R) dated 28.06.2017 [Answer to Question (iii) (a)].
ii. The charges collected under the “Unparallel Health Insurance Scheme” are to be considered as advance towards the provision of the health care services to the subscribers of this scheme, and accordingly, any amount collected towards this scheme will not be subjected to levy of GST in terms of the entry at Sl. No. 74 of the exemption Notification No. 12/2017-C.T. (Rate) dated 28.06.2017 [Answer to Question (iii) (c)].
iii. The amount received by the Appellant for rendering renting of immovable property services will be considered as separate and independent supplies, and will be taxable at the rate of 18% in terms of the item (iii) bearing the description “Real estate services other than (i) and (ii) above” of the entry at Sl. No. 16 of the Notification No. 11/2017-C.T. (Rate) dated 28.06.2017. whereas, the charges received against the disposal of wastes will be subject to levy of GST as the supply of wastes to the vendors would be construed as independent and separate supply, attracting the levy of GST at the applicable rate prescribed under Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 [Answer  to Question (iii) (d)].

The Maharashtra AAAR has set aside the MAAR Order No. GST-ARA-98/2019-20/B-72 dated 11.10.2021 by holding that both the impugned products, i.e., CRP Test Kit and HbAlc Test kit, will be classified under chapter heading 3002, and accordingly, both the product will attract GST at the rate of 5%
(CGST @2.5 % +SGST @2.5 %) in terms of the entry at SL No. 180 of the Schedule I to the Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 read with entry at SI. No. 125 of the List I appended to the Schedule I to the Notification No. 01/2017-C.T. (Rate) dated 28.06.2017. 

The Maharashtra AAAR has set aside the impugned Advance Ruling Order No. GST-ARA-109/2019- 20/8-112 dated 15.12.2021 by holding that the impugned product, CNG Dispenser, will be covered by SI. No. 422, Schedule III ofNotification No. 01/2017-Central Tax (Rate) dated 28.06.2017. 

The Maharashtra AAAR do not find any reason to interfere with the Advance Ruling passed by the MAAR vide Order No. GST-ARA-19/2021-22/B-94 dated 10.11.2021 wherein it has been held that the Appellant-society is not eligible to avail ITC of the tax paid on the works contract services received from their appointed contractor in terms of the limitations provided under section 17(5)c) of the CGST Aet, 2017, as they cannot be said to be providing works contract services to their members.

Accordingly, we hold that the appeal filed by the Appellant is not admissible in eye of law and therefore, it is dismissed on the ground of limitation itself without going into the merits of the case.

Question-1 Whether the work awarded to the appellant is a composite supply of works contract service.          

Answer-1 Yes, it is a composite supply of works contract service.       

Question-2 Whether the benefit of Sl No. 3(v)(a) of the Notification No. 11/2017-Central Tax (Rate), as amended vide Notification No. 20/2017-Central Tax (Rate) ia applicable ti the subject works.

Answer-2 They are eligible to take the benefit of Sl No. 3(v)(a) of the Notification No. 11/2017-Central Tax (Rate), as amended vide Notification No. 20/2017-Central Tax (Rate) for the subject work.