Levy of GST—The Appellant had filed an application for Advance Ruling under section 98 of the CGST Act, 2017 and KGST Act. 2017 on the question as to whether GST is leviable on the rent payable by a hospital supplying lifesaving services (cardiology and emergency services).
3. It was decided by the Karnataka Advance Ruling Authority vide Ruling No. KSA ADRG 4/2018 dated 21st March 2018 = 2018 (5) TMI 1704 - AUTHORITY FOR ADVANCE RULING - KARNATAKA that GST is leviable on the rent paid / payable for premises taken on lease by the Applicant.
4. Aggrieved by the said ruling of the Authority (hereinafter referred to as ‘impugned order’), the applicant has filed an appeal under section 100 of the CGST Act, 2017 / KGST Act, 2017 on the following grounds:
i. The Advance Ruling Authority has erred in holding that GST is leviable on the rent paid / payable on premises, taken on lease by the Applicant, under the facts of the case and has not considered grounds of appeal / statement of Applicant’s interpretation of law or facts, as the case may be in right earnest thus violating the principals of natural justice.
ii. The Appellant is not required to pay GST on room rent collected from the patients and also on supply of medical services to the ailing patients undergoing critical heart care treat mentor lifesaving services.
iii. The Appellant does not have taxable value of supply of medical services by virtue of exemption granted in GST Law. As a result payment of GST on rent of the premises remains non set-off against output tax i.e., ITC cannot be availed due to nil tax payable under GST law on supply of medical services to the patients.
iv. That there is no provision to get refund of ITC to the extent of GST paid/payable on the rent of the premises. Hence, the very purpose of payment of GST on rent does not serve any purpose. Thus, they are put to great financial hardship on this aspect which has to be adjudicated by the Appellate Authority for Advance Ruling.
v. In view of the above, the Appellant pleaded that the impugned order be set aside.
Held that :- We uphold the Order No. KSA ADRG 4/2018 dated 21st March 2018 = 2018 (5) TMI 1704 - AUTHORITY FOR ADVANCE RULING - KARNATAKA passed by the Advance Ruling Authority and accordingly the Appeal filed by the Appellant - M/s. Tathagat Heart Care Centre LLP stands dismissed on all counts.[2018] 4 TAXLOK.COM 91 (AAAR-Karnataka)