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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
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PJ/Case Law/2019-2020/3538

ALCON RESORT HOLDINGS PVT. LTD. 2019 (27) G.S.T.L. 293 (A.A.R. - GST)

Case:  ALCON RESORT HOLDINGS PVT. LTD.

Citation: 2019 (27) G.S.T.L. 293 (A.A.R. - GST)

Issue: (a) Whether the applicant qualifies as a clinical establishment?

(b)Whether the incidental services provided by the applicant qualify for exemption under Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017to be health care services?

Brief Facts: The applicant is having an established Centre for providing health care treatment services to the patients through Ayurveda, Naturopathy and Yoga. The applicant provides multiple services like supply of medicines, consumables, implants used in providing health care services along with stay to patients for various treatments.

Respondent’s contention and judgment:

The detailed analysis of definition of clinical establishment and health care services as per the GST Act; it is clearly visible that the applicant qualifies to be a clinical establishment and the services offered/provided by the applicant qualify to be Health Care Services.

We are hereby reproducing the said definitions for your reference.

Clause 2(s) of the Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017, “clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases.

Clause 2(zg) of the Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017 defines “Health Care Services” as under:

(zg)”health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.

Decision: In favor of assessee

This ruling states that the stay for various treatments, supply of medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment are naturally bundled and are provided in conjunction with each other, would be considered as ‘Composite Supply” and eligible for exemption under the category of “health care services”.

For knowledge purpose-

In re ‘Starcare Hospital Kozhikodi Private Limited’ – 2019 (5) TMI 901 - AUTHORITY FOR ADVANCE RULINGS, KERALA and in re ‘Kindorama Health Care Private Limited’ – 2019 (5) TMI 960 - AUTHORITY FOR ADVANCE RULINGS, KERALA the Authority for Advance Ruling held that the medicines, consumables, room rent, nursing charges, doctor’ fees etc., supplied to in-patients which are given to the patients and the patients are under continuous monitoring and nursing staff to control administration and dosage of medicines, are given in a single bundle and charged in a single invoice.  The entire supply squarely covered under composite supply with health care services as principal supply.  The exemption is available from GST under Sr. No. 74 of Notification No. 12/2017-CT (Rate), dated 28.06.2017.

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