No TDS u/s 194B on Prize won in Gift Coupons: ITAT [Read Order]

The Cochin Bench of Income Tax Appellate Tribunal ( ITAT ) in the case of R.V.V. K. Peringanam v. Income-tax Officer held that where no consideration was paid by the assessee to participate in the gift coupons and the matter pertained to AY 2000-2001, the case was not covered u/s 194B of the IT Act.

The assessee made purchases of cloth from a shop and was given a certain number of price coupons on reaching a certain limit of purchase. The price coupon given to the assessee was under a scheme of the Kasargod vyapari Vyavasaya Ekopana Trust. The assessee won one kg of gold and was issued 600 gms of the same after deducting 40% of the price money u/s 194B of the IT Act. The assessee filed Nil Return and claimed a refund of the 40% price money. The AO, however, rejected the assessee’s claim on the ground that the assessee’s price constituted winning from lottery and tax had been rightly deducted. The CIT on being approached by the assessee also ruled against the assessee. Hence the present appeal.

The assessee submitted that no consideration was paid to participate in the process. The gift coupon is a “free gift coupon”.

The Bench constituting of Shri Chandra Poojari and George K ruling in favour of the assessee held that the essential ingredients of ‘lottery’ prior to 2002 are absent. It held that by any stretch of the imagination, it cannot be presumed that the assessee visited a particular merchant and purchased the dress material from him with the intention to participate in the lot.

It has been discussed that the reason why the Explanation to Section 2(24)(ix) w.e.f. 1.04.2002 was added was to bring within the purview of Section 194B, winnings from prizes awarded to any person by a draw of lots under any scheme, whether or not the participant had paid a price for acquiring the chance of winning the prize. However, since the present appeal relates to AY 2000-2001, the amended definition shall not apply.

Income Tax Dept withdraws 969 Appeals from High Courts, ITAT in Andhra Pradesh and Telangana

The Income Tax Department of Andhra Pradesh and Telangana has withdrawn 969 appeals from Telangana, Andhra Pradesh High Courts and Income Tax Appellate Tribunals (ITAT).

The CBDT had issued a Circular raising the threshold of filing cases in ITAT, High Court and Supreme Court.

According to the Circular, To effectively reduce taxpayer grievances/litigation and help the Department focus on litigation involving complex legal issues and high tax effect, the monetary limits for filing of appeals by the Department were last revised on 11th July, 2018 vide CBDT Circular No.3 of 2018. As a step towards further management of litigation by the Government,  the monetary limits for filing Departmental appeals before various appellate fora including ITAT, High Court & Supreme Court have been revised as under:

The cases were dismissed on the basis of a recent circular issued by CBDT on August 8, 2019, raising the threshold for filing cases.

The entire exercise of withdrawal of cases, on the basis of an order issued on August 8 for enhancement of monetary limits for filing of appeals in tribunals (ITAT) and courts (HC and Supreme Court), is stipulated to be completed by October.

Artificial Body Parts / Devices implanted by Surgical Procedure exempt from GST: AAR [Read Order]

The Kerala bench of the Authority of Advance Ruling ( AAR ) in an application filed by M/s Baby Memorial Hospital Ltd held that artificial body parts / devices implanted in the body by means of a surgical procedure shall be classified as a composite supply which shall be exempt since the principal supply is healthcare service.

The Bench constituting of Hon’ble Members B.G. Krishnan and B.S. Thyagarajababu has ruled as follows:

On the issue of whether the applicant, a Multi-Speciality Hospital is liable to pay GST on supply of medicines, drugs and other surgical goods from its pharmacy to inpatients, the Authority held that such supply is in course of providing health care services which are naturally bundled and shall constitute a ‘Composite Supply’ which shall be eligible for exemption under the category ‘health care services’.

On the issue of whether the applicant is liable to pay GST on the supply of medicines, drugs and other surgical goods from its pharmacy to outpatients, it has been held that GST shall be applicable on such supply.

On the third issue of whether the applicant is liable to pay GST on supply of incidental services as X-ray, Clinical laboratory etc rendered as a part of health care service, while referring to Notification No. 12/2017, the Authority held that the services by way of diagnosis come under the category of health care services covered under SAC 9993 and thereby stand exempted.

On the fourth issue of whether the applicant is liable to pay GST on supply of implants and artificial limbs made during course of treatment to patients, the Authority ruled that the supply of artificial body parts/devices such as heart valve, artificial kidney, artificial joints, and coronary stents etc which are implanted in the body essentially by means of a surgical procedure can be classified as a composite supply where principal supply is of healthcare services.

In other cases of artificial body parts/devices which are worn/attached/fitted/fastened to the body for which a surgical procedure may or may not be required; the nature/taxability of supply has to be determined on a case to case basis considering the facts and circumstances of each case. Also, wheelchairs, tricycles supplied to the patients cannot be considered as a composite supply where the principal supply is health care services and hence shall be liable to GST as individual supply of goods.

Karnataka GST Dept. issues Circular on New Returns: Offline Tool and Online Version of Form GST ANX-1 and Form GST ANX-2 available for User Acceptance Testing [Read Circular]

In a recent circular No. 27/2019-2020 dated 31.10.2019 by the Government of Karnataka on the subject – ‘User Acceptance Testing of New GST Returns Offline Tool and online version of Form GST ANX-1 and Form GST ANX-2’, the Department discusses the salient features of new returns format.

The Circular states that the new return format is proposed to be put into place from April 2020 and the Prototype system of new GST return will be for taxpayers and other stakeholders to familiarize themselves with the ANX-1, ANX-2 and the matching tool. Further, the implementation plan of the new returns shall be introduced soon. The GSTN has released an interactive web-based trial version of the New Returns (Trial) Offline Tool of Form GST ANX-1, Form GST ANX-2 (with Matching Tool built in it) and a template of purchase register for matching.

The issues and problems being encountered at the time of testing of ANX-1 and ANX-2 can be shared as feedback or suggestions with the GSTN by filling in the template and mailing the same t Feedback.NewReturn@gstn.org.in marking a copy to the concerned LGSTO/SGSTO.

Training on the features and functionalities of New Returns (Trial) Offline Tool of Form GST ANX-1 and Form GST ANX-2 will be imparted to 45 Master Trainers and three Master trainers will be the Nodal officers for each division to assist the LGSTO/SGSTO and the taxpayers. All the master trainer details will be hosted on the web https:gst.kar.nic.in

MCA cautions Defaulters of Non-Filing of Financial Statement or Annual Return for Continuous period of Three Financial Year

The Ministry of Corporate Affairs ( MCA ) has cautioned defaulters of non-filing of financial statement or annual return for a continuous period of three years.

The MCA said that, the Registrars of Companies (ROCs) are in process of identification and flagging of directors disqualified under section 164(2)(a) of Companies Act, 2013 for their default of non-filing of financial statement or annual return for continuous period of three financial years i.e. 2015-16, 2016-17 and 2017-18.

The MCA also said that, The defaulting directors are cautioned to find the pending statutory returns and do necessary compliance as per provisions of law, otherwise action will be initiated under Section 164 of the Companies Act, 2013 and Rules made thereunder.

The DINs of such directors are not allowed to be used for filing any e-forms on MCA21 portal, the MCA also added.

According to Section 164 of the Companies Act 2013 deals with disqualification of Directors, Once a person is disqualified as a Director, he/she will not be eligible for being appointed as Director of that company or any other company for a period of 5 years from the date on which the company failed to file annual compliance.

Rs 95,380 cr Gross GST Revenue collected in October

The gross GST revenue collected in the month of October, 2019 is ₹ 95,380 crore of which CGST is ₹ 17,582 crore, SGST is ₹ 23,674 crore, IGST is ₹ 46,517 crore (including ₹ 21,446 crores collected on imports) and Cess is ₹ 7,607 crore (including ₹ 774 crores collected on imports). The total number of GSTR 3B Returns filed for the month of September up to 31^st October, 2019 is 73.83 lakh.

The government has settled ₹ 20,642 crores to CGST and ₹ 13,971 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of October, 2019 is ₹ 38,224 crores for CGST and ₹ 37,645 crores for the SGST.

The revenue during October, 2019 is declined by 5.29% in comparison to the revenue during October, 2018. However, during April-October, 2019 vis-à-vis 2018, the domestic component has shown 6.74% growth while the GST on imports has shown negative growth and the total collection has grown by 3.38%.

The chart shows trends in revenue during the current year.

CA Students can give Feedback on Question Papers of CA Examinations – November 2019, says ICAI

The Institute of Chartered Accountant of India ( ICAI ) has said that, CA Students can give feedback on the questions papers of CA Examinations – November 2019.

The ICAI also said that, candidates can bring to the notice of the Examination Department, their observations, if any, on the question papers relating to CA Examinations being held in November 2019 by e-mail at examfeedback@icai.in or by way of a letter, sent by Speed Post, at the following address, so as to reach us latest by 25th November 2019;

The Additional Secretary (Exams)
The Institute of Chartered Accountants of India
ICAI Bhawan
Indraprastha Marg
New Delhi 110 002.

The ICAI also clarified that, only those observations of students will be taken up for consideration who provide their following details i.e.; Name of the Student, Registration Number, Roll Number, email-id and Mobile Number.

CBIC notifies Jurisdiction of Jammu Commissionerate over UT of J & K and Ladakh [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) has notified Jurisdiction of Jammu Commissionerate over Union Territory of Jammu & Kashmir and Union Territory of Ladakh.

By the Virtue of Jammu and Kashmir Reorganization Act, which downgrades and bifurcates the State of Jammu and Kashmir into the Union Territory of Jammu & Kashmir and Union Territory of Ladakh with effect from October 31.

The Central Government had earlier notified October 31 as the ‘appointed day’ for the taking effect of the Act passed by the Parliament on August 6. The Act was made along with the measures taken by the Central Government to revoke the special status enjoyed by the State of J&K by diluting Article 370 of the Constitution.

NAA dismisses Application alleging Profiteering on Ground that Taxable Amount after Introduction of GST reducing rate remained same [Read Order]

The National Anti-profiteering Authority ( NAA ) in the matter of Kerala State Screening Committee on Anti Profiteering v M/s Rosata Vitrified Pvt Ltd dismissed the applicant’s appeal on the ground that the taxable amount after the introduction of GST remained the same.

The applicant alleged profiteering against the respondent on the ground on not passing of the benefit of reduction in the rate of tax.

The DGAP after examining the invoices submitted concluded that there was no change in the per unit taxable amount (excluding GST) of the product “Vitrified Tiles Super Nano Plus” in the post-GST rate reduction period as compared to the pre-GST rate reduction period. Thus the provisions of profiteering were not contravened with.

The Quorum constituting of Sh B.N. Sharma, J.C. Chauhan, R. Bhagyadevi and Amand Shah dismissed the application filed by the applicant. It was held that the base price of the product per box remained the same even after a rate reduction after the introduction of GST. Agreeing with the examination conducted by the DGAP, the Authority held that the respondent was not liable for profiteering.

Recovery of 50% of Parental Health Insurance Premium from Employees does not Amount to Supply: AAR Maharashtra [Read Order]

The Maharashtra bench of the Authority for Advance Ruling ( AAR ) in an application filed by Jotun India Pvt. Ltd. held that the recovery of 50% of the Parental Health Insurance Premium from employees does not amount to supply of service.

The applicant seeks a ruling on whether a recovery of 50% of Parental Health Insurance Premium from employee amounts to the supply of services under Section 7 of the CGST Act.

The applicant has contended that the applicant has paid the entire premium to the insurance company and further recovered 50% of the insurance premium amount from the employees and balance 50% premium is borne by himself. The said service was given ‘in the course of’ or ‘in relation to’ his ‘employment’ and are not in the course or furtherance of business.

The Bench constituting of Members Shri B. Timothy and A.A. Chahure held that the recovery of 50% of the Parental Health Insurance Premium from employees does not amount to supply of service under Section 7 of the CGST Act.

The Bench held that the applicant is not engaged in the ‘business’ of providing insurance coverage. Further, provision of parental insurance cover is not a mandatory requirement under the present laws and not provision of the same shall not affect the applicant’s business in any way. Hence, the activity in question cannot be treated as an activity done in the course of business or in furtherance of business.

Amount Pooled by Clubs to Meet Expenses other than Administrative Expenses liable to GST: AAR [Read Order]

The Maharashtra Bench of the Authority of Advance Ruling ( AAR ) in an application filed by Rotary Club of Mumbai Western Elite held that only membership fees received from members of the club shall be exempt making other collections (except for meeting administrative expenses) liable to GST.

Rotary Club (registered under the GST law) is a part of Rotary International and receives fees from its members to defray its expenditure on meetings and communication, subscription fees, etc.

The applicant sought the ruling of the present authority on whether the amount collected from the members can be considered as supply of goods or services under GST?

It has been submitted by the applicant that the members of the applicant are not entitled to any facilities whatsoever such as sports, fitness, lifestyle, entertainment and personal transportation. The training programs conducted by the applicant for the benefit of members are also collected separately from the members and accounted accordingly. Further, the membership fees collected from the members is towards meeting expenses, administrative expenses and charitable activities.

The Bench constituting of Shri B. Timothhy and Shri A.A. Chahure held that the amount collected by Rotary Club to its members constitutes supply under GST. The said amount is paid towards the convenience of members and pooled together for paying meeting expenses, communication expenses, RI per capital dues, subscription fees to the Rotarian or Rotary regional magazine, district per capita assessment and the same is deposited in a single bank account.

Further, only the membership fees recovered by the applicant from their members shall be exempted from GST. Hence, Expenses other than administrative expenses, collected towards the convenience of members and pooled together for paying various expenses are leviable to GST.

Finance Ministry releases Status Report on Implementation of Several Measures announced by Finance Minister to Boost Economy

The Finance Minister Nirmala Sitharaman had announced several short and long-term measures to boost economy on 23.10. 2019, 30.8.2019 and 14.09.2019.

Out of these a total number of thirty-two measures were announced on 23.08.2019 to boost the economy.  Out of these, thirteen (13) announcements have been fulfilled. In respect of twelve (12) measures announced on 14.09.2019 to boost exports, three (3) announcements have been fulfilled. The rest of the announcements are under active consideration by relevant Ministries. Further, action on one (1) out of three announcements made for the housing has been completed and on other two (2) is also being taken.

A Status Report on fulfilled announcements and those under advanced stage of implementation are reported below: –

I . Announcements implemented

          II. Announcements with significant Progress

a. Announcements made on 23.08.2019:

CBDT extends due date for filing of Income Tax Returns / Tax Audit Reports in Union Territory of Jammu and Kashmir and Ladakh [Read Order]

The Central Board of Direct Taxes ( CBDT ) has extended due date for filing of Income Tax Returns / Tax Audit Reports to 30th November, 2019 in respect of Union Territory of Jammu and Kashmir and Union Territory of Ladakh.

The Notification issued by CBDT said that, “On consideration of reports of disturbances in internet facility in certain areas of Jammu and Kashmir, the Central Board of Direct Taxes (CBDT) has extended the ‘due date’ for filing Income Tax Returns / Tax Audit Reports to 30^th November, 2019 in respect of all categories of Income Tax Assessees in the Union Territory of Jammu and Kashmir and Union Territory of Ladakh who were/are required to file the Income Tax Returns / Tax Audit Reports by the due date specified under Section 139 (1) of the Act read with order of CBDT under Section 119 of the Act.”

The CBDT also clarified that, “ITRs filed by the certain categories of Income Tax assesses who were required to file ITRs by 31.08.2019, but have filed ITRs after 31.08.2019 till the date of issuance of this order shall be deemed to have been filed within the due date specified under Section 139 (1) of the Act read with CBDT’s order”.

KPMG hiring B.Com Graduates for Audit Assistant

The KPMG India has invited applications from B.Com graduates for the post of Audit Assistant.

Job Description

• The incumbent will work with the audit practice to execute audit/accounting services.
• The Individual:
• The candidate will be expected to be a team member in large assignments with the audit team.
• Possess a good understanding of Accounting and Auditing concepts.
• Have the ability to work under pressure, stringent deadlines which may demand extended working hours.
• Have strong soft skills like interpersonal skills, team skills, communication skills both verbal and written.

The Role:

• Audit of bank reconciliation statements.| assisting with bank confirmations | verification of statutory dues.
• Verify expenses, the amount appearing in the books of account with the supporting documents viz. invoices, agreements.
• Perform cut off procedures over sales and purchases and subsequent vouching for other income &expense items.
• Preparing synopsis of contracts, internal audit reports, minutes of the meeting of the Board of directors
  Assist the team with support for preliminary risk formalities.
• The role also involves standardization of processes, documentation, analysis of technical issues and research solutions

Education Qualification

Education: UG -B.Com – Commerce

For Further Information Click here.

ICAI Campus Placement Programme: CA Fresher bags ₹36 lakhs Annual Salary Package

In a Campus Placement drive conducted by the Institute of Chartered Accountants of India ( ICAI ), a newly qualified Chartered Accountant has bagged ₹ 36 lakhs Annual Salary Package.

In order to connect and bring together the Newly Qualified Chartered Accountants and the recruiters on a common platform, ICAI has recently organised the 50th edition of Campus Placement Programme, Sep-Oct, 2019 at nine bigger centres viz. Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Kolkata, Mumbai, New Delhi and Pune.

In this placement drive, more than 1900 jobs have been offered till date with the highest salary offered for domestic and international posting as ₹ 22 lakhs and ₹ 36 lakhs respectively. Further, placements at 9 smaller centres are ongoing from 22nd October to 25th October, 2019 for which 2160 candidates have been shortlisted to appear for the interviews till date.

ICAI initiates talks amongst stakeholders to catalyse Government Accounting Reforms

The Institute of Chartered Accountants of India ( ICAI ) has initiated talks amongst stakeholders to catalyse Government Accounting Reforms.

Recently, ICAI organised a National Summit on “Transparency and Accountability in Government Financial Management” in New Delhi. The Summit was inaugurated by Sadhvi Niranjan Jyoti, Hon’ble Minister of State for Rural Development in the presence of Shri S.S. Dubey, Joint Secretary and Financial Advisor, Ministry of Housing and Urban Development, Vice-President, ICAI, Chairman and Vice-Chairman of the Committee on Public and Government Financial Management, ICAI.

The Hon’ble Minister acknowledged the efforts of Chartered Accountants in maintaining the financial health of the nation, expected that all stakeholders, once brought together through this Summit, will work in tandem to give momentum to the accounting reforms in the Government. Shri S.S. Dubey, JS & FA, MoHUA mentioned that the Ministry would like to work in close partnership with ICAI to facilitate, promote and encourage Urban Local bodies to move towards accrual accounting.

The two days Summit was addressed by senior Government officials including many IAS, IA&AS, ICAS officers and professionals. The Summit witnessed the participation of government officials from more than 20 States and Union Territories.

CBIC again issues FAQs on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 [Read FAQs]

The Central Board of Indirect Taxes and Customs ( CBIC ) has issued Frequently Asked Questions ( FAQs ) on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

The CBIC has addressed more than sixty questions and answered the topics including eligible to file declaration under the Scheme, scope under the Scheme when adjudication order determining the duty/tax liability is passed and received prior to 30.06.2019, but the appeal is filed on or after 01.07.2019, Status of final decision taken by the designated committee on my declaration, scope of coverage of periodical SCNs under the Scheme, benefits available under the Scheme, benefits of discharge certificate issued under the Scheme etc…

In the Union Budget 2019-20, the Hon’ble Finance Minister announced the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019. The Scheme is operationalized from 1st September 2019. The Scheme would continue till 31st December 2019. The government expects the Scheme to be availed by a large number of taxpayers for closing their pending disputes relating to legacy Service Tax and Central Excise cases that are now subsumed under GST so they can focus on GST.

The two main components of the Scheme are dispute resolution and amnesty. The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Service Tax that are subsumed in GST and are pending in litigation at various forums. The amnesty component of the Scheme offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law. The most attractive aspect of the Scheme is that it provides substantial relief in the tax dues for all categories of cases as well as full waiver of interest, fine, penalty, In all these cases, there would be no other liability of interest, fine or penalty. There is also a complete amnesty from prosecution.

For all the cases pending in adjudication or appeal – in any forum – this Scheme offers relief of 70% from the duty demand if it is Rs.50 lakhs or less and 50% if it is more than Rs. 50 lakhs. The same relief is available for cases under investigation and audit where the duty involved is quantified and communicated to the party or admitted by him in a statement on or before 30th June 2019. Further, in cases of confirmed duty demand, where there is no appeal pending, the relief offered is 60% of the confirmed duty amount if the same is Rs. 50 lakhs or less and it is 40% if the confirmed duty amount is more than Rs. 50 lakhs. Finally, in cases of voluntary disclosure, the person availing the Scheme will have to pay only the full amount of disclosed duty.

As the objective of the Scheme is to free as large a segment of the taxpayers from the legacy taxes as possible, the relief given thereunder is substantial. The Scheme is specially tailored to free a large number of small taxpayers of their pending disputes with the tax administration.

GST not applicable on Adoption Fees received from Adoptive Parents by Trust under Adoption Law: AAR Maharashtra [Read Order]

The Authority of Advance Ruling in Maharashtra has ruled that, Goods and Services Tax ( GST ) is exempted on Adoption Fees received from Adoptive parents by Trust under Adoption Law.

The AAR was hearing a question, Whether the activities conducted by The Children of the World (India) Trust are the “Charitable Activities” exempted under the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended and consequently, the receipt of the Adoption Fees paid under Regulation 46 of the Adoption Regulations, 2017 by the Prospective Adoptive Parents to the Trust is exempted from the levy of Goods and Services Tax?

The Applicant seeking a ruling on whether their activities are exempted under the Entry No.1 of the Notification 12/2017 CT dated. 28.07.2017 and in the second part of the question the applicant queried, whether the receipt of the Adoption Fees paid under Regulation 46 of the Adoption Regulations, 2017 by the Prospective Adoptive Parents to the applicant Trust is exempted from the levy of Goods and Services Tax.

The applicant has submitted that ‘Children’ are neither “goods” nor is there any “service” provided by them to the adoptive parents and therefore the essential element of supply namely “in the course or furtherance of business” is missing from the chain of activities, because their activities neither answer the definition of ‘business’ under section 2(17) of the CGST Act nor do the fees received from the adoptive parents to be a ‘consideration’ under the Section 2(31) of the CGST Act.

The applicant is a Specialized Adoption Agency as defined under the relevant laws and they have established a shelter, namely, “Vishwa Balak Kendra”, in their own building and provide shelter, food, clothing, healthcare, foster care and basic education to abandoned, orphaned or homeless children below 6 years of age till the time of adoption. We further find that their activities which are in the nature of “Charitable Activities”, also consists of the advancement of educational programmes or skill development relating to abandoned, orphaned or homeless children. Such activities are clearly covered under Sr. No. 1 of Notification No.12/2017- C.T. (Rate) dated 28.06.2017 as amended from time to time and the applicant is an entity registered under Section 12AA of the Income Tax Act, such activities carried out by the applicant is exempted by the said notification.

The AAR bench of B.Timothy and A.A Chahure observed that, “The activities conducted by the applicant are “Charitable Activities” which are exempted under Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended. The receipt of the Adoption Fees paid under Regulation 46 of the Adoption Regulations, 2017 by the Prospective Adoptive Parents to the Trust is exempted from the levy of Goods and Services Tax exempted under Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended”.

No Input Tax Credit on Services used Exclusively for Providing Exempted Services: AAR Tamil Nadu [Read Order]

The Authority of Advance Ruling in Tamil Nadu has ruled that, the input tax credit ( ITC ) is not available on the input services used exclusively for providing exempt services of health services to inpatients such as laundry services used for inpatients.

The AAR also said that, For Input services such as housekeeping, leasing of equipment used for both exempt supply of health services to inpatients and taxable supply of medicines etc. to outpatients, the appropriate ITC eligible is determined by Rule 42 of the CGST Rules 2017 and TNSGST Rules as amended read with Section 17 (2\ of CGST /  TNGST Act 2017.

The Authority was hearing the questions;

1. Whether the medicines, consumables, Surgical and implants used in the course of providing health care services to patients admitted to the hospital for diagnosis or treatment would be considered as “Composite Supply” of health care services under GST and consequently, the exemption under Notification No.72/2077 read with section 8 (a) of GST?
2. Whether ITC is eligible for obligatory services provided to In-patients through outsourcing
3. Washing and Sewage Removal – 100%
4. House Keeping and Lease Rent in Manhinenr – On Proportionate basis.

The applicant is engaged in the health care service sector providing comprehensive patient care of International quality standards across all strata of the community with cutting edge technological equipment and by renowned medical specialists. They intend to create a sustainable health care system for the people of this region which shall be one of the most contemporary healthcare facilities with the latest infrastructure to deliver treatment as per the latest advances in modern medicine. They have categorized the patients as out-Patients and in-patients for administrative convenience. The out-patients are those who visit the hospital for routine check-ups or clinical visits. The in-patients are those who are admitted into the hospital for the required treatment. The inpatients are provided with stay facilities, medicines, consumables, surgical and implants, dietary food and other surgeries/procedures required for the treatment.

The AAR bench of CGST Member Manasa Gangotri Kata and TNGST Member Kurinji Selvaan V.S observed that, Medicines, consumables and implants used in the course health care services to in-patients by the applicant is the supply of Inpatient Services classifiable under SAC 99931 1.

The AAR also observed that, Supply of health care services or inpatient services by the applicant as defined in Para 2(zg) of Notification no |2/2O17-C.T. (rate) dated 24.06.2017 as amended and Notification No.II (2)/CTR/532(d,-1,5) /2OlT vide G.O. (Ms) No. 73 dated 29.06.2077 as amended is exempted from CGST and SGST as per Sl No 74 of the above notifications respectively.

CCI approves Acquisition of Shareholding in OLA by Hyundai Motor Company and Kia Motors

The Competition Commission of India ( CCI ) has approved the acquisition of shareholding in ANI Technologies Private Limited (ANI) and Ola Electric Mobility Private Limited (OEM) by Hyundai Motor Company (HMC) and Kia Motors Corporation (KMC), under Section 31(1) of the Competition Act, 2002.

The Proposed Combination relates to acquisition of equity stake in ANI and Ola Electric Mobility (OEM) by Hyundai Motor Company (HMC) and Kia Motors Corporation (KMC).

HMC and KMC are a part of the Hyundai Motor Group (HMG), engaged in the business of manufacturing and distribution of automobiles, automobile parts and accessories, after-sales service, research and development of automotive engineering across several countries in the world.

In India, HMC primarily operates through its subsidiary Hyundai Motors India Limited. KMC operates through its subsidiary Kia Motors India Private Limited, in India.

ANI is a ride-sharing company that integrates city transportation for customers and driver-partners onto an online platform ensuring convenient, transparent and quick service fulfilment. OEM is at a nascent stage of operations and envisages operating primarily in the electric vehicles value chain, with focus on the market for charging infrastructure.

The Commission approved the Proposed Combination subject to the carrying out of modifications proposed by HMC and KMC, under Regulation 19 (2) of the CCI (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.

GST: Builder Nani Resorts held Guilty of Profiteering for not passing ITC Benefit [Read Order]

The National Anti-Profiteering Authority ( NAA ) in the matter of Sh Sandeep Kumar v M/s Nani Resorts held the respondents guilty of profiteering and hence a refund of the profiteered amount.

The profiteering has been alleged in respect of the purchase of a flat in Nani Resorts’ Project wherein the benefit of input tax credit had not been passed by way of commensurate reduction in price at the time of introduction of GST.

The respondent submitted that since the Authority had not prescribed any procedure or methodology for determination of reduction n the rate of tax on the supply of goods or services or the benefit of ITC has been passed on or not by the registered person to the recipients as required under Rule 126 of the CGST Rules, 2017, the investigation agency has followed approach of comparing average ratio of ITC with turnover, which is not feasible or appropriate in case of real estate business and which is also against the basic principles of accounting i.e. the matching concept, wherein the accrual of ITC may not necessarily match with sales/output of current accounting period. Hence, the said procedure adopted is bad in law. The respondent further submitted that the increase in prices after the introduction of GST as a result of natural inflation.

The DGAP on being directed by the Authority to investigate reported that the Authority has reasons to believe that there has been profiteering. In furtherance to the said inquiry, the Authority has held that the Respondent has realized more price from the buyers of flats and hence is liable for imposition of penalty under Section 171(3A) of the CGST Act.

While answering the respondent’s contention, the Authority held that the profiteering and the extent thereof is determined on cases to case basis, by adopting the most appropriate and accurate method based on the facts and circumstances of each case as well as nature of the goods and services supplied. Also, that the Authority’s analysis of profiteering is based only on the changes after the introduction of GST and not costing.