×
Headlines

GST Registration is required for Medical Stores run by Charitable Trust: AAR [Read Order]

medical Store - GST Registration - AAR - Charitable Trust - Taxscan

The Gujarat Authority of Advance ruling (AAR) that the medical Store providing medicines at a lower rate amounts to the supply of goods and GST Registration is required for medical stores run by Charitable Trust.

The applicant, M/s Nagri Eye Research Foundation is a Charitable Trust and is running a medical store where medicines are given at a lower rate and the motive of the trust is not profit.

The applicant has sought the advance ruling on the issues whether GST Registration is required for medical stores run by Charitable Trust and whether medical stores providing medicines at a lower rate amounts to the supply of goods.

The Authority consisting of Sanjay Saxena and Mohit Agarwal ruled that the medical Store providing medicines at a lower rate amounts to the supply of goods and GST Registration is required for medical stores run by Charitable Trust.

“Applicant is selling medicines from its medical store. Medicine is goods as per subsection 52 of Section 2 of the CGST Act, 2017. Medicine is a taxable supply as per subsection 108 of section 2 of the CGST Act, 2017 and GST is leviable on medicine as per Chapter-30 of HSN code. Therefore, the sale of medicine by the applicant is a taxable supply of goods. The applicant is providing medicines from its medical store at a lower rate so the price paid by the customers is a consideration for the applicant as defined in subsection 31 of Section 2 of the CGST Act, 2017. Further, the activity of the supply of goods by the applicant does not fall under the list appearing in Schedule-III of the CGST Act, 2017. Therefore, we conclude that the applicant is making taxable supply from its medical store, so as and when aggregate turnover (here medicine) of applicant exceeds threshold limit as specified in sub-section(1) of Section 22 of the CGST Act, 2017, the applicant has to obtain registration under the relevant provisions of the CGST Act, 2017,” the AAR said.

To Read the full text of the Order CLICK HERE
Top