The Chhattisgarh Authority for Advance Ruling ( AAR ), ruled that installation, Parts and Service of Oxygen Supply System to Hospitals and Homes attract 18% GST.
Advance Ruling under Section 98 of the Chhattisgarh GST Act, 2017 by the applicant, M/s Goel Medico regarding the GST Rate on installation services of parts of equipment for the supply or conduct of oxygen and other gases used in homes and hospitals etc and connection of other gas operated equipment done for Government hospital covid care ward.
The applicant is a service provider engaged in the activity of supply, installing, testing and commissioning of oxygen pipeline system in the government hospital covid care ward. According to the applicant, as per the work orders received they are engaged in composite supply covered under SAC 995464 in the Government Hospital covid care ward. The applicant desires advance ruling regarding the rate of GST on their work/services.
Composite Supply applies for more than oneservice/goods. As per Section 2(30) of the GST Act, 2017, a supply in which a person who is subject to taxation makes a supply of two or more goods/services or both which are subject to taxation, and these goods/services or both, are naturally bundled or rather say are supplied in combination with one another, where one them is a principle supply, then in the ordinary course of business this supply comes under ‘Composite Supply’.
Section 8 of CGST Act, 2017 states that a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply.
Two member bench of the Authority comprising Sonal K Mishra, Joint Commissioner and Rajesh Kumar Singh, Additional Commissioner observed that “Installation services of parts and equipment for supply of Oxygen and other gases used in hospital, homes and connection of other gas operated equipment for Government hospital, attracts 18% GST.”
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