2021-TIOL-306-HC-KERALA-GST
Rajive And Company Vs Asstt Commissioner
GST - "Chungath" jewellery - State Tax Officer at Ernakulam was entrusted with the continuation of proceedings after raids were conducted in various business premises of the group by State Tax Officers of the Investigation Wing stationed at the respective locations - It is the prayer of the petitioners that the investigation with respect to them may be carried out by an officer at Kollam especially due to the COVID situation as also due to the voluminous documents which would have to be transported to Ernakulam - Single Judge noticing the averments made on behalf of the Department viz. that books of accounts being maintained in a digital format the specific ground raised by the petitioner cannot at all be countenanced, declined exercise of discretion under Article 226 - appeal filed against this order before the Division Bench.
Held: Bench does not think that the location of the lawyer can at all be a reason for the department to carry out proceedings in a particular place - It is also for the Department to decide, which of its officers should continue the proceedings and the assessee cannot have a choice in the matter - The Officer cannot be independently asked to concentrate on the investigation against the petitioners since he would have other work at his office in Ernakulam - Further the officer requires the assistance of his staff and there cannot be shifting of the office as such to Kollam - In the above circumstances Bench does not find any reason to interfere with the refusal of the Single Judge, to exercise jurisdiction under Article 226 - Writ Appeals would stand dismissed in limine : High Court [para 4 to 6]
- Appeals dismissed: KERALA HIGH COURT
2021-TIOL-305-HC-KERALA-GST
Midas Electricals Pvt Ltd Vs STO
GST - Aggrieved by the detention of the goods that were being transported at the instance of the petitioner, the present petition is filed - ground being that the transportation was not accompanied by a valid e-way bill.
Held: Detention cannot be said to be unjustified - amount found due and payable by the petitioner in the order passed under FORM GST MOV - 7 is Rs. 2,95,560/- - Bench directs that if the petitioner furnishes a bank guarantee for the said amount, then the respondent shall permit the petitioner to clear the goods and the vehicle - The respondent shall thereafter, proceed to pass the final order under Section 129(3) in FORM GST MOV - 9: High Court
- Petition disposed of: KERALA HIGH COURT
2021-TIOL-67-AAR-GST
KSF 9 Corporate Services Pvt Ltd
GST - Applicant entered into an agreement with The Karnataka State Rural Development & Panchayat Raj University, Karnataka State Warehouse Corporation for provision of manpower supply services - The recipients of the service instructed the applicant to charge GST @ 18% only on the service charges but not on total billed amount, therefore, the applicant has sought advance ruling in respect of the following question - Whether applicant should charge GST @ 18% for providing manpower services only on the services charges or on the total bill amount?
Held: The applicant is being paid services charges @2%, in addition to the wages and hence they (recipient of services) directed the applicant to charge GST on the service charges only but not on the bill amount - Applicant (supplier) and the recipients are not related and the price is the sole consideration, therefore in terms of s.15 of the Act, 2017, the value of the taxable supply of manpower services of the applicant shall be the transaction value i.e. the total bill amount inclusive of actual wages of the manpower supplied and the additional 2% amount paid to the applicant - Ordered accordingly: AAR
- Application disposed of: AAR
2021-TIOL-66-AAR-GST
Dr HB Govardhan
GST - Applicant, a proprietary concern, registered under the provisions of the Goods and Services Act, 2017, is a Medical Doctor specialising in Cancer and other General Health Care Services and presently working in KIDWAI HOSPITAL as Salaried Employee and also is rendering Consulting Services to Hospitals/ Laboratories / Biobanks registered in United States of America (USA) and other countries through phone calls, Video Conference, Mails and other Electronic devices - Applicant is living in India and rendering all medical consultancy services from India to Hospitals/ laboratories / biobanks and receives monthly/ quarterly remuneration from USA and other countries in dollars / foreign currency – Applicant further states that he desires to practice in India part time and receive consultancy income in India from Indian Hospitals/ Laboratories and health care services – Applicant seeks a ruling as to whether (a) Is the applicant eligible to be registered under GST Act? (b) Is there any tax liability on services rendered to the Hospitals / Laboratories/ Biobanks registered in United States of America (USA) and other countries includes export of intellectuals like clinical data completions, analysis, clinical opinion advisory consultation through Phone calls, Video Conference, Mails and other Electronic devices and the applicant is living in India and services rendered from the place of India? and (c) Is there any tax liability on Heath Care Services/ Medical Services and Paramedical Services (Part-time practicing in Clinic) rendered in India to the recipient from India?
Held:
+ Applicant is providing two types of services - (1) Consultation Services in diagnosis and treatment of illness to the Hospitals, Laboratories and Biobank companies, and (2) Business Promotion Services like organising collaborative projects between the foreign company and the clinical centres located in India and business development for the foreign companies.
+ Insofar as the first service is concerned, it is clear that the applicant is a clinical establishment as it is a place established to carry out diagnostic or investigative or treatment services of diseases - In view of the above, it is clear that the services provided by the applicant are covered under clause (a) of Entry no. 74 of the Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 and hence are exempt from tax under the CGST Act. Similarly, it is also exempted from tax under the KGST Act, 2017 and also under the IGST Act, 2017 .
+ Regarding the second type of services, i.e. Business Promotion Services provided by the applicant to the foreign companies [M/s Cureline , Inc., USA - Cureline clinical network], it is seen that the applicant is a registered person in India and the recipient of services is the foreign company - The applicant is getting the consideration in foreign currency from the foreign company to which he is providing services.
+ In the instant case, the applicant is providing business promotion services on behalf of the foreign company, as an agent, by utilizing his medical expertise in organising collaborative projects, histopathological consulting and business development. Thus the applicant indubitably is committed through the agreement to facilitate the supply of services, in relation to establishment of Indian clinical centres in India, on behalf of the foreign company, as an agent, but not on his own account. Hence the impugned services squarely get covered under intermediary services.
+ The applicant being a service provider, as an intermediary, becomes a taxable person and hence is liable for registration in terms of Section 22(1) of CGST Act 2017.
+ The place of supply is India, in terms of Section 13(8) of the IGST Act 2017 and hence the impugned services are not covered under export of services, as all the required conditions are not fulfilled. Nature of services provided by the applicant are business promotion and management services, covered under SAC 9983 and are liable to tax at 9% CGST under entry no. 21 (ii) of the Notification No. 11/2017- Central Tax (Rate) .
+ As regards applicability of tax liability on the health care services - Medical Services and Paramedical services (part time practicing in Clinic) rendered in India to the recipient from India, it is clear that the diagnostic and treatment services provided by the applicant from his clinical establishment to any person in India would be exempt as per the entry 74 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and entry 74 of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017 and entry 77 of Notification No. 09/2017- Integrated Tax (Rate) dated 28.06.2017.
- Application disposed of: AAR
