Goods and Services Tax

Restaurant or canteen

GST – Started By: – Ravikumar Doddi – Dated:- 10-1-2019 Last Replied Date:- 14-1-2019 – Applicant running a canteen in a Hospital, Hospital provides power supply by a sub meter to the canteen, which bills are coming ₹ 1 lak and above per month, hospital collecting 18% GST, is it correct sir, if any exemption please provide Notification/circular and HSN/SAC Code on which they are collecting 18% – Reply By KASTURI SETHI – The Reply = Dear Querist, Hospital is correct. HSN Code is 9969. The relevant extract of Notification No. 11/17-Central Tax (Rate) dated 28.6.17 is reproduced as under : Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (per cent) Condition (1) (2) (3) (4) (5) 13 Heading 9969

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tion from GST levy by Hospital on this transaction is through Pure Agency Concept. Pure Agent is the person enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; does not use for his own interest such goods or services so procured and receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. Further, in order to fall under Pure Agency following conditions has to be satisfied:- (i) the supp

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