Toyota Innova provided for Medical Treatment of COVID-19 patient a Taxable Service: AAR

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Studycafe | Oct 27, 2021 | Views 458325

Toyota Innova provided for Medical Treatment of COVID-19 patient a Taxable Service: AAR

Toyota Innova provided for Medical Treatment of COVID-19 patient a Taxable Service: AAR

The MAHARASHTRA AUTHORITY FOR ADVANCE RULING, in a matter of Geetee Tours Private Limited, ruled out that “Toyota Innova provided for Medical Treatment of COVID-19 patient a Taxable Service”

The applicant has entered into the contract with “MUNICIPAL CORPORATION OF GREATER MUMBAI (MCGM), Worli, Mumbai -400018 to provide AC SUV and Innova equivalent car services for carrying COVID 19 patients for medical treatment.

Contention of Applicant

Pure services (excluding work contract service or other composite supplies involving supply of any goods) provided to the Central Government State Government or Union Territory or Local Authority or a Governmental Authority by way of any activity in relation to any action entrusted to a panchayat under article 243G of the constitution or in relation to any function entrusted to a Municipality under article 243W of the constitution”.

Further, supplies of vehicles for canying COVID patients for medical treatments would fall under entry no. 6 of the twelfth schedule, Article 243W of the constitution which is reproduced as “Public health, sanitation conservancy and solid waste management”. Thus since this is pure service which is in relation to public health, it would be exempted under GST law.

The applicant is treating supply of vehicles for carrying COVID patients for medical treatment as taxable service, and charged tax on commercial invoices as per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017 as amended, if any.

Ruling

Authority Found that the said supply does not satisfy the provisions of Entry No 3 of Notification no. 12/2017-C.T. (Rate) dated 28th June, 2017 as amended and therefore cannot be treated as exempted. Therefore the same is liable to tax under Notification No. 11/2017-C.T. (Rate) dated 28th June 2017, as amended.

Click on the below link to read the Ruling

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