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Gst - luxury tax vs vat

purnima (accounts manager) (59 Points)

23 June 2017

Sir,

Can the tax paid on rent of hospital building and luxury tax on room rents be set off against tax payable on pharmacy sales

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 June 2017

Luxury tax will be abolished, healthcare by hospital will be exempted service.............no output GST........ so no ITC.

purnima (accounts manager) (59 Points)
Replied 28 June 2017

Sir,

It is true that there is no tax on output ie., hospital services. But on sale of medicines to both inpatient and outpatient and outsiders we have to pay vat. As there is no separte tax head as VAT etc.,s and all are GST why can't we claim input?

purnima (accounts manager) (59 Points)
Replied 28 June 2017

Thanks in advance,sir.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 28 June 2017

The Vat will be repaced with GST.

So, for the GST paid on medicine............ you can take deduction over the GST collected over sale of the medicine.......... and for that you will have to register the hospital business under GST........