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Clarification on GST Exemption

30 March 2023

Dear All,

Good day to all,

I am a Finance Professional have a question in Regards to GST

There are several Service Industry such as Healthcare who are exempted from GST as they cannot charge GST to there Patient (Example- Diagnostic Laboratory Chain) but the Material like ( Reagant & Consumables) they purchase from vendors and get Charged with GST on it which is a Cost to the Company on addition to the cost of Product as because we cannot charge GST from Patients who comes to Diagnostic Laboratories for Services

Is there any Clause which help this industry to save some Cost on the GST which is charged to them but they cannot take claim of it as they dont have Output Tax Scenario but they Pay Input Tax.

Regards

Abhishek Kapoor

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Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 30 March 2023

Dear Abhishek .
As such there is no such clause in GST.
So paid on inward supply will be included in the cost.

THE ONLY WAY CAN ADJUST ITC :
Note : Diagnostic Laborties when sells there capital goods then they are required to deposit GST on same. (Ref: Section 7 r/w Scheule 1) . So if you are registered in GST take the ITC on inward supply & let the ITC get accumulated in your Electronic Credit Ledger & at time of sale of capital goods the ITC can be Adjusted.

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