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Hospital take ITC or not

ANKR (PARTNER) (118 Points)

02 August 2017

can hospital take ITC on hospital exp,(gst on rent,gst on Hospital consumed goods,gst paid on manpower supply),because gst not charge by hospital on patient bill,but gst registration taken only for pharmacy.

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12 Replies

RAMESH D MODI (Proprietor) (4864 Points)
Replied 02 August 2017

no as he need not to pay gst or register even

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 02 August 2017

if the hospital has not taken the registration since its exempted. it cant claim itc. however if the pharmacy is registered , then it can take the itc only for those expenses which has been incurred in course of pharmacyz business or furtherance of business

1 Like

ANKR (PARTNER) (118 Points)
Replied 02 August 2017

it's mean itc available only for GST paid on medicine purchase,and no ITC is available on stent purchase for heart operation or GST paid on rent for hospital premises.

second issue is if hospital not registered but is liable to registration of GST doe to rent paid to unregisterd

CA Divyesh Sodha (Partner) (271 Points)
Replied 02 August 2017

ITC is not available again exempt service provided. For second issue if hospital not registered for any other reason it is not liable for registration just because it is paying rent to unregistered person

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ANKR (PARTNER) (118 Points)
Replied 02 August 2017

even if rent 50000 per month

ANKR (PARTNER) (118 Points)
Replied 02 August 2017

it's mean registration is mandatory due to sec 9(3) not due to 9(4).sec 9(4) applicable to register supplier

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 02 August 2017

Yes. Ur right . Registration mandaTory in 9(3)

ANKR (PARTNER) (118 Points)
Replied 03 August 2017

thanks

ANKR (PARTNER) (118 Points)
Replied 03 August 2017

another issue mam,if hospital get registration in GST in any other reason ,then we required to submit hospital bill required to be submit in GST return becz these are exempt service.

ANKR (PARTNER) (118 Points)
Replied 03 August 2017

how to prepare RCM bill in case of hospital

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 03 August 2017

Now if the hospital takes the registration, it would issue bill of supply to the patients, and yes bills required to b submitted in the gst return

Chetna Chandak ( ) (26 Points)
Replied 03 August 2017

I need a clarification on Applicability of GST for the canteen run by the hospital to provide food for the patient.It provides food to staff also, it's a self service canteen.