Is GST paid on vehicles for office purpose eligible for input tax credit?

I am a doctor running an ENT hospital. As I understand this is exempted from the goods and services tax (GST). I am also planning to sell hearing aids to patients. Will I get to claim exemption on the hearing aids I sell, if my turnover is less than Rs 1 crore? 

The GST law has exempted the health care services provided by an authorised medical practitioner from payment of the GST. Therefore, if you are providing such services through your ENT hospital, you should be exempt from payment of the GST in respect of such services.

Hearing aids covered under the HSN Tariff 9021, according to the notification issued by the government, are exempt from the GST.  Therefore, if the goods sold by you are classifiable under the said HSN, you should not be required to charge the GST in respect of such supplies irrespective of your turnover. 

We run a call centre and take service of a doctor on a monthly retainership basis. The doctor is not charging the GST in his invoice. Are we liable to pay the GST under reverse charge on it? 

Health care services provided by an authorised medical practitioner is exempt from the GST. Accordingly, if a doctor appointed as a retainer provides health care services, the same should be exempt. We may clarify that the GST, only in respect of taxable supplies made by an unregistered supplier, has to be paid by the recipient under reverse-charge mechanism.  You should not be required to deposit GST under reverse charge for such services as the same should be exempt from the GST.  It may be highlighted that the provision for payment of the GST under reverse charge for procurement from unregistered suppliers has been deferred till March 31.  

Is the GST paid on motor vehicles exclusively for office purpose eligible for input tax credit? 

Generally, input tax credit of all the goods/ services is permitted as long as such goods/ services are used in course or for furtherance of business for providing taxable supplies.  However, input tax credit in respect of certain goods/ services has been specifically restricted. 

Due to a specific restriction under law, input tax credit of motor vehicle is permitted only when such motor vehicle is procured for re-sale or for transportation of passengers/ goods or for imparting training.  In the instant case, if the motor vehicle is used by you for any of the aforesaid purposes, you should be eligible to claim the input tax credit, otherwise not.   

Amit Bhagat

Should a company be required to charge the GST on the residential apartment and service apartment provided by it to its employees? 

It has been clarified by the government that any supply by the employer to the employee in terms of the contractual agreement entered into between the employer and employee should not be subjected to the GST. Therefore, if the residential apartment or service apartment is provided to the employees as part of such contractual arrangement, the same should not be subjected to the GST. 

I understand that services from a goods transport agency (GTA) is subjected to reverse charge. But do I need to make an invoice tax under reverse charge or payment voucher or both? Is keeping consignment note sufficient? 

Generally, the supplier of services is liable to pay the GST. However, under specified circumstances, the liability to pay the GST has been shifted to the service recipient under the reverse charge mechanism.  A service provider rendering GTA services has the option to either pay tax under forward charge (as a supplier of service) or treat the same to be taxable under reverse charge mechanism (in which case, the GST is payable by the recipient).  If the GST in respect the GTA services is payable under reverse charge and the supplier is not registered, you should be required issue a self-invoice and payment voucher.   However, if the supplier of GTA services is registered under the GST law, you should not be required to issue a self invoice.
 

The writer is tax partner, PwC India. Aditya Khanna, associate director, PwC contributed to this column. The views expressed are experts’ own. Send your queries to yourmoney@bsmail.in