How should firms prepare to deal with intra-company services under GST?

Major challenges could be faced by entities that cannot claim input tax credit such as entities engaged in hospital, liquor, electricity supply

Why is corporate India in a tizzy over the ruling by the Authority for Advance Rulings, Karnataka, in the Columbia Asia Hospital case? Sudipto Dey finds out.

What is the case all about?

The case was about the applicability of GST on the transactions/services provided by the head office to manage its branch offices located in other states. Bengaluru-based Columbia Asia Hospitals sought advance ruling on whether the activities performed by its employees at the corporate office — such as accounting, IT or other administrative duties — for the units located in other states shall be treated as supply or not. 

The Authority